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CS Executive · Tax Laws and Practice · Profits and Gains from Business and Profession

Which of the following is a condition for claiming the site restoration deduction under Schedule X of the Income-tax Act, 2025?

The assessee must carry on prospecting, extraction or production of petroleum or natural gas in India under an agreement with the Central Government. Deposit must be made before the tax year ends and accounts must be audited, and the assessee need not be a company.

  1. AThe assessee must be a company only
  2. BThe business must relate to prospecting for or extraction or production of petroleum or natural gas in India under an agreement with the Central GovernmentCorrect
  3. CThe deposit must be made after the end of the tax year but before the audit
  4. DThe assessee need not get the accounts audited if the deposit is made with SBI

Explanation

The deduction requires that the assessee carries on petroleum or natural gas prospecting, extraction or production in India under an agreement with the Central Government, deposits in the specified account before the tax year ends, and gets accounts audited. Firms and AOPs are also covered, deposit must be by year end, and audit is mandatory.

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