Income tax disputes: Here comes a big relief for the taxpayers. The Central Board of Direct Taxes (CBDT) has launched an e-Dispute Resolution Scheme (e-DRS) to address litigation and provide relief to eligible taxpayers. It should be noted that the Section 245MA of the Income Tax Act also provides for the constitution of Dispute Resolution Committees (DRC).
What is e-DRS?
The CBDT said the e-DRS enables the taxpayers to file an application electronically for dispute resolution to the Dispute Resolution Committees (DRC) designated for the region of Principal Chief Commissioner of Income Tax having jurisdiction over the taxpayer.
Read Also: CBDT launches new e-DRS Scheme to ease tax disputes
How does e-DRS function?
The CBDT said the taxpayer can opt for e-Dispute Resolution against the ‘specified order’ as defined in clause (b) of section 245MA of the Act, which includes an order in which the aggregate sum of variations proposed or made does not exceed Rs 10 lakh and returned income for the relevant assessment year does not exceed Rs 50 lakh. Moreover, such order should not be based on search/surveys or information received under an agreement referred to under section 90 or 90A of the Act.
As per the e-DRS, a DRC may make modification to the variations in the specified order and decide to grant reduction/waiver of penalty and prosecution in accordance with the provision of rule 44DAC of the Income-tax Rules, 1962.
Read Also: 26% of income tax returns are yet to be processed, is your ITR among them? Find out why
How to file application for e-DRS?
The taxpayers can file application for e-DRS in Form No. 34BC referred in rule 44DAB of the Rules, on the e-filing portal of the Income Tax Department, within one month from the date of receipt of specified order. If the appeal has already been filed and is pending before the Commissioner of Income-tax (Appeals), the application for e-DRS, is to be filed on or before September 30, 2024.
If any specified order has been passed on or before August 31, 2024 and the time for filing appeal against such order before CIT (Appeals) has not lapsed, the application for dispute resolution can be filed on or before September 30, 2024.
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