Tax-free bonds are issued by government-backed entities like NHAI, IRFC, PFC, REC, HUDCO, and NABARD. The interest earned on these bonds is completely exempt from income tax under Section 10(15)(iv)(h) of the Income Tax Act. While no new tax-free bonds have been issued since 2016, they are available in the secondary market through stock exchanges and bond platforms. For investors in the 30% tax bracket, a 5% tax-free yield equals approximately 7.14% pre-tax return.
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343 Bonds Found
Sorted by YTM. Not a recommendation.| Issuer | Rating | YTM | Coupon | Maturity | Platforms |
|---|---|---|---|---|---|
| AKARA CAPITAL ADVISORS PRIVATE LIMITED INE08XP07399 | BBB | 14.80% | 12.00% | 12M | 1 |
| 12.50 Akara Capital Advisors Private Limited 27 12 2028 INE08XP07324 | BBB | 14.50% | 12.50% | 2.7Y | 1 |
| 12.50 Akara Capital Advisors Private Limited 06 Feb 2029 INE08XP07464 | BBB | 14.50% | 12.50% | 2.8Y | 2 |
| 12.00 Keertana Finserv Limited 25 Jun 2028 INE0NES07311 | BBB+ | 14.00% | 12.00% | 2.2Y | 1 |
| Avanti Finance Private Limited INE0BNQ07154 | BBB | 13.85% | — | — | 1 |
| KEERTANA FINSERV LIMITED INE0NES07279 | BBB+ | 13.85% | 11.40% | 2.0Y | 2 |
| Unifinz Capital India Limited 24 May 2027 INE926R07019 | BBB | 13.81% | 13.00% | 1.1Y | 1 |
| Akara Capital Advisors Private Limited INE08XP07423 | BBB | 13.80% | 12.00% | 1.1Y | 1 |
| 11.00 Samunnati Finance Private Limited 23 Mar 2027 INE0N5S07052 | BBB | 13.80% | 11.00% | 11M | 2 |
| 13.00 Unifinz Capital India Limited 23 Apr 2028 INE926R07027 | A | 13.79% | 13.00% | 2.0Y | 1 |
| Keertana Finserv Limited INE0NES07162 | BBB+ | 13.60% | 11.30% | 11M | 1 |
| Keertana Finserv Limited INE0NES07303 | BBB+ | 13.60% | 12.00% | 2.0Y | 1 |
| KEERTANA FINSERV INE0NES07329 | BBB+ | 13.60% | 12.00% | 1.4Y | 2 |
| Vedika Credit Capital Ltd 05 Dec 2031 INE04HY08011 | A- | 13.50% | 12.50% | 5.6Y | 1 |
| RDC CONCRETEINDIA LIMITED INE076I07020 | BB+ | 13.50% | 12.00% | 1.9Y | 1 |
| RDC CONCRETEINDIA LIMITED INE076I07038 | BB+ | 13.50% | 12.00% | 1.9Y | 1 |
| 13.50 Lucina Land Development Limited 30 Jan 2029 INE0JZO07032 | A- | 13.50% | 13.50% | 2.8Y | 1 |
| LUCINA DEVELOPMENT INE0JZO07040 | A- | 13.05% | 13.00% | 2.8Y | 2 |
| Vedika Credit Capital Limited INE04HY07393 | A- | 13.03% | 11.50% | 4.9Y | 1 |
| TAPIR CONSTRUCTIONS INE00DJ07052 | A- | 13.02% | 12.50% | 3.9Y | 2 |
| SATIN CREDITCARE NETWORK LIMITED 2031 INE836B08319 | A | 12.80% | 12.00% | 5.2Y | 3 |
| Kanakadurga Finance Limited INE104W07229 | BBB | 12.80% | 11.55% | 1.6Y | 1 |
| MIDLAND MICROFIN INE884Q07798 | A- | 12.75% | 10.75% | 1.4Y | 2 |
| 11.75 Mangal Credit And Fincorp Limited 23 Sep 2028 INE545L07044 | BBB | 12.73% | 11.75% | 2.4Y | 2 |
| 12.00 Slice Small Finance Bank Limited 17 Dec 2031 INE09B308044 | BBB | 12.65% | 12.00% | 5.6Y | 2 |
| 12.06 Finstars Capital Limited 30 Aug 2029 INE08XA07045 | BBB- | 12.50% | 12.06% | 3.3Y | 1 |
| 12.90 Mangal Credit And Fincorp Limited 03 Oct 2027 INE545L07036 | BBB | 12.50% | 12.90% | 1.4Y | 1 |
| Satin Creditcare Network Limited INE836B08327 | A | 12.50% | 12.00% | 5.4Y | 1 |
| 11.65 Ugro Capital Limited 15 Mar 2031 INE583D08081 | A+ | 12.47% | 11.65% | 4.9Y | 3 |
| 12.06 Finstars Capital Limited 30 Aug 2027 INE08XA07037 | BBB- | 12.40% | 12.06% | 1.3Y | 1 |
| UGRO Capital Limited INE583D08115 | A+ | 12.40% | 11.65% | 5.0Y | 1 |
| SATIN FINSERV LIMITED INE03K307140 | A- | 12.35% | — | — | 1 |
| Kanakadurga Finance Limited INE104W07245 | BBB | 12.30% | 11.60% | 1.7Y | 1 |
| Akme Fintrade (India) Limited INE916Y07081 | A | 12.29% | 11.25% | 3.0Y | 1 |
| Kanakadurga Finance Limited INE104W07260 | BBB | 12.24% | 11.00% | 1.2Y | 1 |
| Mufin Green Finance Limited INE08KJ07175 | A- | 12.20% | 11.00% | 1.3Y | 2 |
| MUFIN GREEN FINANCE LIMITED INE08KJ07183 | A- | 12.20% | 10.00% | 1.0Y | 1 |
| Moneyboxx Finance Limited INE296Q07142 | BBB | 12.06% | 10.25% | 1.5Y | 2 |
| MONEYBOXX FINANCE LIMITED INE296Q07159 | BBB | 12.06% | 10.20% | 1.6Y | 1 |
| 12.06 Finstars Capital Limited 13 10 2027 INE08XA07029 | BBB- | 12.00% | 12.06% | 1.5Y | 2 |
| Indel Money Limited INE0BUS07CI4 | A | 12.00% | 11.75% | 4.7Y | 1 |
| Akme Fintrade (India) Limited INE916Y07073 | BBB+ | 12.00% | 11.50% | 2.7Y | 1 |
| NUVAMA WEALTH FINANCE LIMITED INE918K07QN0 | AA | 12.00% | — | 3.3Y | 1 |
| Indel Money Limited INE0BUS07CJ2 | A- | 11.95% | 11.00% | 2.7Y | 1 |
| Satin Finserv Limited INE03K307124 | A- | 11.92% | 10.75% | 1.9Y | 2 |
| UNIGOLD FINANCE INE0O7U07046 | BBB | 11.85% | 11.00% | 1.9Y | 1 |
| Finnable Credit Private Limited INE14H407116 | BBB+ | 11.85% | 11.00% | 2.3Y | 3 |
| INDEL MONEY INE0BUS07CL8 | A- | 11.80% | 10.50% | 3.0Y | 1 |
| Spandana Sphoorty Financial Limited INE572J07711 | BBB+ | 11.80% | 10.59% | 2M | 2 |
| B.N. AGRITECH LIMITED INE00XL07015 | A | 11.77% | 9.75% | 2.6Y | 1 |
Frequently Asked Questions
Are tax-free bonds still available in India?
No new tax-free bonds have been issued since 2015-16. However, existing tax-free bonds are actively traded in the secondary market on NSE and BSE. You can buy them through stock brokers or online bond platforms. The availability and pricing depend on market demand.
Who should invest in tax-free bonds?
Tax-free bonds are most beneficial for investors in the highest tax bracket (30%+). For someone in the 30% bracket, a 5% tax-free yield equals about 7.14% pre-tax. For someone in the 20% bracket, the equivalent is 6.25%. If you are in a lower bracket, regular bonds or FDs may offer better post-tax returns.
What is the typical tenure of tax-free bonds?
Tax-free bonds were originally issued with tenures of 10, 15, or 20 years. Since they were issued between 2011-2016, remaining maturities range from roughly 0-10 years in the secondary market. Interest is paid annually.
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Data is for informational purposes only. BondDekho is not SEBI-registered and does not provide investment advice. Bond yields and ratings are subject to change. Verify details on respective platforms before investing. Sorted by Yield to Maturity. Not a recommendation.