Bonds

Bond refers to a security issued by a company, financial institution or government, which offers regular or fixed payment of interest in return for borrowed money for a certain period of time.

Tax Saving Bonds:

Capital Gain Bonds with tax benefits under Sec 54EC of Income Tax Act. The schemes currently available in the market that offers tax benefits under Sec 54EC are:

• Investment in Bonds of National Highway Authority of India (NHAI)
• Investment in Bonds of Rural Electrification Corporation (REC)
• Investment in Infrastructure Bonds which offer tax benefits under Section 80C of Income Tax Act, 1961