The Central Board of Direct Taxes (CBDT) vide notification no. S.O. 3440(E) issued on 1st August 2023 has notified the Ten Year Zero Coupon Bond of Rural Electrification Corporation Limited (REC Ltd) to be issued on or before 31st of March of 2025.
Based on the authority provided by clause (48) of section 2 of the Income-tax Act, 1961 (43 of 1961), in conjunction with clause (ii), clause (iii), and clause (v) of sub-rule (3) and sub-rule (6) of rule 8B of the Income-tax Rules, 1962, the Central Government officially designates the bond with the specified details as a zero coupon bond for the purposes of the mentioned clause (48) of section 2 of the Income-tax Act, 1961.
The details of the bond are hereunder:
| name of the bond | Ten Year Zero Coupon Bond of REC Ltd |
| period of life of bond | ten years one months |
| the time schedule of the issue | to be issued on or before the 31st day of March of bond 2025; |
| the amount to be paid on maturity or redemption of the bond | 1 lakh rupees for each bond |
| the discount | Rs. 2517.85 crores |
| the number of the bonds to be issued | five lakhs |
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