Tax withholding on Zero Coupon Bonds clarified as difference between redemption value and bid price when held by financial institutions. Central Government specifies that the difference payable between the redemption value and the bid price of Zero Coupon Bonds issued by auction under the Government of India scheme is within the scope of clause (iiia) of the proviso to section 193, and that this specification applies when such bonds are held by banking companies, co operative banks, public financial institutions, the Discount and Finance House of India Limited, and the Securities Trading Corporation of India Limited.