Income Tax: The Central Government has notified the “Ten Year Zero Coupon Bond” issued by Housing and Urban Development Corporation Ltd. (HUDCO) as a Zero Coupon Bond under clause (48) of section 2 of the Income-tax Act, 1961, in accordance with Rule 8B of the Income-tax Rules, 1962. (22.04.2025)

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Income Tax:

The Central Government has notified the “Ten Year Zero Coupon Bond” issued by Housing and Urban Development Corporation Ltd. (HUDCO) as a Zero Coupon Bond under clause (48) of section 2 of the Income-tax Act, 1961, in accordance with Rule 8B of the Income-tax Rules, 1962.

Key features of the bond:

  • Tenure: 10 years and 1 month
  • Issue Timeline: On or before March 31, 2027
  • Maturity Value: ₹5,000 crores
  • Discount: ₹2,351.49 crores
  • Total Bonds: 5 lakh units

HUDCO is required to use the proceeds exclusively for infrastructure projects that can independently service the debt through project revenues, without reliance on State Government support. The definition of “infrastructure” aligns with the Updated Harmonised Master List of Infrastructure sub-sectors notified by the Department of Economic Affairs.

[Notification No. 34/2025 dated 17.04.2025]