MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 17th April, 2025
(INCOME TAX)
The Central Government has specified the “Ten Year Zero Coupon Bond” issued by the Housing and Urban Development Corporation Ltd. as a zero coupon bond under the Income-tax Act, 1961. Key details include:
- Period of Life: Ten years, one month.
- Issue Date: On or before March 31, 2027.
- Maturity Amount: Rs. 5,000 crores.
- Discount: Rs. 2,351.49 crores.
- Number of Bonds: Five lakhs.
The proceeds from these bonds are to be used exclusively for infrastructure projects that do not rely on State Governments for debt service. The notification clarifies that “infrastructure” encompasses all defined sub-sectors and any relevant amendments.
[Notification No. 34 /2025/F. No. 300164/2/2024-ITA-I]
ASHWANI KUMAR, Under Secy.