regarding itr 2

TDS is not applicable on income or maturity/ redemption proceeds of zero coupon bonds, in view of specific provisions of S.194A(3)(x). As such as per Section 194A,  no TDS is deducted on income payable on zero coupon bonds.

Maturity, redemption or otherwise transfer of zero coupon bonds is treated as transfer in the hands of investor for the purpose of capital gains tax under S.2(47)(iva). Income arising from zero coupon bonds as defined in S.(48)(2) is taxed only in the year in which same is transferred or redeemed or matured.

Tax liability of investor on transfer of zero coupon bonds may be either short term or long depending upon the holding period, i.e. for not more than 12 months or otherwise.

Proviso to S.112(1) of Income Tax clarifies the process of calculating tax on long term capital gains arising from transfer of notified zero coupon bonds. In such cases  the tax payable in respect of long-term capital gain arising from transfer of a zero coupon bonds exceeds ten per cent, of the amount of capital gains without indexing 

So, declare the differential amount under LTCG at 10% rate, without indexation.