Dispute Resolution Scheme:
The Central Board of Direct Taxes (CBDT) has introduced the Dispute Resolution Scheme (e-DRS), 2022, as a streamlined and efficient platform for taxpayers to resolve their income tax disputes.
- Dispute Resolution Scheme aims to reduce litigation and provide a faster and more cost-effective resolution for taxpayers.
- This initiative, established under section 245MA of the Income-tax Act, 1961, will allow taxpayers to resolve disputes electronically through Dispute Resolution Committees (DRCs).
- Taxpayers who meet certain conditions specified in section 245MA can apply for dispute resolution.
- This includes cases where the disputed amount does not exceed 10 lakh and the taxpayer’s income for the relevant year is below Rs. 50 lakh.
- The dispute must not involve information from searches or international agreements.
- The DRC, established in all 18 regions across the country, can modify orders, reduce penalties, or waive prosecution. They are required to decide within six months of receiving the application.
