You are here
Deduction for Whom
This deduction is only available to an assesse who is engaged in the business of
Prospecting for/Extraction of/Production of
Petroleum,Natural Gas or Both
+
Central Government has entered into agreement for Such purpose
Where to Deposit
The deduction is available only if certain amount is deposited in
(a) SBI (State Bank of India)
As per Scheme of Ministry of Petroleum and Natural Gas,Govt of India
(b) Any Site Restoration Account (also called Deposit Scheme)
As per Scheme of Ministry of Petroleum and Natural Gas,Govt of India
Amount of Deduction
(1) The amount of deduction available is
(a) Amount deposited
(b) 20% of PGBP without considering Section 33ABA deduction
whic hever is less.
Time Period to Deposit
6 months from end of the financial year in which deduction claimed. i.e. 30 September
Or
Return Fililng Date (31 July/30 September/30 November)
Which ever is earlier
EXAMPLE
| S.NO | PARTICULARS | CASE 1 | CASE 2 | CASE 3 |
| A | DUE DATE OF ITR | 31-Jul | 30-Sep | 30-Nov |
| B | 6 MONTH FROM END OF FY | 30-Sep | 30-Sep | 30-Sep |
| C | Amount to be deposited by | 31 July | 30-Sep | 30-Sep |
| (earlier of A AND B) |
Audit Requirement
- Compulsory audit required by CA, to claim deduction, CA should give report in Prescribed form (Form 3AD).
- If accounts already audited under any low then separate audit under this section not required .However audit report in Form 3C required
All other Points Similar to Section 33AB :-
How to utilize amount Deposited .
It is to be utilized only as per scheme
However,Amount not allowed to be utilized for :
- Purchase of machinery which is to be used in office / home / guest house .
- Any office appliance s (however computer allowed)
- Any plant & machinery whose 100% cost allowed as deduction under PGBP (for example 100% depreciation assets )
- Any machinery which is used is used for manufacture of prohibited item mentioned in Eleventh schedule .
Withdrawal of deposit
|
Case |
Taxability |
|
Closure of business |
Taxable |
|
Dissolution of firm |
Taxable |
|
Partition of H.U.F |
Not taxable |
|
Death of assesse |
Not taxable |
|
Liquidation of company . |
Not taxable |
If amount withdrawn or but not used as per scheme then it will be treated as income and charged to Income Tax.
Asset Acquired Out of Funds of Scheme
Such assets should not be transferred within 8 years
If transferred it will be treated as income of year in which it is transferred.
Exceptions
However in the following cases these is no restriction of 8 years .
- Assets sold to government / Local Authority / Government Company
- Conversion of partnership into company if all assets liabilities are transferred to company and all partners becomes the shareholder/members of the company .
