Tax Saving Plans New Tax Free Bonds 2015-16: Features & BeneftsTax Free Bond is one o t!e "o"ular invest#ent o"tion to earn a tax ree return$ %n %ndia& we !ave ver' ew invest#ent o"tions o(ering tax-ree returns$ Pu)li* "rovident unds +PPF,& Su-an'a Sa#ridd!i S*!e#e +SS., and Tax ree )onds are invest#ent o"tions t!at o(er tax-ree return$ .ll ot!er invest#ent instru#ents in*luding fxed de"osits& NS/s& 0%S et*$& attra*t tax on interest in*o#e$.ter a wait o one 'ear& Tax ree )onds are a)out to !it t!e #ar-et again$ Finan*e 0inistr' !as given t!e #andate to t!e seven *o#"anies in*luding N1.%& %ndian 2ailwa's to raise und via New Tax-Free Bonds in t!e fnan*ial 'ear 2015-16$ T!e a#ount allo*ated or tax-ree )onds t!is fnan*ial 'ear is 30&000 *rore$ T!ese unds are ex"e*ted to o(er interest rate in t!e range o 4$5-4$56$ T!e #aturit' "eriod o t!ese unds will )e 10-15-20 'ears$New Tax-Free Bonds 2015-16.s dis*ussed a)ove govern#ent !as given "er#ission to seven di(erent entities to sell tax-ree )onds to raise *a"ital o 30&000 *rores$ T!is und will )e used or inrastru*ture-related "ro8e*ts$ 9ist o New Tax ree )onds or F: 2015-16 and allo*ation details are given )elow$;!at is Tax Free Bonds,$ %ssuer or )orrower is )ound to "a' fxed rate o interest +*ou"on rate, against t!is )ond till t!e #aturit'$ %nterest in*o#e earned ro# tax ree )ond is exe#"ted ro# taxation u?s 10 o t!e %n*o#e Tax .*t& 1@61$Tax ree vs Tax SavingPeo"le oten get *onused and )etween Tax ree and Tax Saving Plans ter#inolog'$ .lt!oug! )ot! t!ese ter#inolog' sounds si#ilar t!ere is a !uge di(eren*e )etween t!ese two$Tax Saving A Tax-saving instru#ent #eans an invest#ent t!at saves 'our tax$ T!ere is *ertain "rovision #ade in %n*o#e tax t!at allows t!e tax "a'er to save tax )' investing in so#e tax saving instru#ents li-e B9SS& Tax saving Fixed Ce"osit& 9ie %nsuran*e "re#iu#& PPF et*$ .n investor *an *lai# tax )eneft )' investing under t!is instru#ent under se*tion D0/$Tax Free A Tax Free instru#ent #eans #one' earned ro# t!is invest#ent is tax ee$ No tax is a""li*a)le on t!is in*o#e$ T!is in*o#e is not in*luded w!ile *al*ulating tax on total in*o#e$ .n exa#"le o tax ree invest#ent instru#ents is PPF& Su-an'a Sa#ridd!i S*!e#e and Tax Free Bonds$;!o *an invest in TaxFree Bond