Are taxable bonds safe?

They can be relatively safe depending on the issuer’s credit rating, but they are not risk-free.

Why do taxable bonds offer higher returns than tax-free bonds?

Because the interest is fully taxable, issuers typically offer higher rates to attract investors.

Can I sell taxable bonds before maturity?

Yes, if they are listed, they can be sold in the secondary market, subject to liquidity.

Who issues taxable bonds in India?

Corporates, NBFCs, banks, and government-backed entities issue taxable bonds.

List of Taxable Bonds in India 2026

Name: Taxable Bond
Brand: Bonds
Rating: 4.9 (14366 reviews)

Taxable bonds are one of the most straightforward ways to earn fixed income while taking exposure to a wide range of issuers across sectors. Unlike instruments that come with tax exemptions, these bonds focus purely on returns, where the interest earned is added to your overall income and taxed accordingly. As highlighted in the detailed list and structure provided , they are available in multiple forms secured, unsecured, listed, and unlisted offering flexibility in terms of tenure, yield, and risk. For investors, the key lies in balancing the relatively higher returns with the tax impact and choosing bonds that align with their financial goals and risk appetite.

What are Taxable Bonds?

Taxable bonds are fixed-income instruments where the interest earned is fully taxable as per the investor’s income tax slab. Unlike tax-free bonds, these do not offer any tax exemption on interest income. They are issued by corporates, banks, NBFCs, and government-backed entities to raise funds and typically offer regular interest payouts.

Key Features & Benefits of Taxable Bonds

Fixed Interest Income: Investors receive regular and predictable interest payouts (monthly, quarterly, or annually).

Wide Availability: Issued by various entities such as corporates, NBFCs, and financial institutions across sectors.

Higher Yield Potential: Taxable bonds often offer higher interest rates compared to tax-free bonds to compensate for tax liability.

Variety of Options: Available in different credit ratings, tenures, and structures to suit diverse investment needs.

Listed and Unlisted Options: Some taxable bonds are listed on exchanges, allowing buying and selling in the secondary market.

Portfolio Diversification: They help balance risk by adding fixed-income exposure alongside equities or mutual funds.

Who Should Invest in Taxable Bonds?

Income-Seeking Investors: Suitable for individuals looking for regular interest income.

Moderate Risk Investors: Investors comfortable with varying credit ratings and issuer profiles.

Investors in Lower Tax Brackets: More suitable for those in lower tax slabs where tax impact is relatively less.

Portfolio Diversifiers: Those looking to diversify beyond traditional instruments like FDs.

Medium to Long-Term Investors: Ideal for investors who can stay invested for a fixed tenure.

List of Taxable Bonds in India

COMPANY	ISIN	NAME OF THE INSTRUMENT	DATE OF ALLOTMENT	COUPON RATE	CREDIT RATING
POWER FINANCE CORPORATION LIMITED	INE134E08AA6	9.90% Unsecured Redeemable , Non convertible , Non Cumulative Taxable bonds in the nature of debentures (2017) Series XXXIII B. Letter of Allotment Date of Maturity: 22/03/2017	22 March 2007	9.90%	AAA CRISIL RATINGS LIMITED DT 01-12-2013
NTPC LIMITED	INE733E07DZ8	8.785% Secured Non-Cumulative Non-Convertible Redeemable Taxable Bond. Series - XXXV - O. Date of Maturity 15/09/2030.	15 September 2010	8.79%	AAA ICRA LIMITED DT 22-04-2013
POWER FINANCE CORPORATION LIMITED	INE134E07BD0	5% SECURED REDEEMABLE NON CONVERTIBLE TAXABLE BONDS IN THE NATURE OF DEBENTURES. PFC CAPITAL GAIN TAX EXEMPTION BONDS SERIES V. DATE OF MATURITY 31/01/2027	31 January 2022	5%	AAA ICRA LIMITED DT 30-03-2021
NTPC LIMITED	INE733E07KL3	7.32% SECURED LISTED REDEEMABLE NON CONVERTIBLE TAXABLE BONDS IN THE NATURE OF DEBENTURES. LETTER OF ALLOTMENT SERIES 69. MATURITY DATE : 17/07/2029	17 July 2019	7.32%	AAA ICRA LIMITED DT 08-07-2019
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT	INE261F08BZ9	7.27% UNSECURED LISTED RATED REDEEMABLE TAXABLE NON CONVERTIBLE BONDS. LETTER OF ALLOTMENT. SERIES 20J. DATE OF MATURITY 14/02/2030	14 February 2020	7.27%	AAA INDIA RATING AND RESEARCH PVT. LTD DT 11-02-2020
POWER GRID CORPORATION OF INDIA LIMITED	INE752E07IX2	9.35% Secured Non-Convertible ,Non-Cumulative, Redeemable , Taxable Powergrid Bond. Series XXXVI- Issue 2011-12. Letter of Allotment. STRPP -L. Date of Maturity 29/08/2027	29 August 2011	9.35%	AAA ICRA LIMITED DT 19-05-2011
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT	INE261F08683	7.38% UNSECURED REDEEMABLE NON CONVERTIBLE TAXABLEE BONDS. SERIES LTIF 1A. DATE OF MATURITY 20/10/2031	20 October 2016	7.38%	AAA CRISIL RATINGS LIMITED DT 19-09-2016
POWER GRID CORPORATION OF INDIA LIMITED	INE752E07NH5	8.4% SECURED NON CONVERTIBLE NON CUMULATIVE REDEEMABLE TAXABLE POWER GRID BONDS LI-ISSUE 2015-16 STRPP-K LETTER OF ALLOTMENT.DATE OF MATURITY 14/09/2029	14 September 2015	8.40%	AAA CARE RATINGS LIMITED DT 24-08-2015
NTPC LIMITED	INE733E07EK8	8.8086% Secured Non-Cumulative Non-Convertible Redeemable Taxable Bond. (in the nature of Debentures) Series - XXXVI - K. Date of Maturity 15/12/2026.	15 December 2010	8.81%	AAA CARE RATINGS LIMITED DT 13-11-2013
RURAL ELECTRIFICATION CORPORATION LIMITED	INE020B08AP1	7.45% UNSECURED LISTED REDEEMABLE NON-CONVERTIBLE NON - CUMULATIVE TAXABLE BONDS. SERIES 155. DATE OF MATURITY 30/11/2022	30 November 2017	7.45%	AAA INDIA RATING AND RESEARCH PVT. LTD DT 27-11-2017

Risks Involved in Taxable Bonds

Credit Risk: The issuer may face difficulty in meeting interest or principal payments.

Interest Rate Risk: Bond prices may fall when market interest rates rise.

Liquidity Risk: Some bonds may not be actively traded, making early exit difficult.

Reinvestment Risk: Future interest rates may be lower when reinvesting coupon payments.

Inflation Risk: Fixed returns may lose purchasing power over time.

Tax Applicability on Taxable Bonds

Tax on Interest Income: Interest earned is taxed under “Income from Other Sources” as per your income tax slab.

Short-Term Capital Gains (STCG): Taxed as per slab if sold within 12 months (for listed bonds)

Long-Term Capital Gains (LTCG): Taxed at applicable rates after the holding period

TDS Applicability: TDS may be deducted depending on issuer policies and applicable thresholds.

How to Buy Taxable Bonds?

Through Demat Account (Secondary Market)

Log in to your trading account
Search using ISIN or bond name
Review price, yield, and rating
Place a buy order

Online Bond Platforms: Browse and invest in bonds digitally through regulated platforms.

Primary Issuances (NCDs/Bonds): Invest when companies issue new bonds.

Disclaimer

The taxable bond data on this page is sourced from the NSDL website and is based on publicly available market information as on 19 March 2026. Prices, yields, trade values, and other related details are subject to change in real time depending on market movements and liquidity. This content is intended solely for informational and educational purposes and should not be considered as investment advice, recommendation, or an offer to buy or sell any securities.

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