State Financial Corporations Act,1951

Act No : 63

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Section : Provisions relating to income-tax and super-tax.

43. Provisions relating to income-tax and super-tax. For the purposes of the 1*[Income-tax Act, 1961 (43 of 1961)], the Financial Corporation shall be deemed to be a company within the meaning of that Act and shall be liable to income-tax and super-tax accordingly on its income, profits and gains: Provided that any sum paid by the State Government under the guarantee given in pursuance of section 6 or 2*[section 7 or section 8] shall not be treated as the income, profits and gains of the Financial Corporation and any interest on debentures 3*[bonds or deposits] paid by the Financial Corporation out of such sum shall not be treated as expenditure incurred by it: Provided further that in the case of any shareholder such portion of a dividend as has been paid out of any such sum advanced by the State Government shall be deemed to be 4*[his] income from "interest on securities" 5*[and the income-tax shall be payable thereon as if it were the interest receivable on any security of a State Government issued income-tax free] within the meaning of section 8 of that Act.

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