Introduction

Are you looking to understand about How Power to Remove Difficulties Section 298 of Income Tax Act 1961 Can Benefit Taxpayers ? 

This detailed article will tell you all about How Power to Remove Difficulties Section 298 of Income Tax Act 1961 Can Benefit Taxpayers.

Hi, my name is Shruti Goyal, I have been working in the field of Income Tax since 2011. I have a vast experience of filing income tax returns, accounting, tax advisory, tax consultancy, income tax provisions and tax planning.

The Income Tax Act 1961 is a comprehensive piece of legislation that governs the taxation of income in India. It lays down the rules and regulations for the assessment, collection, and recovery of income tax. However, as with any complex legal framework, there are bound to be difficulties that arise during its implementation. To address these difficulties, the government has been given the power to remove them under section 298 of the Income Tax Act 1961.

This section is a powerful tool that can be used to provide relief to taxpayers who may be facing challenges in complying with the provisions of the act. In this blog, we will explore how the power to remove difficulties under section 298 can benefit taxpayers.

What is the Power to Remove Difficulties Section 298 of Income Tax Act 1961?

Section 298 of the Income Tax Act 1961 empowers the government to make rules for removing any difficulties that arise in the implementation of the act. This power can be exercised by the Central Board of Direct Taxes (CBDT), which is the apex body for the administration of direct taxes in India.

The CBDT can issue orders, instructions, and circulars to remove any difficulties that may arise in the implementation of the act. These orders can be issued retrospectively or prospectively and can have the effect of modifying the provisions of the act.

How Does Section 298 Benefit Taxpayers?

The power to remove difficulties under section 298 can benefit taxpayers in several ways:

1. Provides Relief in Case of Unforeseen Circumstances

There may be situations where taxpayers are unable to comply with the provisions of the Income Tax Act 1961 due to unforeseen circumstances. For example, a natural disaster may have destroyed the taxpayer’s records, making it difficult for them to file their tax returns. In such cases, the government can use the power under section 298 to provide relief to the taxpayer.

2. Ensures Consistency in Implementation of the Act

The Income Tax Act 1961 is a complex piece of legislation that can be difficult to interpret and implement. The power to remove difficulties under section 298 ensures that there is consistency in the implementation of the act across the country. This can help to reduce confusion and ensure that taxpayers are not subjected to different interpretations of the law in different parts of the country.

3. Facilitates Ease of Doing Business

The power to remove difficulties under section 298 can also help to facilitate ease of doing business in India. By providing relief to taxpayers who may be facing challenges in complying with the provisions of the act, the government can create a more business-friendly environment. This can help to attract investment and promote economic growth.

FAQs

Q1. Can the Power to Remove Difficulties Section 298 be Used Retroactively?

Yes, the power to remove difficulties under section 298 can be used retrospectively. This means that the government can issue orders, instructions, and circulars that have the effect of modifying the provisions of the Income Tax Act 1961 with retrospective effect.

Q2. Can the Power to Remove Difficulties Section 298 be Used Prospectively?

Yes, the power to remove difficulties under section 298 can be used prospectively. This means that the government can issue orders, instructions, and circulars that have the effect of modifying the provisions of the Income

Tax Act 1961 with prospective effect.

Q3. Can Taxpayers Request Relief Under Section 298?

No, taxpayers cannot request relief under section 298 of the Income Tax Act 1961. This power can only be exercised by the government through the CBDT.

Q4. Are There Any Limits to the Power to Remove Difficulties Section 298?

The power to remove difficulties under section 298 is not unlimited. The government cannot use this power to modify the substantive provisions of the Income Tax Act 1961. The power can only be used to remove difficulties that arise in the implementation of the act.

Conclusion

Section 298 of the Income Tax Act 1961 is a powerful tool that can be used to provide relief to taxpayers who may be facing challenges in complying with the provisions of the act. The power to remove difficulties can be used retrospectively or prospectively and can have the effect of modifying the provisions of the act. By using this power, the government can ensure consistency in the implementation of the act, provide relief in case of unforeseen circumstances, and facilitate ease of doing business in India.

It is important to note that the power to remove difficulties under section 298 is not unlimited. The government cannot use this power to modify the substantive provisions of the Income Tax Act 1961. Taxpayers cannot request relief under this section and the power can only be exercised by the government through the CBDT.

In conclusion, the power to remove difficulties under section 298 of the Income Tax Act 1961 can be a valuable tool for both taxpayers and the government. By using this power judiciously, the government can create a more business-friendly environment, promote economic growth, and ensure that taxpayers are not unduly burdened by the complexities of the act.