I feel its not worth the pain. Even if we take 30% income tax slab, difference in the end will be hardly 1-1.5% compared to FD. Am I missing something?--EditAfter searching for sometime I could decide on itIf I invest Rs. 20000 in Infrastructure bond after 10 years I will get Rs. 47347 (9 % cumulative, pre-tax)If I don't invest, I need to pay tax of Rs.4000 (assuming 20% tax slab) and invest remaining Rs. 16000. To get Rs. 47347 after 10 years, my investment should give returns @ 11.5%So, finally I decide to buy these bonds.