savings bonds wizard for windows 10 2018

You may purchase tax-free bonds in both, physical and the Demat form. However, it is advisable to declare your interest income as the principal amount invested in tax-free bonds do not qualify for a tax deduction under Section 80C. Also, the tax deducted at source (TDS) does not apply to these bonds. In the case of tax-free bonds, the interest income is entirely tax-exempt. Typically high net-worth (HNI) individuals, HUF members, trusts, co-operative banks, and qualified institutional investors prefer to invest in tax-free bonds. Tax-free bonds are the right choice for investors falling in the highest tax bracket. The government enterprises invest the money collected through the issuance of these bonds in infrastructure and housing projects. As government enterprises typically issue these bonds for a longer tenure, default risk is very low in these bonds and you are assured of a fixed income for a more extended period, typically ten years or more. Tax-free bonds are an excellent choice for investors looking for fixed income like senior citizens. The government invests the money collected from these bonds in infrastructure and housing projects. Tax-free bonds generally have a long-term maturity of ten years or more.

They offer a fixed interest rate and rarely default, hence are a low-risk investment avenue.Īs the name suggests, its most attractive feature is its absolute tax exemption on interest as per Section 10 of the Income Tax Act of India, 1961. One example of these bonds is the municipal bonds issued by municipal corporations. Tax-free bonds are issued by a government enterprise to raise funds for a particular purpose.

Savings bonds wizard for windows 10 2018