Quick Summary
The Ministry of Finance, through the Central Board of Direct Taxes (CBDT), has notified the "Ten Year Zero Coupon Bond" of the Indian Railway Finance Corporation Ltd. (IRFC) as a zero coupon bond under clause (48) of section 2 of the Income-tax Act, 1961. The notification, issued on May 14, 2025, defines key financial terms and tax treatment applicable to this bond. As per Notification No. 48/2025, the bond is eligible for tax treatment as a zero coupon bond, and its issuance is governed under
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1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
3 Months PLAN
999
(Excl. of GST ₹179)
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FAQ :
The CBDT has classified IRFC's 'Ten Year Zero Coupon Bond' as a zero coupon bond under the Income-tax Act, 1961.
A zero coupon bond is issued at a discount and does not bear periodic interest. The full redemption amount is paid at maturity.
The redemption amount for the IRFC bond is ₹10,000 crore.
The issue deadline for the IRFC zero coupon bond is on or before 31st March 2027.
The capital gains from such bonds are taxable under specific provisions, generally using an accrual-based method unless transferred before maturity.
It provides clarity on tax treatment for investors, encourages participation from various investor types, and supports infrastructure financing efforts.
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