Zero Coupon Bond

Last updated: 15 February 2008

Zero Coupon Bond

NOTIFICATION NO: 23/2008, Dated: February 6, 2008

In exercise of the powers conferred by clause 48 of section 2 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the bond with the following particulars as zero coupon bond for the purposes of the said clause, namely:-

(a) name of the bond	- ten years zero coupon bond of National Housing Bank (NHB); ten years;
(b) period of life of the bond	- ten years;
(c) the time schedule of the issue of the bond	- to be issued on or before the 31st day of March, 2009;
(d) the amount to be paid on maturity or redemption of the bond	- ten thousand rupees for each bond;
(e) the discount	- to be decided by National Housing Bank (NHB) at the time of issue of the bond; and
(f) the number of bonds to be issued	- Thirty lakhs.

2. This notification is subject to the fulfillment of conditions referred to in clause (ii), clause (iii) and clause (v) of sub-rule (3) and sub-rule (6) of rule 8B of the Income-tax Rules, 1962.