Tax Dispute Resolution Committees Set Up in India

New Delhi, Aug 30 (PTI) The income tax department on Friday said dispute resolution committees (DRCs) have been set up in all the 18 principal commissionerates under the electronic dispute resolution scheme.

The Central Board of Direct Taxes (CBDT) had notified the e-Dispute Resolution Scheme, 2022 with the aim to reduce litigation and provide relief to eligible taxpayers.

The e-DRS enables the taxpayer, who fulfils certain specified conditions as stipulated in section 245MA of the Act, to file an application electronically for dispute resolution to the DRC designated for the region of Principal Chief Commissioner of Income-tax having jurisdiction over the taxpayer.

"To this end, DRCs have been constituted in all 18 jurisdictional Pr. CCIT regions across the country," the CBDT said in a statement.

A taxpayer can opt for e-Dispute Resolution against the 'specified order', which includes an order in which the aggregate sum of variations proposed or made does not exceed Rs 10 lakh and returned income for the relevant assessment year does not exceed Rs 50 lakh.

Further, such order should not be based on search/surveys or information received under an agreement referred to under section 90 or 90A of the Act.

According to e-DRS, a DRC may make modification to the variations in the specified order and decide to grant reduction/waiver of penalty and prosecution. The DRC is mandated to pass its order within six months from the end of month in which application for dispute resolution is admitted by it.