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Post-Tax Yield Calculator

See your bond’s actual after-tax return across every Indian income tax slab. Coupon income is always taxed at slab rate; capital gains depend on holding period.

Pre-tax yield to maturity of the bond. Say below which basis it is on.
Annual coupon. With the YTM it sets the price, and so the gain or loss at maturity.
How often the bond pays its coupon, from the term sheet
NCD prospectuses state an annualised effective yield: a monthly 10% coupon at par shows as 10.47%. Pick the second option for that figure.
Treated as held to maturity. Listed and held over 12 months: gain at 12.5% + cess.
Unlisted bonds: any gain is taxed at slab (section 50AA, redeemed after 23 July 2024)
Only select for bonds explicitly issued as tax-free under Section 10(15)
Calculating…

How post-tax yield works

A bond’s gross YTM assumes no taxes. In reality:

  • Coupon income is taxed at your income slab rate every year (TDS at 10% may be deducted at source for NCDs).
  • Capital gains (if you sell before maturity or buy below face value) are taxed at your slab rate if short-term, or at 12.5% if long-term (post Budget 2024 — no indexation).
  • Tax-free bonds (specific NHAI/REC/IRFC issuances from 2012–16) have tax-exempt coupon income, making their effective yield higher for high-bracket investors.

This calculator models a bond paying coupons at the frequency you choose and maturing at the end of your holding period, priced to your gross YTM, and solves the yield of its after-tax cashflows on the same basis as the YTM you entered. A capital loss is given no tax benefit. For a specific bond's dates and price, use the YTM calculator. Simplified; not tax advice; verify with a tax adviser.

Tax rules reflect FY 2026-27 provisions as understood (last reviewed July 2026). Tax law changes; verify with a CA for your situation. Not investment or tax advice.