Reduction in rate of income-tax in respect of business consisting of prospecting for or extraction or production of mineral oils by any person being an Indian company - G.S.R.896(E) - Income Tax

Reduction in rate of income-tax in respect of business consisting of prospecting for or extraction or production of mineral oils by any person being an Indian company NOTIFICATION NO. G.S.R.896 ( E ) DATED 26-11-1992 Whereas, the Central Government is satisfied that it is necessary and expedient so to do in public interest to make reduction in the rate in respect of income-tax in favour of any person, being an Indian company, with whom the Central Government has entered into an agreement for the association or participation of that Government or any person authorised by that Government in any business consisting of the propecting for or extraction or production of mineral oils ; Now, therefore, in exercise of the powers conferred by section 293A of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby provides that-- ( a ) where the total income of any such person consists only of profits and gains derived from such business, the tax payable by such person on his total income shall be the amount of income-tax calculated on such total income at the rate of fifty per cent. of such income ; no surcharge for the Union is to be levied on such income ; ( b ) where the total income of such person includes such profits and gains, the tax payable by him on his total income shall be-- ( i ) the aggregate of the income-tax payable by him in accordance with the provisions of clause ( a ) on the profits and gains referred to in that clause included in the total income ; plus ( ii ) the amount of income-tax calculated on the amount of total income as reduced by the amount of profits and gains referred to in clause ( a ), at the rate of income-tax which would have been applicable to the total income, if the provision of the said clause had not applied, increased by a surcharge at the rate provided in the Finance Act of the relevant assessment year on the amount of income-tax payable under this clause. Explanation.-- For the purposes of this notification, ( a ) "Indian company" shall have the meaning assigned to it in sub-section (26) of section 2 of the Income-tax Act, 1961 (43 of 1961) ; ( b ) "mineral oil" includes petroleum and natural gas. ( Sd. ) T. S. Krishna Murthy, Joint Secretary to the Government of India . [No. . . .(F. No. 467/9/92-FTD)]