Act Number: 38

Act Name: The State Bank of India (Subsidiary Banks) Act, 1959

Year: 1959

Enactment Date: 1959-09-10

Long Title: An Act to provide for the formation of certain Government or Government associated banks as subsidiaries of the State Bank of India and for the constitution, management and control of the subsidiary banks so formed, and for matters connected therewith, or incidental thereto.

Ministry: Ministry of Finance

Department: Department of Financial Services

Section 48: Cost of development programme.
    (1) A subsidiary bank may accept any subsidies offered by the State Bank to meet--
         (a) the cost of the whole or any part of any specific programme of development undertaken by that subsidiary bank with the approval of the State Bank; and
         (b) such losses or expenditure as may be approved by the State Bank, with the consent of the Reserve Bank.
     (2) For the purposes of the 1[Income-tax Act, 1961 (43 of 1961)], any subsidy received by a subsidiary bank under sub-section (1) shall not be treated as income, profits or gains of the subsidiary bank.
Notes:
1. Subs. by Act 30 of 2007, s. 23 for "Indian Income-tax Act, 1922 (11 of 1922)" (w.e.f. 9-7-2007).
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