law: State Financial Corporations Act, 1951 
  43. Provisions relating to income tax and super-tax 
  For the purposes of the 24[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 section 7 or section 8
  
  shall not be treated as the income, profits and gains of the Financial
  
  Corporation and any interest on debentures, 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 shareholders such portion
  
  of a dividend as has been paid out of any such sum advanced by the State
  
  Government shall be deemed to be his income from "interest on
  
  securities" 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.