Tax-free bonds on Zerodha

Mon, 11 May 2026 00:00:00 +0000

Tax-free bonds are a category of bonds whose interest income is exempt from income tax under Section 10(15)(iv)(h) of the Income Tax Act, 1961. They are issued by government-backed entities (primarily Public Sector Undertakings) as notified by the Ministry of Finance under specific budget allocations. Zerodha does not facilitate primary issuance of tax-free bonds, but investors can buy and sell previously issued tax-free bonds in the secondary market through Kite on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Section 10(15) on WebNotes

Tax-free bonds on Zerodha