« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  Handling cash windfall... Centre fine-tunes MCA to woo foreign investors... » Centre may grant tax sops to energy sector November, 01st 2006 The government is considering granting tax incentives to the oil and gas sector. Some of the incentives under consideration include a 10-year tax holiday under Section 80 IA of the Income-Tax Act for gas pipelines, storage terminals and other related facilities for transportation and storage of petroleum products.    The demand was raised at a recent meeting of Assocham with revenue department officials.    The contention of the industry is that gas pipelines and associated infrastructure are important to ensure quick and timely distribution of petroleum products.    Industry sources said there are indications that the notification granting tax breaks to the oil and gas sector may be issued soon.    Meanwhile, FICCI has, in its pre-budget wish list, sought inclusion of petrol and petroleum under the value added tax (VAT) regime with uniform VAT rate across all states.    The maximum VAT rate should not be over 12.5 per cent and the difference among states should not be more than 4 to 5 per cent, the Chamber has said.    The chamber has also demanded that declared goods status should be granted to liquid natural gas (LNG). LNG competes with coal which enjoys declared goods status, therefore attracting a maximum of 4 per cent sales tax.    Non-conventional energy could receive a boost in the Budget for the next financial year with incentives expected for the hydrocarbon sector related to exploration, extraction and production of mineral oils.    Under sub-section (9) of Section 80-IB, tax holiday is provided to an undertaking in the hydrocarbon sector which begins commercial production or refining of mineral oil equal to 100 per cent of the profits for 7 consecutive years including the initial assessment year.    However, in the initial few years there is hardly any profit to take advantage of the tax holiday.    FICCI has urged the government to give undertakings the option of claiming tax holiday for seven consecutive years at any time during the first 15 years after the commencement of commercial production.    Industry bodies have also demanded that weighted deduction of the actual expenses incurred by the assessee in drilling and exploration activities should be raised to 150 per cent from 100 per cent at present.