CBDT has further extended/relaxed the compliance deadline for claiming exemption under sections 54 to 54GB of the Income Tax Act, 1961, in light of the hardship experienced by taxpayers as a result of COVID-19 restrictions, vide Circular 1/2023.
In Circular 12/2021, the CBDT had relaxed certain compliance requirements for taxpayers, such as the timeline for investments for claiming exemption under Sections 54 to 54GB of the Income-tax Act of 1961. Item 7 of the Circular rescheduled the compliances that were due between 01/04/2021 and 29/09/2021 and established a new deadline of 30/09/2021.
Recently, the CBDT has further extended the aforementioned relaxation period until February 28, 2022, and a new deadline of January 31, 2023 has been set for required compliances.
In view of the representations received and on further consideration of the hardship faced by taxpayers due to the then prevailing COVID-19 and resultant restrictions in making such compliances u/s 54 to 54GB of the Income Tax Act, 1961, the CBDT has provided further relaxation in respect of certain compliances to be made by taxpayers including investments, etc. for claiming exemption u/s 54 to 54GB of the Income-tax Act, 1961, vide Circular 12/2021. Revised compliance period the purpose of relaxation under item 7 of such Circular is 01/04/2021 to 28/02/2022 with the new timeline for compliance as 31/0/2023.
In light of the representations received and the hardship experienced by taxpayers as a result of COVID-19 restrictions, the CBDT has provided further relaxation in respect of certain compliances to be made by taxpayers, such as investments, for claiming exemption u/s 54 to 54GB of the Income-tax Act, 1961, vide Circular 1/2023. The revised compliance period for the purpose of relaxation under Circular 12/2021 item 7 is now 01/04/2021 to 28/02/2022, with a new compliance deadline of 31/03/2023.
CBDT Income Tax Circular 1/2023 dt. 06/01/2023: Compliance Deadline Relaxed for Claiming IT Exemption u/s 54-54GB