Govt. notified ten year Deep Discount Bond of REC the purpose of section 2 (48) the Income Tax Act

The Central Government have approved notification of ten year Deep Discount Bond (Zero Coupon Bond) of Rural Electrification Corporation Limited (REC) to be issued by 31st March 2011 as specified bonds for the purpose of sub-section 48 of section 2 of the Income Tax Act, 1961. The number of bonds approved for issue are 25,00,000 with maturity value of Rs.30,000 each having life period of 10 years. Income from such bonds will be taxed as capital gain only on transfer or redemption or maturity.

See Relevant Circular at following Link:-

Income Tax Notification 24/2010 – Section 2(48) of the Income-tax Act, 1961 – Zero Coupon Bond Specified bond