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 2 *** 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.Open in Lexace · Ask the AI about this section
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