Site Restoration Fund: Clause 49 and Schedule X of the Income Tax Bill, 2025 vs. Section 33ABA of the Income Tax Act, 1961

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....rning the Site Restoration Fund for businesses involved in the prospecting, extraction, or production of petroleum or natural gas in India. This provision is designed to replace and update the existing framework u/s 33ABA of the Income Tax Act, 1961. The primary objective is to streamline the process of deductions related to site restoration funds and align them with modern economic and environmen....

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.... 2025 Clause 49 allows deductions for businesses engaged in petroleum or natural gas extraction, contingent on deposits made into a special or site restoration account. The deductions are calculated based on deposits as per Schedule X, which outlines specific rules and conditions for these accounts. Schedule X of the Income Tax Bill, 2025 * Quantum of Deduction: The deduction is limited to the....

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....Comparison with Section 33ABA of the Income Tax Act, 1961 * Similarities: Both provisions allow deductions based on deposits into specified accounts for site restoration. They share similar conditions regarding the agreement with the Central Government and the need for audited accounts. * Differences: * Schedule X introduces more detailed conditions for withdrawals and specifies penalties fo....

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....dards, the updated provisions bring Indian tax law closer to global best practices in environmental accountability for resource extraction industries. The focus on detailed compliance and auditing requirements reflects a shift towards greater transparency and accountability. Conclusion Clause 49 and Schedule X of the Income Tax Bill, 2025 represent a significant evolution in the regulatory frame....