The Industrial Finance Corporation Act, 1948
40. Provision relating to income-tax and super tax.
For the purposes of the Indian Income - tax Act, 1922(11 of 1922), the 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 Central Government under the guarantee given in pursuance of sub-section 5 or under any guarantee given in pursuance of sub-section (2) of section 21 9*[or sub-section(2) of section 27] shall not be treated as the income, profit and gains of the Corporation, and any interest on debentures or bonds 9*[or on foreign currency borrowed under sub-section (1) of section 27] paid by the Corporation out of such sum shall not be treated as expenditure incurred by it:
- Subs. by Act 78 of 1952, s. 26, for "or servant".
- Ins. by Act 43 of 1957, s. 15.
- Ins. by Act 50 of 1986, s. 19 (w.e.f. 2.2.1987).
- Ins. by Act 48 of 1983, s. 5.
- Re-numbered by s. 5, ibid.
- Ins. by Act 74 of 1972, s. 20.
- Ins. by Act 2 of 1982, s. 18 (w.e.f. 12.3.1982).
- Subs. by Act 78 of 1952, s. 27, for "or servant".
- Ins. by s. 28, ibid.
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 Central Government, shall be deemed to be his income from "interest on securities", declared to be income-tax free within the meaning of section 8 of the said Act.