The Central Board of Direct Taxes ( “CBDT” ) has issued a circular 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.
The CBDT had vide Circular No. 12 of2021 dated 25.06.2021 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 orthe Income-tax Act. By point 7 of the Circular, it was provided that the aforementioned compliances for which the last date of such compliance fell between 1st April 2021 to 29th September 2021, may be completed on or before 30th September 2021.
The CBDT circular issued on Friday stated that “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 under Section 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 54 OB of the Act, for which the last date of such compliance falls between 01 April 2021 to 28th February 2022, may be completed on or before 31st March 2023.”
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