Specified oil exploration deductions allow special treatment of exploration, drilling and depletion when computing business profits. Profits from a specified oil exploration business qualify for deductions when computing income under 'Profits and gains of business or profession.' A specified business requires an agreement with the Central Government providing for government association or participation and laid before both Houses of Parliament. Allowed deductions cover infructuous or abortive exploration before commercial production, drilling and related expenditures or assets after commencement, and depletion in the year of commencement and succeeding years as per the agreement. Transfer of the business triggers rules comparing proceeds, total expenditure and unallowed expenditure to determine deductible amounts or taxable profits; special continuation and amalgamation/demerger provisions are prescribed.