To bring relief to some taxpayers and reduce litigation, The Central Board of Direct Taxes (CBDT) has notified the Electronic Dispute Resolution Plan, 2022, under which a taxpayer can seek a resolution in cases where the department has issued an order requesting additional information. fiscal responsibility of an amount less than ₹10 lakhs.
Under this provision, taxpayers may, subject to meeting certain criteria, electronically file a dispute resolution application with the Dispute Resolution Committee (DRC) designated for the region of the principal chief commissioner of income tax having jurisdiction over the taxpayer.
To this end, DRCs have been established in the 18 jurisdictional regions of the Pr CCIT throughout the country. income tax portal provides a list of such DRCs along with their email addresses.
When can taxpayers opt for dispute resolution?
Under e-DRS, a taxpayer may opt for the Electronic dispute resolution system against the ‘specified order’ which includes an order in which the sum total of proposed or implemented variations is less than ₹10 lakh and the income returned for the relevant assessment year does not exceed ₹50 lakhs.
Furthermore, this order must not be based on any search/survey or information received pursuant to an agreement referred to in section 90 or 90A of the Act.
To access the e-DRS module, you must first log in to the Income Tax Portal. Then, you can follow the steps below to access the dispute resolution system.
Steps to follow:
I. You can log in to your account using PAN/TAN as your User ID.
II. Now go to Control Panel >> Electronic Files.
III. Go to Income Tax Forms.
IV. You can now click on “File Income Tax Return Forms”.
V. Under the “individuals not dependent on any source of income” tab, go to “dispute resolution committee” in certain cases, i.e. form 34BC.
VI. Complete form number 34BC.
VII. Here you can review the details.
VIII. Lastly, you can e-verify Form 34BC using Aadhaar OTP, EVC or DSC.
What happens after I apply?
The Dispute Resolution Committees may modify the variations in the specified order and grant reduction or exemption from penalty and prosecution in accordance with the provisions of Rule 44DAC of the Income Tax Rules, 1962.
The DRC is mandated to issue its order within six months from the end of the month in which it admits a dispute resolution request.
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