Feedback Message Board

This tax free bonds means your interest income is totally tax free. You do not get any rebate on investment in such bonds. Thus an interest rate of around 7.5% on such bonds means interest income under taxable scenario of around 10.7%. If one consider interest rate that are prevalent, then you get 9 to 10% on FDs that is taxable and the net in one''s hand (post 30% IT slab) comes to 7% or lower.