NaBFID zero-coupon bonds explained: Investment size, returns, maturity, tax rules to know

NaBFID is issuing ₹20,000 crore zero-coupon bonds with a 10-year maturity and no periodic interest payments.

Each bond has a face value of ₹1,00,000, issued at an indicative price of ₹48,519.40, and redeemed at ₹1,00,000 at maturity.

The annual compounded return is approximately 7.49% per year, derived from capital appreciation.

Income from these bonds is treated as capital gains and taxable on redemption, sale, or maturity, with long-term gains taxed as per rules.

The proceeds will fund infrastructure development in sectors like transportation, energy, and logistics.