Income Tax exemption below Section 54 to Section 54GB: In view of the troubles faced by taxpayers due to the second wave of the Covid-19 pandemic across the nation, the Central Government has extended the timeline for claiming a tax deduction on the investment made in a residential residence till September 30. The time to invest in a residential residence for tax deduction has been additional extended for more than 3 months. The investment essential to be made on or just after April 1 can now be made till September 30.
“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 1st April, 2021 to 29th September 2021 (both days inclusive), may be completed on or before 30th September 2021,” the Ministry of Finance mentioned in an official statement on Friday (June 25, 2021).
Section 54 and section 54GB of the Income Tax Act 1962 provide for exemption from extended term capital gains in case of an person or HUF readily available on reinvestment of capital gains and reinvestment of sales proceeds respectively.
As per Section 54 of the IncomeTax Act, you can avail tax exemptions from Capital Gains on promoting a residential house if you re-invest it for acquire or building of a residential house. Under section 54GB of the Income Tax Act, the exemption is supplied from capital acquire arising out of the transfer of a residential house if you invest the quantity for subscribing to the equity shares of the eligible enterprise.
The Union Budget 2019 had extended the applicability of capital acquire exemption below Section 54. It permitted the acquire or building of two residential homes if the the acquire is much less than Rs 2 crore. A taxpayer can exercising this alternative only after. Earlier, previously one acquire or building was permitted.
The Central Government has also extended quite a few other timelines, like PAN-Aadhaar linking.