The Ministry of Finance has specified the “Ten Year Zero Coupon Bond of Power Finance Corporation Ltd.” as a zero coupon bond under clause (48) of section 2 of the Income-tax Act, 1961. The bond has a life period of ten years and one month and will be issued on or before March 31, 2027. The maturity or redemption amount is set at Rs. 1,00,000 per bond, with a discount of Rs. 49,546 per bond. Ten lakh bonds will be issued. This specification is made under the powers conferred by the Income-tax Act, 1961, and the Income-tax Rules, 1962.
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
Notification No. 19/2025 – Income Tax | Dated: 11th March, 2025
S.O. 1120(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 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 |
[Notification No. 19 /2025 F.No. 300164/1/2024-ITA-1]
ASHWANI KUMAR, Under Secy.
