The CBDT vide Notification No. 19/2025 dated March 11, 2025, specifies a zero coupon bond issued by Power Finance Corporation Ltd. named “Ten Year Zero Coupon Bond.” It has a life of ten years and one month, to be issued by March 31, 2027. Each bond matures at Rs.1,00,000 with a discount of Rs. 49,546. A total of ten lakh bonds will be issued.
In exercise of the powers conferred by clause (48) of section 2 of the Income-tax Act, 1961 (43 of 1961), read with clause (ii), clause (iii) and clause (v) of sub-rule (3) and sub-rule (6) of rule 8B of the Income-tax Rules, 1962, the Central Government hereby specifies the bond with the following particulars as zero coupon bond for the purposes of the said clause (48) of section 2 of the said Act, namely:-
| (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 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 |
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2025/03/CBDT-_-Income-Tax-_-11.03.2025.pdf
