Taxpayers eligible for e-DRS can file their application electronically by using Form No. 34BC on the Income Tax Department’s e-filing portal.
The Central Board of Direct Taxes (CBDT) has introduced the e-Dispute Resolution Scheme (e-DRS) 2022 under Section 245MA of the Income-tax Act, 1961, to help taxpayers resolve disputes more efficiently and reduce litigation. The scheme is designed to provide relief to eligible taxpayers by offering an electronic platform to apply for dispute resolution through designated Dispute Resolution Committees (DRCs) across the country.
Key Features of e-DRS 2022
1. Eligibility Criteria:
Taxpayers who meet specific conditions outlined in Section 245MA of the Income-tax Act are eligible to file applications for dispute resolution under e-DRS. These conditions include:
- The disputed amount in the order should not exceed Rs. 10 lakh.
- The returned income for the relevant assessment year should not exceed Rs. 50 lakh.
- The dispute should not involve any order based on search/survey actions or information received under an agreement under Sections 90 or 90A of the Income-tax Act.
2. Formation of Dispute Resolution Committees (DRCs):
To facilitate the resolution process, DRCs have been established across 18 jurisdictional regions, each overseen by the Principal Chief Commissioner of Income-tax (Pr. CCIT). The complete list of these DRCs, along with their contact information, can be accessed at the Income Tax Department’s official website-https://www.incometax.gov.in/iec/foportal/help/all-topics/statutory-forms/file-statutory-form/popular-form/form-34-BC.
3. Filing Applications for Dispute Resolution:
Eligible taxpayers can file their application electronically by using Form No. 34BC on the Income Tax Department’s e-filing portal. The process is simple and requires taxpayers to:
- Log in to their account using their PAN/TAN.
- Navigate to the ‘e-File’ section and select ‘File Income Tax Forms.’
- Choose the ‘Dispute Resolution Committee in Certain Cases (Form 34BC)’ option.
- Review and submit the form, which can be verified using Aadhaar OTP, EVC, or DSC.
4. Filing Deadlines:
If the specified order is passed on or before August 31, 2024, and the time for appeal before the Commissioner of Income-tax (Appeals) has not yet lapsed, taxpayers must file the application for dispute resolution on or before September 30, 2024.
For cases where an appeal is already pending before CIT(Appeals), the e-DRS application should also be filed by September 30, 2024.
5. Dispute Resolution Process:
The DRC, after reviewing the case, may make necessary modifications to the variations mentioned in the specified order. It can also grant a reduction or waiver of penalties and prosecution, in accordance with Rule 44DAC of the Income-tax Rules, 1962. The DRC is required to pass its order within six months from the end of the month in which the application is admitted.
Simplifying Dispute Resolution
This initiative by CBDT is aimed at simplifying the tax dispute resolution process and reducing unnecessary litigation. By offering a streamlined digital platform, the e-DRS makes it easier for taxpayers to resolve their disputes efficiently while minimizing costs and time spent on litigation.
To learn more and access the e-DRS module, taxpayers can visit the official Income Tax e-filing portal at https://eportal.incometax.gov.in.
To Access the related Press release of the MoF Click Here
Also Read: Income Tax Compliance Calendar for September 2024: Key Deadlines
READ MORE
CBDT Forms Committee to Revise Income Tax Act 1961, Plans to Eliminate ‘Sunset’ Clauses
Simultaneous Deduction Allowed under u/s. 54 and 54F for the Same Asset: ITAT Ruling