The Central Board of Direct Taxes (CBDT) has introduced the Dispute Resolution Scheme (e-DRS), 2022, designed to provide a streamlined, electronic platform for resolving income tax disputes.
About Dispute Resolution Scheme (e-DRS):
- The e-Dispute Resolution Scheme (e-DRS) was launched by the CBDT to minimize litigation and offer a quicker, more cost-effective resolution process for eligible taxpayers.
- The scheme was established under Section 245MA of the Income-tax Act, 1961.
Eligibility Criteria:
- The disputed amount must not exceed Rs. 10 lakh.
- The taxpayer’s income for the relevant year should be below Rs. 50 lakh.
- The dispute must not involve information from searches or international agreements.
Process:
- Taxpayers must submit the e-DRS application within one month from the date of receiving the specified order.
- Dispute Resolution Committees (DRCs) have been constituted across 18 regions in India.
- The DRCs have the authority to modify orders, reduce penalties, or waive prosecution.
- The DRC is required to resolve the dispute within six months of receiving the application.
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Frequently Asked Question:
Who is eligible for the e-DRS?
Taxpayers with disputed amounts below Rs. 10 lakh and income under Rs. 50 lakh are eligible, provided the dispute does not involve searches or international agreements.
What is Section 245MA of the Income-tax Act, 1961?
Section 245MA establishes the legal framework for the e-Dispute Resolution Scheme.