CBDT extends the time limit for compliance to be made for claiming any exemption u/s 54 to 54GB in view of COVID-19
The Central Board of Direct Taxes (CBDT) issued a Circular referring Circular No. 1 of 2023 on 06th January 2023 extending the time limit for compliance to be made for claiming any exemption under section 54 to 54GB of the Income Tax Act, 1961 in view of the then Covid-19 pandemic.
Circular No. 1 of 2023
The Central Board of Direct Taxes (CBDT) had vide Circular No. 12 of 2021 dated 25th June 2021 provided relaxation in respect of certain compliances to be made by taxpayers including inter alia investment, deposit, payment, acquisition, purchase, construction, or such other action, by whatever name called, for the purpose of claiming any exemption under the provisions contained in Section 54 to 54GB of the Income Tax Act, 1961.
By point 7 of the Circular, it was provided that the aforementioned compliances for which the last date of such compliance fell between April 01, 2021, to September 29, 2021 (both days inclusive), may be completed on or before September 30, 2021.
In view of the representations received and on further consideration of the then-prevailing COVID-19 pandemic and resultant restrictions imposed, causing genuine hardship faced by taxpayers in making the aforementioned compliances under the Act, the CBDT, in the exercise of its power u/s 119 of the Act, hereby provides that the compliances to be made by the taxpayers such as investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purpose of claiming any exemption under the provisions contained in section 54 to 54GB of the Act, for which the last date of such compliance falls between April 01, 2021, to February 28, 2022 (both days inclusive), may be completed on or before March 31, 2023.
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