CBDT has issued Notification No. 48/2025 specifying a particular bond as a "zero coupon bond" for the purposes of clause (48) of section 2 of the Income-tax Act, 1961. This specification is made under the powers conferred by the said section, read with relevant rules of the Income-tax Rules, 1962. The bond specified is the Ten Year Zero Coupon Bond of Indian Railway Finance Corporation Ltd.
Key particulars of this bond, as outlined in the notification, include a period of life of ten years. The bond is scheduled to be issued on or before March 31, 2027. The total amount to be paid on maturity or redemption of the bond is Rs. 10,000 crores. The notification also specifies a total discount amount of Rs. 4,916.51 crores and the number of bonds to be issued as ten lakh. This official notification establishes the designated tax treatment for this specific financial instrument under Indian income tax law.
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