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CMA Intermediate · Direct and Indirect Taxation · Profits and Gains of Business or Profession

Which of the following is a condition for claiming the site restoration fund deduction under Schedule X?

The assessee must have deposited the amount in the specified account (SBI special account or site restoration account) before the end of the tax year. The business must be petroleum or natural gas operations in India under a Central Government agreement, and accounts must be audited.

  1. AThe assessee must deposit the amount in the specified account before the end of the tax yearCorrect
  2. BThe assessee must be a company only
  3. CThe assessee must be engaged in mining of any mineral
  4. DThe deposit must be made only after the due date of filing the return

Explanation

Paragraph 2 requires the assessee to carry on petroleum or natural gas prospecting, extraction or production in India under an agreement with the Central Government, and to deposit the amount in the specified account before the end of the tax year. It is not limited to companies, nor to general mining, and the deposit is not made after the return due date.

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