Includes Bonds of Central / State Government Guaranteed, PSU , PFI, Private etc
Less risky instrument
Available in tenure starting from 1 year to Perpetual
Tax free Bonds –Suitable for person coming under higher tax bracket (20% & 30% )
Capital Gain Bonds (54 EC Bonds)- Assesses have the option of not paying any long-term capital gains tax by investing the profit capital gains bonds with a stipulated time period. Capital gains bonds are issued by specified institutions and tax benefits are available under Section 54EC of the Income Tax Act.