Assam Governor Exempts Tax on Specific Mineral-Bearing Lands for One Year

The Government of Assam, through a Notification issued by the Finance (Taxation) Department on November 4, 2025, announced a significant tax exemption. This delegated legislation was issued by the Governor of Assam in exercise of the powers conferred by sub-section (2C) of section 3 of the Assam Taxation (On Specified Lands) Act, 1990 (Assam Act No. XII of 1990), referred to as 'the said Act'. The primary purpose of this Notification is to provide relief from the payment of tax on certain categories of land. The Notification specifies that the Governor of Assam has exempted the payment of tax, which is otherwise payable under section 3 of the aforementioned 1990 Act, for lands identified as Coal bearing land, Crude Oil bearing land, Natural Gas bearing land, and Lime Stone bearing land. This exemption is applicable for a defined period, commencing from April 1, 2025, and extending until March 31, 2026. The Notification explicitly states that it shall be deemed to have come into force with effect from April 1, 2025, indicating a retrospective application. This measure directly impacts entities and individuals involved in the extraction and ownership of these specific mineral resources within Assam, temporarily altering their tax obligations under the 1990 Act. The legislation provided: “...the Governor of Assam is hereby pleased to exempt the payment of tax payable under section 3 of the said Act, by Coal bearing land, Crude Oil bearing land, Natural Gas bearing land and Lime Stone bearing land on and from 1st April, 2025 to 31st March, 2026.”

The legislative intent behind this Notification appears to be to offer a temporary financial reprieve to industries engaged in the extraction of critical natural resources such as coal, crude oil, natural gas, and limestone. Prior to this Notification, these specified lands were subject to taxation under section 3 of the Assam Taxation (On Specified Lands) Act, 1990, which imposes a tax on certain categories of land. The present measure addresses the existing statutory framework by introducing a temporary suspension of this tax liability for a specific period. This move could be aimed at stimulating production, reducing operational costs for relevant industries, or responding to particular economic conditions affecting these sectors. By exempting these lands from tax for a year, the government temporarily alters the financial obligations of the entities operating on or owning these resource-rich areas, potentially fostering investment or easing financial burdens. The Notification does not introduce new rights or permanent obligations but rather modifies an existing financial liability for a limited duration, thereby providing a targeted intervention within the state's taxation policy.

Keywords: Assam, tax exemption, mineral land, coal, crude oil, natural gas, limestone, taxation, notification, delegated legislation Geo Tags: India, Assam District: Not Applicable