Tax Book 2023

Oil, Natural Gas and Other Mineral Deposits Chapter- 26

MULTIPLE CHOICE QUESTIONS

Q.1. Profit and gains from exploration and production of petroleum including natural gas from refineries set
up at Dhodak shall be computed under____ Schedule.
(a) 5 th

(b) 1 st

(c) 3 rd

(d) 2 nd

Q.2. Profit and gains from exploration and production of petroleum shall be computed ____ other
businesses.
(a) separately from

(b) together with

(c) none of above

Q.3. Profit and gains from exploration and production of petroleum shall be computed in the manner
applicable to income chargeable under the head ___.

(a) income from other sources

(b) income from property

(c) capital gains

(d) income from business

Q.4. Where a person incurs any expenditure on searching for or discovering and testing a petroleum
deposit or winning access thereto but the search exploration, enquiry upon which expenditure
incurred is given up before the commencement of commercial production, the expenditure shall be
__.

(a) treated as lost

(b) deducted from other incomes of the taxpayer

(c) added to other incomes of the taxpayer

(d) none of above

Q.5. After commencement of commercial production deduction in respect of expenditures in the tax year is
restricted upto ___% of aggregate amount deductible in respect of onshore areas.

(a) 25

(b) 10

(c) 50

(d) 75

Q.6. After commencement of commercial production deduction in respect of expenditures in the tax year is
restricted upto ___% of aggregate amount deductible in respect of offshore areas.
(a) 25

(b) 10

(c) 50

(d) 75