Inflation Indexed Bonds- No Tax Exemption
As we all know that by investing in bonds we get exemption but Reserve Bank of India has cleared that there will be no special tax exemption for inflation indexed bonds.
The Finance Minister P.Chidambaram , announced that RBI would launch inflation indexed bonds to help public hedge themselves against price increases at a time real interest rates are still negative, hence crimping their savings.
But do these indexed bonds are really protecting our savings?
Firstly, from last six months inflation is easing so time is clearly favoring government.
Under the scheme, the principal amount of these 10-year bonds will be adjusted against […] Read more