CBDT Notifies Zero Coupon Bonds of NABARD for Income Tax:

CBDT Notifies Zero-Coupon Bonds of NABARD for Income Tax The Ministry of Finance has issued an official notification dated June 12, 2025, notifying the Central Government of India has officially declared the bond issued by the NABARD (National Bank for Agriculture and Rural Development) as Zero Coupon Bond for purposes of Income Tax, in exercise of its powers described under clause (48) of section 2 of the Income-tax Act, 1961 (43 of 1961), read 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.

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What Is a Zero-Coupon Bond?

A Zero Coupon Bond is also known as a discount bond that does not pay interest over time. Instead, you buy it at a much lower price than its final value (called face value), and you get the full value when the bond “matures” (ends). The difference between the purchase price and the amount received at maturity is considered the gain (income).

Key Details of This NABARD Bond:

• Name of the Bond: Zero Coupon Bond of NABARD
• Duration (Life) of the Bond: 10 years, 11 months, and 13 days
• When It Will Be Issued: Any time on or before March 31, 2027
• Maturity Amount (Final Payout): Rs. 19,500 crores will be paid when the bond matures
• Discount (Difference from Face Value): Rs. 10,349.625 crores — this means the bonds are being sold for less than Rs. 19,500 crores
• Number of Bonds to Be Issued: 19.50 lakh bonds (i.e., 1,950,000 bonds)