Removal of difficulties
[As per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 535(1) of Income Tax Act 2025
535(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by general or special order, do anything not inconsistent with the provisions which appears to it to be necessary or expedient for the purpose of removing the difficulty.
Section 535(2) of Income Tax Act 2025
535(2) In particular, and without prejudice to the generality of the foregoing power, any order referred to in sub-section (1) may provide for the adaptations or modifications subject to which the Income-tax Act, 1961 shall apply in relation to the assessments for the tax year ending on the 31st March, 2026, or any earlier tax year.
Section 535(3) of Income Tax Act 2025
535(3) No order under sub-section (1) shall be made after the expiration of three years from the 1st April, 2026.
Section 535(4) of Income Tax Act 2025
535(4) Every order made under this section shall be laid, as soon as may be, after it is made, before each House of Parliament.
Here are some possible FAQs related to the “Removal of Difficulties” provision under Section 535 of the Income Tax Act, 2025:
FAQs on Section 535 – Removal of Difficulties
What is the purpose of Section 535 of the Income Tax Act, 2025?
Section 535 allows the Central Government to issue orders to remove difficulties in implementing the provisions of the Income Tax Act, 2025. This ensures a smooth transition from the previous tax regime to the new law.
What powers does the Central Government have under Section 535(1)?
Under Section 535(1), the Central Government can issue general or special orders to resolve difficulties in giving effect to the Act, provided such orders are not inconsistent with its provisions.
How does Section 535(2) impact previous assessments?
Section 535(2) allows the government to issue orders specifying how the provisions of the Income-tax Act, 1961, will apply to assessments for the tax year ending on March 31, 2026, or earlier tax years.
Is there a time limit for issuing such orders?
Yes, as per Section 535(3), no order under this section can be made after April 1, 2029, which is three years from April 1, 2026.
Are the orders issued under Section 535 subject to parliamentary oversight?
Yes, according to Section 535(4), every order made under this section must be presented before both Houses of Parliament as soon as possible after issuance.
Does Section 535 override other provisions of the Income Tax Act, 2025?
No, the orders issued under this section must align with the provisions of the Act and cannot override them.
Who can benefit from the provisions of Section 535?
Taxpayers, tax authorities, and other stakeholders may benefit from the clarifications and modifications introduced through orders under this section to address difficulties in implementation.
