CBDT notifies Ten Year Zero Coupon Bond of REC Ltd. under Section 2(48) of Income tax Act, 1961 Vide Notification No. 56/2023-Income Tax Dated: 1st August, 2023
The Ministry of Finance has issued Notification No. 56/2023 under the Income Tax Act, 1961, specifying the details of a zero coupon bond issued by REC Ltd. The notification designates the Ten Year Zero Coupon Bond of REC Ltd. with specific terms and conditions as a zero coupon bond under clause (48) of section 2 of the Income Tax Act, 1961. The bond has a ten-year one-month life period and is to be issued on or before 31st March 2025. The maturity amount for each bond is 1 lakh rupees, and the total discount is Rs. 2517.85 crores. The issuance will consist of five lakhs bonds. Understanding the details of the zero coupon bond as per Notification No. 56/2023 is essential for investors and stakeholders. The notification clarifies the bond’s tax treatment and other relevant aspects for compliance with the Income Tax Act, 1961.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 56/2023-Income Tax | Dated: 1st August, 2023
S.O. 3440(E).—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 REC Ltd. |
|---|---|
| (b) Period of Life of Bond | Ten years one month |
| (c) Time Schedule of the Issue | To be issued on or before the 31st day of March 2025 |
| (d) Amount to be paid on Maturity/Redemption | 1 lakh rupees for each bond |
| (e) Discount | Rs. 2517.85 crores |
| (f) Number of Bonds to be Issued | Five lakhs |
[Notification No. 56/2023/F. No.164/1/2023-ITA-1]
VIKAS SINGH, Director
