Tax holiday for Oil and Gas blocks to be awarded under NELP-VIII

The Finance Minister Shri Pranab Mukherjee in his Budget proposals presented to the Lok Sabha today informed that he proposes to extend income tax holiday to natural gas under Section 80-IB (9) of the Income Tax Act, which was hitherto available on profits from commercial production or refining mineral oil. He said that this tax benefit will be available to undertakings in respect of profits derived from the commercial production of mineral oil and natural gas from oil and gas blocks which are awarded under the New Exploration Licencing Policy-VIII round of bidding.

He also proposed to retrospectively amend the provisions of said Sections to provide that "undertaking" for the purposes of Section 80-IB (9) will mean all blocks awarded in any single contract.

Source : Equity Bulls

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