Zero Coupon Bond - Definition - Law Dictionary Home Dictionary Definition zero-coupon-bond

Definition :

Zero coupon bond. means a bond:

(a) issued by any infrastructure capital company or infrastructure capital fund or public sector company on or after the 1st day of June, 2005;

(b) in respect of which no payment and benefit is received or receivable before maturity or redemption from infrastructure capital company or infrastructure capital fund or public sector com-pany; and

(c) which the Central Government may, by notification in the Official Gazette, specify in this behalf. [Income Tax Act, 1961 (43 of 1961), s. 2(48)].