Section 293A — Power to make exemption, etc., in relation to participation in the business of prospecting for, extraction, etc., of mineral oils

Function in the statutory architecture

Section 293A empowers the Central Government, if satisfied that it is necessary or expedient in the public interest, to make by notification an exemption, reduction in rate or other modification in respect of income-tax for specified classes of persons connected with the prospecting for, or extraction or production of, mineral oils. The notification may relate to the whole or part of their income or to the status in which they are assessed; a modification of status may be given effect from an assessment year beginning on or after 1 April 1993.

The classes are persons with whom the Central Government has entered into agreements for its association or participation in such business; persons providing services or facilities, or supplying any ship, aircraft, machinery or plant, in connection with such business carried on by that Government or a notified person; and employees of either. "Mineral oil" includes petroleum and natural gas.

Operative consequences

• Concessions take effect only through notification in the Official Gazette.
• Every notification must be laid before each House of Parliament.
• "Status" means the category, such as "individual" or "Hindu undivided family", in which the assessee is assessed.

Status

Section 293A is operative for assessment year 2026-27. It is not time-limited. The Finance Act, 2026 did not amend this section.

The 1961 Act governs assessment year 2026-27 and earlier; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 527.