CBDT Launches e-Dispute Resolution Scheme (e-DRS), 2022, to Reduce Litigation

The Central Board of Direct Taxes (CBDT) has introduced the e-Dispute Resolution Scheme, 2022 (e-DRS), under section 245MA of the Income-tax Act, 1961. This scheme is designed to minimize litigation and provide relief to eligible taxpayers by allowing them to electronically file for dispute resolution through Dispute Resolution Committees (DRC).

The e-DRS is available to taxpayers meeting specific criteria outlined in section 245MA, allowing them to file applications electronically to the DRC within the jurisdiction of the Principal Chief Commissioner of Income-tax (Pr. CCIT). DRCs have been established in all 18 Pr. CCIT regions across India, and their contact details are accessible on the Income Tax Department’s official website.

Taxpayers can opt for e-Dispute Resolution against a ‘specified order,’ where the proposed or actual variations do not exceed ₹10 lakh, and the returned income for the relevant assessment year does not exceed ₹50 lakh. The DRCs can modify the variations and may grant reductions or waivers of penalties and prosecutions within six months of application acceptance.

Taxpayers must submit their e-DRS applications via Form No. 34BC on the Income Tax Department’s e-filing portal within a month from receiving the specified order. If an appeal is pending before the Commissioner of Income-tax (Appeals), applications must be filed by September 30, 2024.

Key Points:

  • Scheme Name: e-Dispute Resolution Scheme (e-DRS), 2022
  • Objective: Reduce litigation, provide relief to taxpayers
  • Eligibility: Taxpayers with variations not exceeding ₹10 lakh and income not exceeding ₹50 lakh
  • DRC Locations: 18 Pr. CCIT regions across India
  • Application Deadline: September 30, 2024
  • Application Form: Form No. 34BC on the e-filing portal

How to Access:

  • Login to the Income Tax portal
  • Navigate to the e-File section and select Form No. 34BC
  • Complete and e-verify the form using Aadhar OTP, EVC, or DSC

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