Income-tax Act, 2025

DEDUCTION FOR SITE RESTORATION FUND FOR COMPUTING INCOME UNDER THE HEAD PROFITS AND GAINS OF BUSINESS OR PROFESSION - Schedule X

SCHEDULE X

[See section 49]

DEDUCTION FOR SITE RESTORATION FUND FOR COMPUTING INCOME UNDER THE HEAD "PROFITS AND GAINS OF BUSINESS OR PROFESSION"

Quantum of deduction.

1. (1) An assessee shall be allowed deduction of,--

(a)

the amount or aggregate of the amount deposited by the assessee in the account as specified in paragraph 2; or

(b)

20% of the profits of such business computed under the head "Profits and gains of business or profession" before making any deduction under this paragraph,

whichever is less.

(2) The deduction shall be allowed before allowing set off of loss, if any, brought forward from earlier tax years as per section 112.

(3) Any interest credited in the specified account shall be deemed to be a deposit.

Conditions for claiming deduction.

2. (1) Deduction under paragraph 1 shall be allowed if the assessee--

(a)

is, during the tax year, carrying on the business consisting of the prospecting for, or extraction or production of, petroleum or natural gas, or both in India, and has entered into an agreement with the Central Government for such business;

(b)

has, before the end of the tax year, deposited any amount in the specified account, being,--

(i)

a special account maintained with the State Bank of India in accordance with, and for the purposes specified in the special scheme; or

(ii)

a site restoration account in accordance with, and for the purposes specified in the deposit scheme; and

(c)

gets the accounts of such business for the relevant tax year audited by an accountant before the specified date referred to in section 63 and furnishes the audit report, in such form and manner, as may be prescribed and verified by such accountant, by that date.

(2) Where the assessee is required, by or under any other law, to get his accounts audi .... To read the full section download the app from Google Play store