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Deep discount bond vs zero coupon bond

Ankit (C.A.-Student)     07 March 2013

 22 likes  675 points

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I have asked this query under EXPERT section but no reply came, thats why i have to post it here



What is difference between DDB and ZCB?????

 difference of issue price and maturity/face value of these bonds are Discount, which is expense for issuer and income for investor.

My next query is taxability/treatment of

Discount, an expense for issuer

is settled u/s 36(1)(iiia) in case of ZCB, but i dont know the treatment of discount in case of DDB

Kindly help

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