The Central Board of Direct Taxes (CBDT) has introduced a new electronic system, the e-Dispute Resolution Scheme (e-DRS), aimed at simplifying the resolution of Income Tax disputes. Launched in 2022, the e-DRS provides an efficient, time-bound, and litigation-free mechanism for taxpayers to address their disputes with the Income Tax Department.
The e-DRS allows taxpayers to submit their dispute resolution applications electronically through the Income Tax Department’s online portal. This initiative enhances transparency and convenience by enabling taxpayers to engage with Dispute Resolution Committees (DRCs) in 18 jurisdictions across India.
These DRCs offer an alternative to lengthy court proceedings, helping resolve disputes arising from specified orders—although the scheme doesn’t clarify which authorities issue these orders.
To qualify for the e-DRS, the following criteria must be met:
Taxpayers can easily apply for dispute resolution via Form No. 34BC on the Income Tax Department’s e-filing portal. Here’s a step-by-step guide:
For specified orders passed on or before August 31, 2024, where the appeal deadline hasn’t expired, applications can be submitted until September 30, 2024. The e-DRS module is now live and ready for use.
With the introduction of this electronic system, taxpayers can avoid the hassle of protracted legal battles and resolve their Income Tax disputes efficiently and electronically. This initiative by the CBDT is a significant step toward making tax administration more taxpayer-friendly and streamlined.
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