The Central Board of Direct Taxes (CBDT) has issued the e-Dispute Resolution Scheme, a major initiative in clearing the mechanism for disposal of tax disputes in India. Originally notified in 2022, the scheme aims at reducing litigation and offering a quicker and less cumbersome method for sorting out income tax assessment disputes to the taxpayers.
Now, taxpayers can file the applications in e-DRS by September 30, 2024 for orders passed on or before August 31, 2024.
What Is e-DRS?
The e-DRS provides an online platform for taxpayers to make applications for dispute resolution through the electronic filing portal of the income tax department. The applications filed are dealt with by the dispute resolution committees (DRCs) formed across 18 jurisdictions in India. The DRCs will deal with and finalise disputes arising out of ‘specified orders’ passed by authorities of competent jurisdiction or government agencies.
Eligibility Criteria
A taxpayer can only opt for the e-dispute resolution against the ‘specific order’, defined in the clause (b) of Section 245MA of the Income-tax Act, 1961, when the aggregate of the difference in the return filed for the assessment year does not exceed Rs 10 lakh. Besides, the income returned by the assessee in the assessment year should not be more than Rs 50 lakh. Further, every dispute arising from search or survey operations, or information received under any agreement referred to in the sections 90 or 90A of the Income-tax Act, 1961 is not eligible under the scheme.
Ease Of Application
The application process is simple and easy. Here are the steps.
Visit the income tax portal
Log in to your account using Permanent Account Number (PAN) or Tax Deduction Account Number (TAN) as your user ID
Click on Dashboard, then go to ‘e-files’
Under ‘e-files’, you will see a section called ‘Income Tax Forms’; click on it
Upon landing there, click on ‘File Income Tax Forms’
Under ‘Persons not dependent on any source of income’ you will find the ‘Dispute Resolution Committee in Certain Cases’ or Form no. 34BC
Fill up ‘Form no. 34BC’
After that, you will be able to review all the details
Finally, you will have to e-Verify the Form no. 34BC using Aadhaar OTP/EVC/DSC.
The application has to be made within one month from the date of receipt of the specified order. In the case of appeals already pending before the commissioner of income-tax (Appeals), the last date for application shall be September 30, 2024.
Once filed, the DRCs shall have to pronounce their decision within 6 months from the last day of the month in which the application is filed.
Utilisation
Taxpayers can file the applications in e-DRS by September 30, 2024, for orders passed on or before August 31, 2024. The scheme has come into operation with applications already accepted at the portal of the income tax department.
This is one initiative that will go a long way in simplifying the resolution of disputes regarding tax burdens, litigation burdens, and facilitate the resolution of disputes related to tax in a far more efficient manner.
