CBDT Cir. No.1/2023: Deadline Extension for CG Tax Waiver on Properties

The income tax department has extended the deadline for a variety of compliances linked to the long-term capital gains tax exemption till March 31, 2023, which will be helpful to many taxpayers.

In order to claim any exemption under the terms of Section 54 to 54GB of the Income-tax Act, 1961, the Central Board of Direct Taxes (CBDT) had, in June 2021, given a relaxation for certain compliances to be made by taxpayers, such as investment, deposit, payment, acquisition, purchase, and construction.

The circular said that persons who had to invest in bonds or another property between April 1, 2021, and September 29, 2021, in order to save long-term capital gains from certain transactions might do so by September 30, 2021.

This deadline will now be extended by the Central Board of Direct Taxes (CBDT) until March 31, 2023. “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”. This is the second such extension made available under the CBDT’s provision.

According to experts, this will provide taxpayers more time to make choices and investments to take advantage and reduce capital gains tax.

The relief will provide taxpayers with the chance to assess their capital gains investment in possibilities that are now open to them but weren’t or could only be pursued with certain restrictions a year ago owing to the pandemic.

Section 54 of the Income Tax Act addresses capital gains tax and the ability to obtain an exemption from the sale of a residential property by either buying another residential property or acquiring certain bonds and other financial instruments.

Both individuals and HUFs are eligible for the exemption. The residential property must be bought either a year before or within two years of the sale of the preceding property. For new property development, there is a three-year opportunity to take advantage of the exemption.

Arpit Kulshrestha

Arpit Kulshrestha seeks higher interests in financial services, taxation, GST, I-T, etc. Writes articles with depth knowledge and is extensive for the same. The resources provide effective articles for the products of SAG infotech which provides taxation and IT software. Writing from observations and researching makes his articles virtuous.

Recent Posts

No GST Returns Will Be Accepted If Filed More Than 3 Years Past Their Due Date

An advisory has been released by the Goods and Services Tax Network (GSTN) which notifies…

6 hours ago

Delhi HC: Two Judgment Orders Against One SCN Cannot Be Accepted for the Same Period

It was cited by the Delhi HC that the two adjudication orders against one SCN…

8 hours ago

CBDT Allows Electronic Filing of Forms 3CEDA and 3C-O Via Notification No. 5/2024

The Central Board of Direct Taxes (CBDT) in an update for the taxpayers via the…

9 hours ago

October 2024 Records the 2nd Highest GST Collection, Driven by Domestic Sales

In October, Gross GST collection surged to 9% to Rs 1.87 lakh crore, the second…

11 hours ago

UP AAR: GST Will Be Levied on the Installation of Electricity Distribution Systems by DISCOMs

Goods and Services Tax (GST) is to get paid on the procurement of materials and…

2 days ago

Bombay HC Quashes Rejection Order for Voluntary GST Cancellation Due to Lack of Stated Reasons

The Bombay High Court carried that as the revocation orders for the registration cancellation on…

3 days ago