Super-rich Indians are rushing to buy tax-free bonds, which offer an effective double-digit return in the proposed new tax regime, at a time when uncertainty has gripped the stock market. While there aren’t any fresh issues of tax-free bonds, those issued during 2011-2015 by the National Highway Authority of India, RECNSE -0.13 %, Power Finance Corp and HudcoNSE 1.85 % and other state-run firms with tenures of 10, 15 and 20 years are available for purchase on the secondary marke .. These bonds currently yield 5.5- 5.9 per cent, compared with 6.1-6.5 per cent a month ago. What makes these attractive to the ultra high-net-worth individuals is that the returns are tax free — that is an enticement for those who are taxed at as high as 42.74 per cent as per the new tax proposals. If the tax benefit is accounted for, the “return for the highest tax-bracket investor will be more than 10 per cent, making for an attractive investment opportunity”, said Vikram Dalal, MD, Synergee Capital.