Latest news with #ZeroCouponBonds
New Indian Express
06-07-2025
- Business
- New Indian Express
Things you should remember while reporting capital gains/losses in ITR
If your financial year involved buying or selling assets, understanding how to correctly report capital gains or losses in your Income Tax Return (ITR) is paramount. While a tax advisor can guide you, a basic understanding of these concepts will empower you to manage your taxes effectively. What is a Capital Asset? As per Section 2(14) of the Income Tax Act, 1961, a "Capital Asset" is broadly defined to include "any kind of property held by an assessee, whether or not connected with business or profession." This wide definition covers everything from shares, mutual funds, and real estate to gold, and even certain intangible assets like patents. The origin of acquisition doesn't change its status; even if an asset is acquired with tax-exempt income, it remains a capital asset. Holding period matters Generally, an asset held for more than 36 months immediately preceding its transfer is considered long-term. However, there are some exceptions, though. For listed equity shares, units of equity-oriented mutual funds, listed debentures, Government Securities, Units of UTI, and zero-coupon bonds, the holding period is 12 months for gains to be eligible for long-term capital gains. For unlisted shares and immovable property (land or building or both), the threshold is 24 months. This period for immovable property was reduced from 36 months with effect from AY2018-19. What constitutes a "transfer" or sale? While "transfer" typically implies a sale, Section 2(47) of the Income Tax Act, 1961 provides an inclusive definition, encompassing a broader range of transactions that trigger capital gains tax. These include sale, exchange, or relinquishment of the asset; extinguishment of any rights in relation to a capital asset; compulsory acquisition of an asset; maturity or redemption of a Zero Coupon Bonds; allowing possession of immovable properties to the buyer in part performance of a contract (as per Section 53A of the Transfer of Property Act, 1882); any transaction that effectively transfers or enables the enjoyment of immovable property, and disposing of or parting with an asset or any interest therein, or creating any interest in any asset in any manner whatsoever. ITR form and documents If your income includes capital gains, you will likely need to file ITR-2 or ITR-3. For capital gains transactions, especially from shares, you'll require a summary or profit/loss statement from your broker. For mutual funds, consolidated capital gain statements from CAMs and KFintech are essential. For the capital gains/losses from equity shares, you can check with your broker for a capital gain statement. For the sale of Virtual Digital Assets, you can get transaction report or Profit and Loss report from respective exchanges. For immovable property, sale and purchase deeds, details of improvement costs, and transfer expenses are needed. Additionally, you'll need standard documents like your PAN, Aadhaar, bank account details, and Form 26AS. Setting off and carrying forward capital losses Capital losses can only be set off against capital gains. You cannot set off capital losses against income from other heads like salary or house property. Short-Term Capital Loss (STCL) can be set off against both Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG). Long-Term Capital Loss (LTCL) can only be set off against Long-Term Capital Gains (LTCG). If your capital losses cannot be fully set off in the current financial year, both STCL and LTCL can be carried forward for up to eight assessment years immediately succeeding the year in which the loss was incurred. Crucial condition for carry forward To avail the benefit of carrying forward losses, it is mandatory to file your Income Tax Return for the year in which the loss was incurred on or before the due date as prescribed under Section 139(1) of the Income Tax Act. Failure to do so will result in the forfeiture of your right to carry forward these losses.
Time of India
05-06-2025
- Business
- Time of India
REC gets CBDT nod to issue ₹5,000 crore Zero Coupon Bonds
New Delhi: REC Limited , a Maharatna Central Public Sector Enterprise under the Ministry of Power, has received approval from the Central Board of Direct Taxes (CBDT) to issue Zero Coupon Bonds (ZCBs) aggregating ₹5,000 crore. The bonds will have a tenure of ten years and six months. According to a notification dated May 30, 2025, issued by the Department of Revenue, Ministry of Finance, the approval allows REC to issue five lakh ZCBs. These instruments will be issued at a deep discount and redeemed at face value upon maturity, offering tax advantages to investors under the Income-tax Act, 1961. In FY 2024–25, REC had issued CBDT-notified ZCBs worth ₹5,000 crore, which received subscription nearly seven times the offered amount. That issue was priced at a yield of 6.25 per cent, approximately 100 basis points lower than the prevailing market rates . "The success of the previous issue enabled REC to tap into a new segment of investors while further diversifying its funding sources at competitive rates," the company stated. REC, which functions as a leading non-banking financial company (NBFC), said it remains committed to exploring innovative financial instruments for efficient fund mobilisation to support India's growing energy infrastructure .
Mint
21-04-2025
- Business
- Mint
HUDCO share price jumps after CBDT's approval for ₹5,000 crore fundraise via Zero Coupon Bonds
Housing & Urban Development Corporation (HUDCO) shares jumped after the Ministry of Finance's tax wing, Central Board of Direct Taxes (CBDT) approved the ₹ 5,000 crore fundraiser through Zero Coupon Bonds, according to the BSE filing on Monday, April 21. According to the filing data, CBDT approved the ₹ 5,000 crore fundraising move and permitted HUDCO to issue five lakh Zero Coupon Bonds with a tenure of ten years and one month. The company will be liable to pay ₹ 5,000 at maturity after completing the debt instrument's time period. Zero-Coupon Bonds are debt instruments that do not pay a periodic interest or coupon rate like other bonds. These bonds are sold at a discount to their face value. 'We wish to inform that Central Board of Direct Taxes, Department of Revenue, Ministry of Finance has, vide Notification No. S.O. 1744(E) dated 17th April, 2025, permitted Housing and Urban Development Corporation Limited (HUDCO) to issue Five Lakh Zero Coupon Bonds with tenure of ten years one month for amount of Rs. 5,000 Crore to be paid on maturity,' said the company in the exchange filing. Earlier in April, the company's board of directors approved HUDCO's annual fundraising plan of ₹ 65,000 crore for the 2025-26 fiscal, and also increased its overall borrowing limit to ₹ 2.5 lakh crore, from its earlier level of ₹ 1.5 lakh crore, Mint reported. Housing & Urban Development Corporation (HUDCO) shares closed 2.62 per cent higher at ₹ 234.90 after Monday's stock market session, compared to ₹ 228.90 at the previous market close. HUDCO shares have given stock market investors more than 990 per cent returns in the last five years and over 20 per cent returns in the last one-year period. However, the shares have lost over 1 per cent on a year-to-date (YTD) basis in 2025. HUDCO shares hit their 52-week high level at ₹ 353.95 on July 12, 2024, while the 52-week low level was at ₹ 158.90 on March 3, 2025, according to BSE data. The shares have also gained 15.83 per cent in the last one-month period, and nearly 9 per cent in the last five stock market sessions. HUDCO's market capitalisation (M-Cap) was at ₹ 47,024.63 crore as of Monday's stock market session.
Mint
21-04-2025
- Business
- Mint
HUDCO share price jumps after CBDT's approval for ₹5,000 crore fundraise via Zero Coupon Bonds
Housing & Urban Development Corporation (HUDCO) shares jumped after the Ministry of Finance's tax wing, Central Board of Direct Taxes (CBDT) approved the ₹ 5,000 crore fundraiser through Zero Coupon Bonds, according to the BSE filing on Monday, April 21. According to the filing data, CBDT approved the ₹ 5,000 crore fundraising move and permitted HUDCO to issue five lakh Zero Coupon Bonds with a tenure of ten years and one month. The company will be liable to pay ₹ 5,000 at maturity after completing the debt instrument's time period. Zero-Coupon Bonds are debt instruments that do not pay a periodic interest or coupon rate like other bonds. These bonds are sold at a discount to their face value. 'We wish to inform that Central Board of Direct Taxes, Department of Revenue, Ministry of Finance has, vide Notification No. S.O. 1744(E) dated 17th April, 2025, permitted Housing and Urban Development Corporation Limited (HUDCO) to issue Five Lakh Zero Coupon Bonds with tenure of ten years one month for amount of Rs. 5,000 Crore to be paid on maturity,' said the company in the exchange filing. Earlier in April, the company's board of directors approved HUDCO's annual fundraising plan of ₹ 65,000 crore for the 2025-26 fiscal, and also increased its overall borrowing limit to ₹ 2.5 lakh crore, from its earlier level of ₹ 1.5 lakh crore, Mint reported. Housing & Urban Development Corporation (HUDCO) shares closed 2.62 per cent higher at ₹ 234.90 after Monday's stock market session, compared to ₹ 228.90 at the previous market close. HUDCO shares have given stock market investors more than 990 per cent returns in the last five years and over 20 per cent returns in the last one-year period. However, the shares have lost over 1 per cent on a year-to-date (YTD) basis in 2025. HUDCO shares hit their 52-week high level at ₹ 353.95 on July 12, 2024, while the 52-week low level was at ₹ 158.90 on March 3, 2025, according to BSE data. The shares have also gained 15.83 per cent in the last one-month period, and nearly 9 per cent in the last five stock market sessions. HUDCO's market capitalisation (M-Cap) was at ₹ 47,024.63 crore as of Monday's stock market session. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions. First Published: 21 Apr 2025, 04:20 PM IST
