NTPC – Tax Free Bonds

September 20, 2015   ·   0 Comments

How to invest in NTPC ?


  • Interest from these Bonds do not form part of total income as per provisions of Section 10 (15) (iv) (h) of Income Tax Act, 1961 read along with Section 14A (1) of the Income Tax Act.
  • Since the interest income on the Bonds is exempt, no tax deduction at source (“TDS”) is required. However interest on application money would be liable for TDS as well as would be subject to tax as per present tax laws.
  • Wealth tax has been abolished w.e.f. financial year 2015-16 i.e. assessment year 2016-17.


  •  NTPC Limited (NTPC) is a Government company, which was conferred „Navaratna‟ status by the Government of India in 1997 and upgraded to „Maharatna‟ status in 2010.
  • NTPC is the largest power producer in India in terms of both installed capacity and generation, with aggregate installed capacity of 44,398 MW representing market share of 18.77% of India‟s total installed capacity excluding renewable energy as on March 31, 2015, and having generated 260.58 billion units of power, representing market share of 24.95% of India‟s total power generation in fiscal 2015.
  • While NTPC‟s core business is the generation and sale of electricity in India, the company is a diversified and integrated player in the power sector, as NTPC is also engaged in various other complementary businesses, seeking to support its core business and leverage its technical and operational skills as well as client and knowledge base in India and abroad.




Recommendation: We would gives a thumbs up to NTPC – Tax free bonds as they are rated AAA by credit agencies and formulate almost 11% returns for people who come in higher tax bracket. One needs to take a view that most of the people after 10 years would come in upper bracket especially who are working in private organisation.

We would update the post and attach the form for download by tomorrow.

You can get in touch with us  if you would like to invest in NTPC – tax free bonds.

Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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