Site Restoration Fund (Deduction for Petroleum & Natural Gas Business) - (New) Section 49 / (Old) Section 33ABA

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....books. • Deposit must be made into: • A special account, or • A site restoration account (as per government scheme) Sub-section (2): Tax on Withdrawal • If the company at the time of closure or otherwise • Withdraws money, or • Transfers money from these accounts •  Then that amount becomes taxable income in that year. Sub-section (3): Sale/Transfer of Assets • If assets acquired under this scheme are: • Sold, or • Transferred • Tax treatment will according to the provision specified in Schedule X. 1. Quantum of deduction. 1.1: Core Deduction Formula The deduction allowe....

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.... [ Rule 291 ] 2.2 Relaxation for already audited entities • If the assessee is already required to undergo audit under another law (e.g., Companies Act): • Then compliance is satisfied if: • Audit is completed before the due date under such law before the specified date referred to in section 63 and • furnishes by that date the report of such audit and a report by an accountant in such form referred to in paragraph 2.1(c). 2.3 No Double Deduction • If any deduction has been allowed under paragraph 1 in any tax year, • No deduction shall be allowed in respect of such amount in any other tax year. 2.4 Entity-level Deduction Onl....

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....€¢ Formula: A = B - C • Where: • B = Total amount withdrawn • C = Amount payable to Government (profit/production share) • A = Taxable business income 3.4 Even if business is closed • Where any amount is withdrawn on • closure of specified account in a tax year in which the business of the assessee is no longer in existence, • sub-paragraph (3) shall apply as if the business is in existence in that tax year. 3.5 Non-utilisation = taxable income • If any amount standing to the credited of the assessee- • Withdrawn or released • during any tax year for utilisation for the purposes of such business as ....

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...., • then, the part of cost of asset as is relatable to the deduction allowed under paragraph 1 shall be deemed to be the profits and gains of business of the tax year in which such asset is sold or transferred and • shall accordingly be charged to income-tax for that tax year. (2) Exception -  shall not apply, if the asset is sold or transferred by- • (a) the assessee to the specified person; or • (b) a firm to a company in connection with succession of business or profession of the firm by such company subject to the following conditions :- • (i) the provisions of special scheme or deposit scheme is applicable to the company in the same manner as it applied to the fir....

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....vided: • Deduction u/s 33ABA shall not be allowed in computation of income of a partner of a firm or member of AOP or BOI, if deduction is claimed under this section by the firm or AOP or BOI. • Where any deduction of amount deposited in the special account has been allowed under this sub-section in any PY, then no deduction shall be allowed for such amount in any other PY. • Any amount credited in the special account or site restoration account by way of interest shall be deemed to be a deposit. The deduction under this section shall not be admissible unless the accounts of such business of the assessee are audited by an accountant and assessee furnishes along with his return of income the audit re....