Overview
The Central Board of Direct Taxes (‘the CBDT’) has issued a circular dated 06.01.2023 wherein they have provided the relaxation with respect to extension of time limit for claiming exemption under section 54 to 54GB of the Income Tax Act, 1961 (‘the Act’) in accordance with the CBDT vide Circular No. 1 of 2023.
Brief Note on Exemption under Section 54 to 54GB of the Act:
To the avail the exemption under the afore-mentioned section with respect to taxability of capital gains arising from the transfer of specified capital assets, the taxpayers are required to make certain purchases, construction, deposit, investments etc. within the prescribed time limits.
Extension of Time Limit:
| Previous Time Limits | Further Extended Time Limits |
| Last date for claiming exemption under section 54 to 54GB of the Act, which falls between 1st April, 2021 to 29th September, 2021 was extended to 30th September, 2021 vide Circular No 12 of 2021 dated 25.06.2021 | Last date for claiming exemption under section 54 to 54GB of the Act, which falls between 1st April, 2021 to 28th February, 2022 may be completed on or before 31st March, 2023 vide Circular No. 1 of 2023 |
