Section 29 of The Interest-tax Act, 1974
1[(1)] If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the commencement of this Act. 2[(2) If any difficulty arises in giving effect to the provisions of this Act, as amended by the Finance (No.2) Act, 1991(49 of 1991), the Central Government may, by order, do anything not inconsistent with such provisions for the purpose of removing the difficulty: Provided that no such order shall be made after the expiry of two years from the 1st day of October, 1991.
- (3)Every order made under sub-section (2) shall be laid before each House of Parliament.]
Summary
- If a problem arises in applying the rules of the Act, the Central Government can issue an order to remove the difficulty.
- Any order made to fix a difficulty cannot contradict the actual provisions of the Act itself.
- This power had a strict time limit of two years starting from the commencement of the original Act.
- A separate two-year window was provided for removing difficulties specifically related to the 1991 amendments, starting from October 1, 1991.
- Any order made to resolve difficulties regarding the 1991 amendments must be presented before each House of Parliament.
Practical examples
FAQ
1. Can the government use this section to completely rewrite a tax rule if they do not like it?
No, any order made to remove a difficulty must not be inconsistent with the provisions of the Act.
2. Can the government issue these clarifying orders today to fix a modern problem?
No, the power expired two years after the Act started, and a second window expired two years after October 1, 1991.
3. Does Parliament get to see these orders?
Yes, orders made specifically regarding the 1991 amendments must be laid before each House of Parliament.
Test yourself
Q1.Under Section 29 of The Interest-tax Act, 1974, what is the primary legal restriction on an order made to remove a difficulty?
Q2.Under Section 29 of The Interest-tax Act, 1974, what was the strict deadline for making an order to remove a difficulty arising from the original Act?
Q3.Under Section 29 of The Interest-tax Act, 1974, what specific event triggered a second operational window for making orders to remove difficulties?
Q4.Under Section 29 of The Interest-tax Act, 1974, what procedural step is strictly required for orders made under sub-section (2) regarding the 1991 amendments?