How do I but last year’s Tax Free Bonds ?

POSTED BY Dominic Prakash ON October 24, 2012 1:08 pm COMMENTS (6)

I was told that there are couple of Tax Free Bonds are coming up in October’12. Oct is almost passed and any idea about these bonds?

I have ICICIdirect demat account. How do I but last year’s Tax Free Bonds (NHAI/IRFC etc)

6 replies on this article “How do I but last year’s Tax Free Bonds ?”

  1. ramadevi.s says:

    I wish to buy tax free bonds in the secondary market. Which is the best option? I want to buy for about 5.00 lacs. Should we just buy in the secondary market or can I approach ICICI direct separately for this?

    1. Buying from ICICIdirect means buying from secondary market only !

  2. Dear Dominic, hope you got the answer of your query by now.



  3. Bhushan says:

    Yes, Dominic, Interest is tax-free in these tax free bonds. You are right that in the last two months there have been talks of new bonds coming in October/november, but nothing has materialized so far. Unless that change at the top in Finance ministry has changed the plan, we should see many bonds coming soon.
    You can also buy current tax free bonds in ICICIDirect. You will see them in the “NCD list” link (In the same page where you see all your shares (demat allocation), you will see this link as one of the 30 odd links that are shown in the middle of the page). In this page, along with tax free bonds, you see many corporate bonds as well as Infrastructure bonds. So, be careful. Tax free bonds are listed with current price anywhere from 1050 to 1100. They carry coupon rates (interest rates) of 8% to 8.4%.

  4. Dominic Prakash says:

    Just to clarify I am NOT talking about infrastructure bonds.

    NHAI: http://localhost/jagoforum2/nhai-bonds-vs-fixed-deposit/2440/

    IRFC: http://localhost/jagoforum2/irfc-tax-free-bonds/2665/

    Are you saying that interest from these bonds are taxable?

  5. Tax free bonds means the interest is non taxable ? WHo told you ?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.