If you are not in higher tax slab of 20% or more<\/li>\n<\/ol>\nHUDCO Tax Free Bonds –\u00a0Who should apply?<\/h3>\n
As for most tax free bonds,\u00a0these are good for investors in high income tax bracket of 20% and 30%.<\/strong>\u00a0Today the maximum rate offered by bank fixed deposit is 9.5%. This translates into a post tax return of 7.82% for 20% tax slab and 6.8% for 30% tax slab. This is lower than HUDCO\u2019s 10-year and 15-year tax free bonds.<\/p>\nAlong with the above, it suits investors who want regular income from interest payment and have low risk profile.<\/p>\n
Also its widely speculated that RBI would lower interest rates very soon, and if it happens this would be last issue this year to offer tax free interest rate of more than 8%. So in case you plan to invest in any tax free bond, HUDCO might be a good pick.<\/p>\n
About HUDCO:<\/h3>\n
Housing & Urban Development Corporation Ltd. (HUDCO) is a public sector company fully owned by Govt. of India for financing of housing and urban infrastructure activities in India. HUDCO was incorporated on April 25, 1970.<\/p>\n
HUDCO Tax Free Bonds – Jan 2013 Advertisement:<\/h3>\n