Bonds are units of corporate debt issued by companies and securitized as tradeable assets.A bond is referred to as a fixed-income instrument since bonds traditionally paid a fixed interest rate (coupon) to debtholders
a) Capital gains Bond
Capital gain bonds or 54EC bonds are the fixed income instruments that provide capital gains tax exemption under section 54EC to the investors. The tax liability on long-term capital gains from sale of immovable property can be reduced by purchasing 54EC bonds.
b) Sovereign Gold Bonds
SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.
c) RBI bonds:
These Bonds are issued by RBI (Reserve Bank of India) with interest rate of 7.75%(compounded/payable half-yearly). Individuals (single, joint or minor) and HUFs can invest in these Bonds, however, NRI's are not eligible to invest.
