Income Tax Dept Implements e-Dispute Resolution to Aid Taxpayers

The income tax department has rolled out dispute resolution committees (DRCs) across all 18 principal commissionerates as part of the e-Dispute Resolution Scheme, 2022. This aims to reduce litigation and provide relief to taxpayers meeting specific criteria by allowing them to file applications electronically for dispute resolution.

The Income Tax Department announced the establishment of dispute resolution committees (DRCs) across 18 principal commissionerates under the electronic dispute resolution scheme. This move, facilitated by the Central Board of Direct Taxes (CBDT), aims to lower litigation and provide relief to eligible taxpayers.

Under the e-Dispute Resolution Scheme, 2022, taxpayers who meet the conditions outlined in section 245MA of the Act can electronically file applications to the designated DRC in their jurisdiction.

Taxpayers can opt for e-dispute resolution against orders with proposed variations not exceeding Rs 10 lakh and a returned income not surpassing Rs 50 lakh, provided such orders are not based on searches, surveys, or international agreements. The DRC must issue its decision within six months of accepting an application.

(With inputs from agencies.)