Section 535
Section 535: removal of difficulties
Section 535 is a standard transitional safety-valve: if a difficulty comes up in giving effect to the Income-tax Act, 2025, the Central Government can make an order to remove it - including adapting how the old 1961 Act applies to assessments for the tax year ending 31st March, 2026 or earlier - but only within a three-year window, and every such order must be laid before Parliament.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
General power to remove difficulties
"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 such provisions which appears to it to be necessary or expedient for the purpose of removing the difficulty."
Adapting the old Act for earlier tax years
In particular, such an order 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 31st March, 2026, or any earlier tax year.
Time limit and Parliamentary oversight
| Requirement | Detail |
|---|---|
| Time limit | No order under sub-section (1) can be made after the expiration of three years from 1st April, 2026 |
| Parliamentary laying | Every order made under Section 535 must be laid, as soon as may be after it is made, before each House of Parliament |
Frequently asked questions
How long can the Central Government use Section 535 to remove difficulties?
Only up to three years from 1st April, 2026 - no order can be made after that.
Can an order under Section 535 change how the old Income-tax Act, 1961 applies?
Yes, for assessments relating to the tax year ending 31st March, 2026, or any earlier tax year - sub-section (2) specifically allows adaptations or modifications for that purpose.
Is an order under Section 535 reviewed by Parliament?
Yes - every such order must be laid before each House of Parliament as soon as may be after it is made.
Related sections
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Talk to our tax team about this sectionLast updated 9 September 2026