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Date: 11-Mar-2025 Category: Extra Ordinary State: Union Government Country: India

Notification u/s 2(48) of the Income Tax Act, 1961 in the case of Zero Coupon Bond of Power Finance Corporation Ltd

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

What it means

  • The notification specifies a bond as a zero coupon bond for the purposes of clause (48) of section 2 of the Income-tax Act, 1961.

Key Changes

  • The bond being specified is the 'Ten Year Zero Coupon Bond of Power Finance Corporation Ltd.'
  • The bond's period of life is ten years and one month.
  • The bond is to be issued on or before March 31, 2027.
  • The amount to be paid on maturity or redemption of the bond is Rs. 1,00,000 per bond.
  • The discount is Rs. 49,546 per bond.
  • The number of bonds to be issued is ten lakhs.

Impact Analysis

Power Finance Corporation Ltd.

  • Action: Power Finance Corporation Ltd. should finalize the issuance plan before March 31, 2027.

Investors

  • Consideration: Investors can potentially avail tax benefits as per the Income-tax Act, 1961, subject to applicable provisions.

Government (Central Board of Direct Taxes)

  • Action: Update relevant records and systems to reflect the specification of these bonds as zero-coupon bonds.

Key Entities Referenced

Central Board of Direct Taxes (CBDT): The issuer of the notification, responsible for matters related to direct taxes. Power Finance Corporation Ltd.: The entity issuing the Ten Year Zero Coupon Bond. Income-tax Act, 1961: The primary legislation governing income tax in India. Section 2(48) defines zero coupon bond. Income-tax Rules, 1962: The rules framed under the Income-tax Act, 1961. Rule 8B provides the method of determining the value of perquisite.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-11032025-261549 CG-DxLx-xEG-I1D1H0x3x2x0 25-261549 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.ं 1111] नई दिल्ली, मगं लिार, माच ड11, 2025/फाल्ग नु 20, 1946 No. 1111] NEW DELHI, TUESDAY, MARCH 11, 2025/PHALGUNA 20, 1946 जित्त मत्रं ालय (रािस्ट्ि जिभाग) (केन्द्रीय प्रत्यक्ष कर बोडड) अजधसचू ना नई दिल्ली, 11 माचड, 2025 (आयकर) का.आ. 1120(अ).—आयकर जनयमािली, 1962 के जनयम 8ख के उप-जनयम (3) तथा उप-जनयम (6) के खंड (ii), खंड (iii) और खंड (v) के साथ पठित, आयकर अजधजनयम, 1961 (1961 का 43) की धारा 2 के खडं (48) द्वारा प्रित्त िजियों का प्रयोग करते हुए, केन्द्र सरकार उि अजधजनयम की धारा 2 के उि खंड (48) के प्रयोिनों के जलए बंधपत्र (बॉन्द्ड) को जनम् नजलजखत जििरणों के साथ िून्द्य कूपन बंधपत्र के रूप में जिजनर्िष्टड करती ह,ै अथाडत:— (क) बंधपत्र का नाम - पािर फाइनेंस कॉरपोरेिन जलजमटेड का िस िर्षीय िून्द्य कूपन बंधपत्र (ख) बंधपत्र की िीिन अिजध - िस िर्षड एक माह (ग) बंधपत्र िारी करने की समय-सारणी - 31 माच,ड 2027 को या उससे पहल े िारी दकया िाएगा 1653 GI/2025 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)] (घ) पठरपक्वता या बंधपत्र के मोचन पर - प्रत्येक बंधपत्र के जलए 1,00,000/ रुपय े भुगतान की िाने िाली राजि (ङ) छूट - रु. 49,546/- प्रजत बंधपत्र (च) िारी दकय े िान े िाले बंधपत्रों की संख्या - िस लाख [अजधसूचना स.ं 19 /2025 फा.स.ं 300164/1/2024-आईटीए-1] अश् िनी कुमार, अिर सजचि MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 11th March, 2025 (Income Tax) 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 - Rs.1,00,000/- for each bond or redemption of the 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. 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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