§ 49
Chapter IV — Computation Of Total Income
Site Restoration Fund
Income-tax Act, 2025
Businesses involved in petroleum or natural gas extraction in India can claim a deduction based on deposits to a site restoration account. The deduction is calculated according to Schedule X. Any withdrawals or transfers from this account are taxable in the year they occur. Assets acquired under this scheme are also subject to tax when sold or transferred.
📜 Official text of the section +
49. (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(2) Any amount withdrawn or transferred from the aforesaid accounts at the time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transferred or withdrawn as per the provisions of the Schedule X.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.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.