Budget 2020 exempts income of ISPRL from tax
NEW DELHI: After exempting foreign companies, the Budget 2020-21 has exempted the income of Indian Strategic Petroleum Reserves Ltd (ISPRL) from taxes on transaction of crude oil stored in the underground caverns it built as country’s strategic stockpile. In 2017, the government had exempted foreign companies from paying income tax on the sale of oil they store in India’s strategic oil reserves.
According to a budget 2020-21 document, the income of ISPRL will be exempt from taxes on the transaction of crude oil stored in its strategic caverns, provided the company replenishes the removed fuel within three years.
Tax changes on ISPRL will be effective April 1.
The then Finance Minister Arun Jaitley had in his Budget for 2017-18 exempted income of a foreign company, which books capacity in the strategic storages, from the sale of leftover stock.
