ITA 2025 · Section 49

Site Restoration Fund

Chapter IV — Computation of Total IncomeITA 2025AY 2026-27 onward

Section 49 — SITE RESTORATION FUND

Section 49 prescribes a profit-deferral incentive for assessees engaged in prospecting / extracting / producing petroleum / natural gas — substantive equivalent of 1961 s. 33ABA. Up to 20% of profits, deposited with SBI in approved Site Restoration Fund, is deductible. The withdrawal restrictions ensure the deposited amount is used for site-restoration activities.

Statutory text — Income-tax Act, 2025

Marginal note — Site Restoration Fund

(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(2) Any amount withdrawn or transferred from the aforesaid accounts at the time of closure or otherwise shall be charged to tax in the year in which the amount is transferred or withdrawn as per the provisions of the Schedule X.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.

Corresponding provision — 1961 regime

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
INCOME-TAX ACT, 2025 — s. 49	INCOME-TAX ACT, 1961 — s. 33ABA
20% of PGBP profits — Site Restoration Fund	1961 s. 33ABA — same
Withdrawal for specified site-restoration purposes	Same

STATUTORY ARCHITECTURE

Section 49 is sectoral — applies only to petroleum / natural gas / mineral-oil prospecting / extraction businesses. The 20% cap of profits is deductible on actual deposit with SBI's Site Restoration Fund within 6 months from end of FY OR before s. 263 due-date, whichever earlier. Misuse triggers reversal of deduction in year of misuse.

PLANNING NOTES

(i) For oil / gas / mining clients, evaluate s. 49 deposit annually. (ii) Verify deposit timing strictly. (iii) Maintain SBI certificate + auditor certification (Form 3CD).

CROSS-REFERENCES

Section 38 — Deemed profits (interaction with misused withdrawal).
Section 263 — Return of income (deposit timing).

← All sections (537)Act 2025 hub