The Central Board of Direct Taxes (CBDT) has launched the e-Dispute Resolution Scheme, 2022 (e-DRS), under Section 245MA of the Income-tax Act, 1961.

This initiative aims to reduce litigation and provide relief to eligible taxpayers.

The e-DRS allows taxpayers to electronically file an application for dispute resolution to the dispute resolution committees (DRCs) established in 18 jurisdictions across the country.

These DRCs are designed to help taxpayers resolve disputes related to specific orders without the need for lengthy legal battles.

Eligibility and conditions

The scheme is available to taxpayers whose disputes involve a variation of up to ₹10 lakh.

The taxpayer’s income for the relevant assessment year should not exceed ₹50 lakh.

The specified order should not result from searches, surveys, or information received under international agreements.

How to apply?

Taxpayers can apply for dispute resolution using Form No. 34BC on the Income Tax Department’s e-filing portal.

The application must be submitted within one month of reveiving the specified order.

For appeals already filed and pending before the Commissioner of Income-tax (Appeals), the application deadline is September 30, 2024.

DRC’s role

The DRC has the authority to modify the variations in the specified order.

It can also grant reductions or waive penalties and prosecution based on the taxpayer’s situation.

The DRC must pass its order within six months from the date the application.

How to file for e-dispute resolution

To access the e-DRS module:

• Log in to the Income Tax portal at https://eportal.incometax.gov.in.
  
  Use your PAN or TAN as the user ID.
• Navigate to: Dashboard -> e-File -> Income Tax Forms -> File Income Tax Forms.
• Select ‘Dispute Resolution Committee in Certain Cases (Form 34BC)’.
• Fill out Form No. 34BC, review your details, and e-verify the form using Aadhar OTP, EVC, or DSC.

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