Interest rates on capital gain bonds have increased to 5.25%.
By rrfinance at 2023-04-26 07:44:19
New Delhi, Delhi 110001, India
2 replies
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Capital gain bonds are a type of investment instrument that is issued by the government of India. These bonds are designed to provide investors with a means of saving money while also reducing their tax liability. Capital gain bonds are typically issued by companies that are involved in infrastructure development, such as the National Highways Authority of India (NHAI) and Rural Electrification Corporation (REC).
Recently, the government of India has increased the interest rate on capital gain bonds to 5.25%. This is good news for investors who are looking for a safe and secure way to invest their money while also reducing their tax liability. The new interest rate is effective from 1st April 2023.
One of the key benefits of investing in capital gain bonds is that the interest earned on these bonds is tax-free. This means that investors can earn a higher return on their investment without having to worry about paying taxes on the interest earned. Additionally, capital gain bonds have a lock-in period of five years, which means that investors cannot withdraw their money before the end of this period.
The increased interest rate on capital gain bonds makes them an attractive investment option for those who are looking for a low-risk investment instrument that also offers tax benefits. With the new interest rate, investors can earn a higher return on their investment while also reducing their tax liability.
Investing in capital gain bonds is also a good way to support infrastructure development in India. These bonds are typically issued by companies that are involved in infrastructure development projects, such as building highways, bridges, and power plants. By investing in these bonds, investors are indirectly contributing to the development of the country's infrastructure.
In conclusion, the recent increase in interest rates on capital gain bonds to 5.25% makes them an attractive investment option for investors who are looking for a low-risk investment instrument that also offers tax benefits. These bonds are also a good way to support infrastructure development in India. However, investors should always do their due diligence before investing in any financial instrument.
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