Section 293A of Income Tax Act for AY 2023-24

Section 293A of Income Tax Act 1961 amended by Finance Act 2022 and Income-tax Rules. Power to make exemption for extraction of mineral oils.

Amended and updated notes on section 293A of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to power to make exemption, etc., in relation to participation in the business of prospecting for, extraction, etc., of mineral oils.

Chapter XXIII (Sections 281 to 298) of the Income Tax Act 1961 deals with the provisions related to Miscellaneous. Section 293A of IT Act 1961 provides for Power to make exemption, etc., in relation to participation in the business of prospecting for, extraction, etc., of mineral oils.

Recently, we have discussed in detail section 293 (Bar of suits in civil courts) of IT Act 1961. Today, we learn the provisions of section 293A of Income-tax Act 1961. The amended provision of section 293A is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 293A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section-293A: Power to make exemption in relation to participation in the business of prospecting for, extraction of mineral oils

Section 293A(1) of Income Tax Act

If the Central Government is satisfied that it is necessary or expedient so to do in the public interest, it may, by notification in the Official Gazette, make an exemption, reduction in rate or other modification in respect of income-tax in favour of any class of persons specified in sub-section (2) or in regard to the whole or any part of the income of such class of persons or in regard to the status in which such class of persons or the members thereof are to be assessed on their income from the business referred to in clause (a) of sub-section (2):

Provided that the notification for modification in respect of the status may be given effect from an assessment year beginning on or after the 1st day of April, 1993.

Section 293A(2) of Income Tax Act

The persons referred to in sub-section (1) are the following, namely :—

  • (a) persons with whom the Central Government has entered into agreements for the association or participation of that Government or any person authorised by that Government in any business consisting of the prospecting for or extraction or production of mineral oils;
  • (b) persons providing any services or facilities or supplying any ship, aircraft, machinery or plant (whether by way of sale or hire) in connection with any business consisting of the prospecting for or extraction or production of mineral oils carried on by that Government or any person specified by that Government in this behalf by notification in the Official Gazette; and
  • (c) employees of the persons referred to in clause (a) or clause (b).

Section 293A(3) of Income Tax Act

Every notification issued under this section shall be laid before each House of Parliament.

Explanation: For the purposes of this section,—

  • (a) “mineral oil” includes petroleum and natural gas;
  • (b) “status” means the category under which the assessee is assessed as “individual”, “Hindu undivided family” and so on.


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