Quick Summary
The Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (CBDT), has issued Notification No. 52/2025 dated May 30, 2025, formally recognizing the "Ten Year Zero Coupon Bond" issued by REC Ltd. as a zero coupon bond under Clause (48) of Section 2 of the Income-tax Act, 1961. According to the notification published in the Gazette of India (S.O. 2447(E)), the following key details define the bond: Name of the Bond: Ten-Year Zero Coupon Bond of REC Ltd. Life of the Bond:
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1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
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FAQ :
The CBDT has notified REC Ltd.'s 'Ten Year Zero Coupon Bond' as a zero coupon bond under Section 2(48) of the Income-Tax Act, 1961.
The maturity value of the REC Ltd. Zero Coupon Bond is ₹5,000 crore.
The issuance deadline for the REC Ltd. Zero Coupon Bond is on or before March 31, 2027.
Investors will realise income through capital appreciation upon maturity, rather than receiving periodic interest, which ensures favourable capital gains tax treatment.
This classification is expected to bolster long-term infrastructure financing and attract institutional investors to REC Ltd.
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