CH. 1—NORMAL TAXES AND SURTAXES
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beneficiary under subchapter J shall be t r e a t e d for purposes of paragraph (2) a s a gift, b e q u e s t, devise, or i n h e r i t a n c e of i n c o m e from property. SEC. 103. INTEREST ON CERTAIN GOVERNMENTAL OBLIGATIONS. (a) GENERAL RULE. — G r o s s i n c o m e does not i n c l u d e i n t e r e s to n — (1) the obligations of a State, a T e r r i to r y, o r a possession of the United States, or any political subdivision of any of the foregoing, or of the District of C o l u m b i a; (2) the obligations of the United States; or (3) the obligations of a corporation organized under Act of C o n g r e s s, if s u c h corporation is a n i n s t r u m e n t a l i t y of the United States and if under the r e s p e c t i v e Acts a u t h o r i z i n g the issue of the o b l i g a t i o n s the i n t e r e s t is w h o l l y e x e m p t from the tax e s i m p o s e d by this subtitle. (b) EXCEPTION. — S u b s e c t i o n (a)(2) shall not a p p l y to i n t e r e s to n obligations of the United States issued after September 1, 1917 (other than p o s t a l s a v i n g s certificates of deposit, to the e x t e n t the y r e p r e s e n t d e p o s i t s m a d e before March 1, 1941), unless under the r e s p e c t i v e Act s a u t h o r i z i n g the issuance thereof s u c h i n t e r e s t is wholly e x e m p t from the tax e s i m p o s e d by this s u b title. (c)
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REFERENCES.—
For provisions relating to the taxable status of— (1) Bonds and certificates of indebtedness authorized by the First Liberty Bond Act, see sections 1 and 6 of that Act (40 Stat. 35, 36; 31 U.S.C. 746, 755); (2) Bonds issued to restore or maintain the gold reserve, see section 2 of the Act of March 14, 1900 (31 Stat. 46; 31 U.S.C. 408); (3) Bonds, notes, certificates of indebtedness, and Treasury bills authorized by the Second Liberty Bond Act, see sections 4, 5 (b) and (d), 7 18 (b), and 22 (d) of that Act, as amended (40 Stat. 290; 46 Stat. 20, 775; 40 Stat. 291, 1310; 55 Stat. 8; 31 U.S.C. 752a, 754, 747, 753, 757c); (4) Bonds, notes, and certificates of indebtedness of the United States and bonds of the War Finance Corporation owned by certain nonresidents, see section 3 of the Fourth Liberty Bond Act, as amended (40 Stat. 1311, § 4; 31 U.S.C. 750); (5) Certificates of indebtedness issued after February 4, 1910, see section 2 of the Act of that date (36 Stat. 192; 31 U.S.C. 769); (6) Consols of 1930, see section 11 of the Act of March 14, 1900 (31 Stat. 48; 31 U.S.C. 751); (7) Obligations and evidences of ownership issued by the United States or any of its agencies or instrumentalities on or after March 28, 1942, see section 4 of the Public Debt Act of 1941, as amended (c. 147, 61 Stat. 180; 31 U.S.C. 742a); (8) Commodity Credit Corporation obligations, see section 5 of the Act of March 8, 1938 (52 Stat, 108; 15 U.S.C. 713a-5); (9) Debentures issued by Federal Housing Administrator, see sections 204(d) and 207 (i) of the National Housing Act, as amended (52 Stat. 14, 20; 12 U.S.C. 1710, 1713); (10) Debentures issued to mortgagees by United States Maritime Commission, see section 1105(c) of the M e r c h a n t Marine Act, 1936, as amended (52 Stat. 972; 46 U.S.C. 1275); (11) Federal Deposit Insurance Corporation obligations, s e e section
15 of the Federal Deposit Insurance Act (64 Stat. 890; 12 U.S.C. 1825); (12) Federal Home Loan Bank obligations, see section 13 of the Federal Home Loan Bank Act, as amended (49 Stat. 295, § 8; 12 U.S.C. 1433); § 103(c) (12)
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