How to use new electronic system to resolve Income Tax disputes

The Central Board of Direct Taxes (CBDT) has launched the e-Dispute Resolution Scheme (e-DRS) for taxpayers to resolve matters related to Income Tax assessments. The scheme was notified in 2022 and will minimise litigation and provide a more efficient resolution mechanism.

Key features of the e-DRS

The e-DRS system enables taxpayers to electronically submit applications for dispute resolution to the Dispute Resolution Committees (DRCs) in 18 jurisdictions across India.

These DRCs will assist taxpayers in resolving disputes related to 'specified orders, providing an alternative to prolonged legal proceedings. (Orders by whom?)

Eligibility criteria:

Applicable to orders where the aggregate sum of variations does not exceed Rs 10 lakh.

The returned income for the relevant assessment year should not exceed Rs 50 lakh.

Orders based on search/surveys or information received under international agreements are excluded.

Application process:

Taxpayers can file applications electronically through Form No. 34BC on the Income Tax department's e-filing portal.

The application deadline is within one month from the receipt of the specified order.

Pending appeals: For appeals already filed and pending before the Commissioner of Income-tax (Appeals), applications can be submitted until September 30, 2024.

Time-bound resolution: DRCs are mandated to pass orders within six months from the end of the month in which the application is admitted.

Implementation timeline

- For specified orders passed on or before August 31, 2024, where the appeal filing deadline hasn't lapsed, applications can be submitted until September 30, 2024.

- The e-DRS application process is now live on the Income Tax Department's portal.

Accessing the e-DRS module

To access the e-DRS module:

Log in to the Income Tax portal at https://eportal.incometax.gov.in using your PAN or TAN as the user ID.

Navigate through the following path:

- Dashboard -> e-File -> Income Tax Forms -> File Income Tax Forms.

Select the option for 'Dispute Resolution Committee in Certain Cases (Form 34BC).'

Fill out Form No. 34BC, ensuring all details are accurate.

Review your details and proceed to e-verify the form using one of the following methods:

- Aadhar OTP

- EVC (Electronic Verification Code)

- DSC (Digital Signature Certificate).