Are IRFC bonds tax free?

IRFC N1 series The bonds are rated AAA and offer tax free income to investors. IRFC is a government owned entity and hence there are no worries on the safety of the instrument. It is important to note that the current market price of the bonds are Rs 1,053, as against the issue price of Rs 1,000.

Is IRFC a monopoly?

It enjoys ‘monopoly’ in the sector IRFC works as the dedicated market borrowing arm for the Indian Railways and has played a strategic role in financing the operations of the Indian Railways.

Can IRFC be a multibagger?

It won’t be a big multibagger for sure. But it is a very safe stock that will surely give much better returns than any Mutual funds. Could expect good dividend and I personally expect it to double in 3-4 years from here. You can keep Rail Vikas as benchmark for it.

Is interest on tax free bonds taxable?

According to the Income Tax Act, 1961, the interest on tax free bonds are non-taxable. This means that you will not have to pay any tax on the income earned from tax free bonds in addition to capital protection and fixed annual income.

Will IRFC grow?

Indian Railway Finance Corporation (IRFC) reported a 15 per cent increase in net profit for the third quarter ended December 31. For the nine months period ended December 31, IRFC reported a 15.65 per cent increase in net profit. IRFC is trading at a price of INR 23.90. This is a dividend-paying company.

Is IRFC good for long term?

All the Railway related stocks are looking very positive but ideally my suggestion to you would be to look at a portfolio that is more broad-based and diversified keeping Railways as your central theme. For example, you can surely accumulate IRFC as a good play on the financing business for Indian railways.

What is PFC tax free bonds?

Power Finance Corporation Limited (PFC) will open its public issue of Tax Free Secured Redeemable Non Convertible debentures of face-value of INR 1,000 each having tax benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961, as amended for an amount aggregating upto INR 3,875.90 Crores (the Shelf Limit).

What are tax free bonds in India?

Tax-free bonds are issued by a government enterprise to raise funds for a particular purpose. One example of these bonds is the municipal bonds issued by municipal corporations. They offer a fixed interest rate and rarely default, hence are a low-risk investment avenue.

Is IRFC good for long-term?

Will IRFC pay dividends?

Indian Railway Finance Corporation Ltd. For the year ending March 2022 Indian Railway Finance Corporation has declared an equity dividend of 14.00% amounting to Rs 1.4 per share. At the current share price of Rs 21.25 this results in a dividend yield of 6.59%.