Question: is interest on irfc bonds taxable?
Answer: Some of the public undertakings which raise funds through the issue of tax-free bonds are IRFC, PFC, NHAI, HUDCO, REC, NTPC, and Indian Renewable Energy Development Agency. ... Tax status: The interest income earned is exempt from tax under Section 10 (15) (iv) (h) of the Income Tax Act, 1961.