Investments with tax free returns | Fusion - WeRIndia

Many traditional investments in India like the fixed deposit put the pressure of paying taxes on you. Basically, you will have to pay income tax on the returns you get out of these investments. However, there are some investments in our country for which you need not pay income tax. Here are some of them.

Tax free bonds

Once in a while, government owned companies come out with a tax free bond. This year, many government companies which can raise money through tax free bonds were announced. Companies like National Highways Authority of India plan to raise Rs.24,000 crores, Indian Railways Finance Corporation plans to raise Rs.6000 and HUDCO plans to raise Rs.5000 crores.

Unit Linked Insurance Plan (ULIP)

This is a combination of insurance and investment. The idea is to put part of your money as insurance and the remaining as investment in stock markets. The interest on this is not taxed. The amount you invest is also not taxable. However, they can be slightly risky if you chose investments in stock market related instruments.

Public Provident Fund

The interest from PPF is not taxable. The amount you invest in PPF is also not taxable just like with ULIPs. You can invest up to Rs.1.5 lakh in this and save yourself from tax.

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