Frequently Asked Questions

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Are there tax-free PSU bonds?


Yes, many government-controlled PSUs in India offer tax-free bonds. The capital gains from these bonds are not subjected to tax as per India’s IT Act. These bonds come with a tenure of 10 to 20 years. They can be traded in the secondary market. The credit ratings are generally high. Infrastructure bonds, housing bonds, railway bonds, and public sector unit bonds are some of its categories.