Dispute Resolution Scheme: Key Features of Newly Launch E-DRS Scheme

The Central Board of Direct Taxes (CBDT) has launched a new e-DRS (Electronic Dispute Resolution Scheme) to streamline the resolution of income tax disputes. This effort aims to eliminate litigation while also providing a faster, more efficient, and cost-effective solution for taxpayers.

Key Features of e-DRS Scheme

Online Platform: The scheme runs fully online, making it easy for taxpayers to access and participate in the dispute settlement process.

Eligibility Criteria: Taxpayers with disputes under a specific amount and income level are eligible to participate in the e-DRS scheme.

Dispute Resolution Committees: The scheme involves DRCs, which are established to resolve tax disputes. These committees are comprised of competent tax professionals.

Procedure Simplified: The scheme employs a simplified method, which reduces the time and effort required to resolve disagreements.

Reduced Litigation: The e-DRS scheme can help minimize the judiciary’s workload by offering an efficient alternative to traditional litigation.

E-DRS Scheme’s Benefits

Give Faster Resolution: The Scheme of e-DRS can drastically shorten the time it takes to resolve tax disputes.

Reduced Stress of Taxpayers: The expedited approach helps alleviate the stress and worry associated with tax disputes.

Cost-Effective: Taxpayers may find it less expensive than traditional lawsuits.

Improve Taxpayer Experience: The scheme can improve the overall taxpayer experience by implementing a more efficient and equitable dispute resolution process.

How to Apply for this Scheme?

• Visit the Income Tax portal.
• Login to the portal and use PAN/TAN details for login.
• Navigate to Dashboard → e-File → Income Tax Forms → File Income Tax Forms.
• Select the ‘Dispute Resolution Committee in Certain Cases (Form 34BC)’ option.
• Fill and Complete Form No. 34BC and lastly review it.
• E-verify the form with Aadhar OTP, EVC, or DSC.

In summary, the e-DRS scheme is a welcome development that can help taxpayers deal with tax disputes.