Income Tax

CBDT notifies 10 Year Zero Coupon Bond of Power Finance Corporation Ltd

CBDT notifies 10 Year Zero Coupon Bond of Power Finance Corporation Ltd.

Clause (48) of section 2 of the Income-tax Act,1961 authorises the Central Government to notify a Zero Coupon Bond. Further Rule 8B of Income Tax Rules lays down Guidelines for notification of zero coupon bond.

The Ministry of Finance, CBDT has vide Notification No. 19/2025 dated 11.03.2025 notified the following bond as zero coupon bond for the purposes of the said clause (48) of section 2 of the said Act

(a) Name of the Bond Ten Year Zero Coupon Bond of Power Finance Corporation Ltd.
(b) period of life of the bond Ten years one month
(c) the time schedule of the issue of the bond To be issued on or before the 31st day of March, 2027
(d) the amount to be paid on maturity or the redemption of the bond Rs.1,00,000/- for each bond
(e) the discount Rs. 49,546/- per bond
(f) the number of bonds to be issued Ten Lakhs

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