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Interest earned on new infrastructure bonds is tax-free in your hands.
Till last year, we had infrastructure bonds that entailed tax benefits. Investments up to Rs 20,000 in them were deductable under your taxable income. This year's budget abolished that. Now you have infrastructure bonds that are periodically issued by companies as and when they need money. The returns that you earn from these new bonds will be entirely tax-free in your hands. This is a new concession that has been introduced in this year's budget.
Happy Investing!!
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