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Date: 01-Aug-2023 Category: Extra Ordinary State: Union Government Country: India

Notification of zero coupon bond under clause (48) of section 2 of Income tax Act, 1961

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

What it means

  • The notification specifies the 'Ten Year Zero Coupon Bond of REC Ltd.' as a zero coupon bond as per clause (48) of Section 2 of the Income-tax Act, 1961.

Key Changes

  • Bond Name: Ten Year Zero Coupon Bond of REC Ltd.
  • Bond Life: Ten years and one month.
  • Issue Timeline: To be issued on or before March 31, 2025.
  • Maturity Value: 1 lakh rupees per bond.
  • Total Discount: Rs. 2517.85 crores.
  • Number of Bonds: Five lakhs.

Impact Analysis

REC Ltd.

  • Action Item: REC Ltd. should ensure compliance with the specified timelines and conditions for issuing the bonds.

Investors

  • Action Item: Investors should consult with tax advisors to understand the specific tax implications of investing in these bonds.

Government (Central Board of Direct Taxes)

  • Action Item: CBDT should monitor the issuance and redemption of these bonds to ensure compliance with the Income-tax Act and Rules.

Key Entities Referenced

Income-tax Act, 1961: The primary legislation governing income tax in India. Section 2(48) defines zero coupon bonds. Income-tax Rules, 1962: Rules framed under the Income-tax Act, 1961. Rule 8B provides further details on zero coupon bonds. Central Board of Direct Taxes (CBDT): A part of the Department of Revenue in the Ministry of Finance, responsible for the administration of direct taxes. REC Ltd.: Issuer of the specified zero coupon bonds.
Official Source Record View Original Source →
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-01082023-247756 xxxGIDHxxx CG-DL-E-01082023-247756 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (ii) PART II—Section 3—Sub-section (ii) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 3290] नई दिल्ली, मगं लिार, अगस्ट्त 1, 2023/श्रािण 10, 1945 No. 3290] NEW DELHI, TUESDAY, AUGUST 1, 2023/SHRAVANA 10, 1945 जित्त मत्रं ालय (रािस्ट्ि जिभाग) (केंद्रीय प्रत्यक्ष कर बोडड) अजधसचू ना नई दिल्ली, 1 अगस्ट्त, 2023 (आयकर) का.आ. 3440(अ).—आयकर जनयमािली, 1962 के जनयम 8ख के उप-जनयम (6) और उप-जनयम (3) के खडं (ii), खंड (iii), खडं (v) के साथ पठित आयकर अजधजनयम, 1961 (1961 का 43) की धारा 2 के खंड (48) द्वारा प्रित्त िजियों का प्रयोग करत े हुए, केंद्रीय सरकार उि अजधजनयम की धारा 2 के खंड (48) के प्रयोिनाथड जनम्नजलजखत जििरण के साथ इस बांड को िन्ू य कूपन बांड के रूप में जिजनर्िडष्ट करती ह,ै अथाडतः- (क) बांड का नाम - आरईसी जल. के िस िर्षीय िून्य कूपन बांड (ख) बांड की समयािजध - िस िर्ष ड एक माह (ग) बांड िारी करने की समय सारणी - 31 माचड, 2025 को या उसस ेपहल े िारी दकया िाना ह;ै (घ) बांड की पठरपक्वता या मोचन पर भुगतान - प्रत्येक बांड के जलए 1 लाख रुपए की िाने िाली राजि (ङ) छूट - 2517.85 करोड़ रुपए (च) िारी दकए िाने िाल ेबांड की संख्या - पांच लाख [अजधसूचना सं. 56/2023/फा. सं. 164/1/2023-आईटीए-I] जिकास ससंह, जनिेिक 4949 GI/2023 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 1st August, 2023 (INCOME TAX) 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 months (c) the time schedule of the issue - to be issued on or before the 31st day of March of bond 2025; (d) the amount to be paid on - 1 lakh rupees for each bond maturity or redemption of the bond (e) the discount - Rs. 2517.85 crores (f) the number of the bonds to - five lakhs be issued [Notification No. 56/2023/F. No.164/1/2023-ITA-1] VIKAS SINGH, Director Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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