Hi Folks,
I have one query regarding the tax free bonds. Are the interests earned on the bonds are tax free or taxable. For example , if I invest 2 lakhs with an interest of 10% , that roughly comes around 20,000 per year. Is this interest of 20,000 is completely tax free or it will be taxable and what rate ? Whether it makes sense to invest in bank FD or tax free bonds ?
Please help to clarify the above queries. Thanks in advance for your suggestions/advice and your time.
Thanks
Josh