CBDT has vide circular no. 01/2023 Dt. 06.01.2023 extended the time limit for making compliance u/s 54 to 54GB of the Act till 31.03.2023. Relevant extract of the circular is as under:
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 01 April, 2021 to 29 September 2021 (both days inclusive), may be completed on or before 30′” September, 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 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 01st April, 2021 to 28th February, 2022 (both days inclusive), may be completed on or before 31st March 2023.
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Do you think that the circular is helpful because in our opinion that this relaxation is a bit late as it is covering the compliance which was required to be made between 01.04.2021 to 28.02.2022 and people who were required to construct house or deposit the amount in Capital gain account scheme and if they are not able to do the same within the prescribed time they would have either paid tax or deposit the amount in the account and hence this circular would be of no use for most of us now.
Further, the due date for filing revised return or belated return is now over for FY 2021-22 and one cannot claim exemption in updated return and hence this circular can only help assessee who have already committed offence or not fulfilled the conditions.
What are your views?