CBDT Rolls Out e-Dispute Resolution Scheme
CBDT Rolls Out e-Dispute Resolution Scheme The Central Board of Direct Taxes (CBDT) has launched the e-Dispute Resolution Scheme (e-DRS), 2022, aimed at simplifying the process of resolving tax disputes and reducing litigation. With the rollout of Dispute Resolution Committees (DRCs) across the country, this new initiative provides taxpayers with a digital mechanism to resolve disputes electronically. The e-DRS is part of the government’s efforts to improve transparency, reduce legal delays, and offer relief to taxpayers burdened by disputes.
In this blog, we’ll explore the key highlights of the e-DRS and provide a step-by-step guide for filing your application under this scheme.
What is e-Dispute Resolution Scheme (e-DRS)?
The e-Dispute Resolution Scheme (e-DRS) is established under Section 245MA of the Income-tax Act, 1961. It allows taxpayers to resolve tax disputes electronically, offering an alternative to prolonged legal processes. CBDT Rolls Out e-Dispute Resolution Scheme The Dispute Resolution Committees (DRCs) have been set up in all 18 jurisdictional Principal Chief Commissioner of Income-tax (Pr. CCIT) regions across India.
This scheme enables eligible taxpayers to resolve disputes against a “specified order” as defined under Section 245MA of the Act.
Eligibility for e-DRS
A taxpayer is eligible to apply for e-DRS if:
- The total disputed amount (variation) in the specified order is ₹10 lakh or less.
- The taxpayer’s returned income for the relevant assessment year does not exceed ₹50 lakh.
- The order is not based on searches or surveys conducted under the Income-tax Act or on information received under international agreements (Sections 90 and 90A).
Key Benefits of e-DRS
- Simplified dispute resolution: CBDT Rolls Out e-Dispute Resolution Scheme Taxpayers can avoid prolonged legal battles by using the e-DRS platform.
- Waiver or reduction of penalties: The DRC has the power to reduce or waive penalties and prosecution charges under Rule 44DAC of the Income-tax Rules, 1962.
- Faster resolution: The DRC must pass its order within six months from the date of application admission.
Important Deadlines
- The application for e-DRS must be filed within one month of receiving the specified order.
- If an appeal is pending before the Commissioner of Income-tax (Appeals), the taxpayer must file the e-DRS application on or before 30th September 2024.
- For orders passed on or before 31st August 2024, taxpayers can file their dispute resolution application by 30th September 2024 if the time for filing an appeal has not lapsed.
Step-by-Step Guide to Filing e-DRS
Step 1: Log in to the Income Tax e-Filing Portal
- Visit the Income Tax e-Filing portal.
- Log in using your PAN/TAN as the User ID along with your password.
Step 2: Navigate to the e-DRS Application Form
- After logging in, go to Dashboard.
- Select e-File from the menu.
- Click on Income Tax Forms and then choose File Income Tax Forms.
Step 3: Select Dispute Resolution Committee (Form 34BC)
- Under the section for “Persons not dependent on any source of income,” choose Dispute Resolution Committee in Certain Cases (Form 34BC).
Step 4: Fill Form 34BC
- Enter the details of the specified order you are contesting.
- Make sure to provide accurate information regarding the variations in the specified order, your returned income, and other relevant details.
Step 5: Review the Form
- Once you’ve filled in the form, review all the details carefully. CBDT Rolls Out e-Dispute Resolution Scheme Ensure that there are no discrepancies in the information you have provided.
Step 6: E-Verify the Application
- After reviewing, proceed to E-Verify the form using one of the following options:
- Aadhar OTP: Enter the OTP sent to your registered mobile number.
- Electronic Verification Code (EVC): Use the EVC sent to your registered email or mobile number.
- Digital Signature Certificate (DSC): If applicable, use a valid DSC to verify the form.
Step 7: Submit the Form
- Once you’ve completed the e-verification, submit the form. A confirmation receipt will be generated, which you should save for future reference.
What Happens Next?
CBDT Rolls Out e-Dispute Resolution Scheme After submitting the e-DRS application, the Dispute Resolution Committee will review your case. The DRC has the authority to make modifications to the disputed order and decide on a waiver or reduction of penalties or prosecution. They are required to pass their order within six months from the end of the month in which your application is admitted. CBDT Rolls Out e-Dispute Resolution Scheme
Conclusion
CBDT Rolls Out e-Dispute Resolution Scheme The e-Dispute Resolution Scheme (e-DRS), 2022, is an excellent opportunity for eligible taxpayers to resolve disputes quickly, efficiently, and without lengthy court proceedings. By following the above steps, you can easily file your application for e-DRS and potentially benefit from reduced penalties and faster dispute resolution.
The government’s continuous efforts toward minimizing litigation demonstrate a commitment to improving taxpayer compliance and creating a more taxpayer-friendly system. CBDT Rolls Out e-Dispute Resolution Scheme Make sure to file your application within the specified timelines to take full advantage of the scheme.
For more information on the e-Dispute Resolution Scheme, visit the official income tax website.
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