Discount on Zero Coupon Bond - Section 36(1)(iiia)

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..... ording to section 2(48), zero coupon bond is a notified bond issued by any infrastructure capital company (or infrastructure capital fund or public sector company or scheduled bank) on or after June 1, 2005. In respect of such bond, no payment/benefit is received (or receivable) by a bondholder before maturity/redemption. * Meaning of Discount:- Discount means the difference between the amount .....

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..... vestment grade rating from at least 2 registered credit rating agencies. * The applicant should have made necessary arrangements for listing the Zero coupon bonds. * A certificate from a chartered accountant shall be submitted within 2 month from the end of each financial year specifying the amount invested in each financial year. * Tax Treatment in the hands of company issuing such bonds .....

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