State-run tax-free bonds!

State-run Infrastructure Finance Companies like REC, HUDCO, IRFC etc issued tax-free bonds between 2012 to 2016 period. These bonds were listed on NSE & BSE. Investors can buy these bonds in the secondary market. These bonds pay interest annually which is tax-free. Investors should select bonds with higher liquidity (more volumes) and higher YTM which match their investment time horizon.