Section 298(1) empowers the Central Government, if any difficulty arises in giving effect to the Act, to do by general or special order anything not inconsistent with its provisions that appears necessary or expedient to remove the difficulty. Sub-section (2) allows such an order to provide adaptations or modifications subject to which the repealed 1922 Act applies to assessments for assessment year 1961-62 or earlier.
Sub-section (3) gave a separate power to remove difficulties in giving effect to the Act as amended by the Direct Tax Laws (Amendment) Act, 1987, with the proviso that no such order shall be made after the expiration of three years from 1 April 1988. Every order under sub-section (3) must be laid before each House of Parliament.
Operative consequences
Orders under sub-section (1) must not be inconsistent with the Act's provisions.
No order can now be made under sub-section (3), as its three-year window from 1 April 1988 has closed.
Orders made under sub-section (3) were required to be laid before Parliament.
Status
Section 298(1) and (2) remain operative for assessment year 2026-27; sub-section (3) is time-limited and its period has expired. The Finance Act, 2026 did not amend this section.
The 1961 Act governs assessment year 2026-27 and earlier; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 535, which permits orders only within three years from 1 April 2026.
Function in the statutory architecture
Section 298(1) empowers the Central Government, if any difficulty arises in giving effect to the Act, to do by general or special order anything not inconsistent with its provisions that appears necessary or expedient to remove the difficulty. Sub-section (2) allows such an order to provide adaptations or modifications subject to which the repealed 1922 Act applies to assessments for assessment year 1961-62 or earlier.
Sub-section (3) gave a separate power to remove difficulties in giving effect to the Act as amended by the Direct Tax Laws (Amendment) Act, 1987, with the proviso that no such order shall be made after the expiration of three years from 1 April 1988. Every order under sub-section (3) must be laid before each House of Parliament.
Operative consequences
Status
Section 298(1) and (2) remain operative for assessment year 2026-27; sub-section (3) is time-limited and its period has expired. The Finance Act, 2026 did not amend this section.
The 1961 Act governs assessment year 2026-27 and earlier; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 535, which permits orders only within three years from 1 April 2026.