Section 49 — Site Restoration Fund

Old Act equivalent: Section 33ABA of IT Act 1961 Sub-part: D.—Profits and gains of business or profession

Statutory Text

  1. (1) An assessee carrying on a business of prospecting, extracting, or producing

    petroleum or natural gas, or both, in India, and who has an agreement with the Central Government for this business, shall be allowed a deduction on the basis of deposit to special account or site restoration account and computed as per the provisions of the Schedule X. (2) Any amount withdrawn or transferred from the aforesaid accounts at the time of closure or otherwise shall be charged to tax in the year in which the amount is transferred or withdrawn as per the provisions of the Schedule X. (3) Where any asset acquired as per the special scheme, or the deposit scheme, as referred to in Schedule X, is sold or otherwise transferred in any tax year, it shall be charged to tax in accordance with the provisions of the said Schedule. Special provision in case of trade, profession or similar association.

Sub-sections

Sub-section (1)

  1. (1) An assessee carrying on a business of prospecting, extracting, or producing

    petroleum or natural gas, or both, in India, and who has an agreement with the Central Government for this business, shall be allowed a deduction on the basis of deposit to special account or site restoration account and computed as per the provisions of the Schedule X.

Sub-section (2)

(2) Any amount withdrawn or transferred from the aforesaid accounts at the time of closure or otherwise shall be charged to tax in the year in which the amount is transferred or withdrawn as per the provisions of the Schedule X.

Sub-section (3)

(3) Where any asset acquired as per the special scheme, or the deposit scheme, as referred to in Schedule X, is sold or otherwise transferred in any tax year, it shall be charged to tax in accordance with the provisions of the said Schedule. Special provision in case of trade, profession or similar association.

Provisos

None.

Explanations

None.

Tables

None.

Key Structure

  • Applies to: Assessees engaged in extraction or production of petroleum or natural gas.
  • Scope: Deposits to Site Restoration Fund for decommissioning of oil/gas facilities.
  • Conditions: Must be deposited as per approved scheme; withdrawals for site restoration.

Cross-References

None identified.

Amendment Notes

None noted from the extracted pages.

Practical Notes