Relief to taxpayers: How to access CBDT’s new e-dispute resolution system— a step-by-step guide

To provide relief to some taxpayers and reduce litigation, the Central Board of Direct Taxes (CBDT) has notified the e-dispute resolution scheme, 2022, wherein a taxpayer can seek resolution in cases where the department has passed an order asking for additional tax liability of an amount lower than ₹10 lakh.

Under this provision, taxpayers can, subject to fulfilling certain criteria, file an application electronically for dispute resolution 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 constituted in all 18 jurisdictional Pr CCIT regions across the country. The income tax portal provides a list of such DRCs along with their email IDs.

When can taxpayers opt for dispute resolution?

As per e-DRS, a taxpayer can opt for the e-Dispute Resolution System against the ‘specified order’ which includes an order in which the aggregate sum of variations proposed or made is lower than ₹10 lakh and returned income for the relevant assessment year does not exceed ₹50 lakh.

Additionally, this order should not be based on any search/survey or information received under an agreement referred to under section 90 or 90A of the Act.

To access the e-DRS module, you need to first log in to the income tax portal. Then you can take the following steps to access the dispute resolution system.

Steps to follow:

I. You can log in to your account using PAN/TAN as the user ID.

II. Now you go to Dashboard >> e-files.

III. Go to Income tax forms.

IV. Now you can click ‘File income tax forms.’

V. Under the tab, ‘persons not dependent on any source of income’, go to ‘dispute resolution committee’ in certain cases i.e., form 34BC.

VI. Fill the form number 34BC.

VII. Here you can review the details.

VIII. Finally, you can e-verify the form number 34BC using Aadhaar OTP, EVC or DSC.

What happens after the application is filed?

Dispute resolution committees may modify the variations in the specified order and grant reduction or waiver of penalty and prosecution in accordance with the provision of rule 44DAC of the Income-tax Rules, 1962.

The DRC is mandated to pass its order within six months from the end of the month in which it admits an application for dispute resolution.