Extension of dates of compliances for the purposes of sections 54 to 54GB

CA. Manoj Gupta

In terms of section 54 to 54GB different time limits are provided for exemption from capital gains like period of investment in new asset or in capital gain bonds or deposit in capital gains account scheme.

The Central Board of Direct Taxes (hereinafter referred to as 'the CBDT') had vide Circular No. 12 of 2021 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 or the Income tax Act, 1961 (hereinafter referred to as 'the Act'). By point 7 of the Circular it was provided that the aforementioned compliances for which the last date of such compliance fell between 01st April, 2021 to 29th September 2021 (both days inclusive), may be completed on or before 30th September, 2021.

Now, the CBDT vide Circular No. 01/2023 dated 06-01-2023, has provided 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 01st April, 2021 to 28th February, 2022 (both days inclusive), may be completed on or before 31st March 2023.

So, where transfer of capital asset has been made upto 31-03-2021 for which investment, deposit, payment, acquisition, purchase, construction or such other action was to be completed within 01st April, 2021 to 28th February, 2022 (both days inclusive), may now be completed on or before 31st March 2023.