Section 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
of2*** 3[section 7 or section 8] shall not be treated as the income, profits and gains of the Financial
Corporation and any interest on debentures, 4[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 5[his] income from "interest on
securities"
6[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.
Notes:
1. Subs. by Act 43 of 1985, s. 26, for "Indian Income-tax Act, 1922 (11 of 1922)" (w.e.f. 21-8-1985).
2. The words and figure "section 6 or" omitted by Act 39 of 2000, s. 31 (w.e.f. 5-9-2000).
3. Subs. by Act 6 of 1962, s. 22, for certain words (w.e.f. 16-4-1962).
4. Subs. by s. 22, ibid., for "or bonds" (w.e.f. 16-4-1962).
5. Subs. by Act 48 of 1952, s. 3 and second Schedule, for "its" (w.e.f. 2-8-1952).
6. Subs. by Act 6 of 1962, s. 22, for "Declared to be income-tax free" (w.e.f. 16-4-1962).