Context:
The Central Board of Direct Taxes (CBDT) has introduced the Dispute Resolution Scheme (e-DRS), 2022, as a streamlined and efficient platform for taxpayers to resolve their income tax disputes.
Relevance:
GS III: Indian Economy
Dispute Resolution Scheme
- Objective: To reduce litigation and offer a quicker, more cost-effective way for taxpayers to resolve disputes.
- Method: Disputes are resolved electronically through Dispute Resolution Committees (DRCs).
Eligibility Criteria
- Taxpayers: Must meet specific conditions outlined in section 245MA.
- Financial Limits: Disputes involving amounts not exceeding Rs. 10 lakh and where the taxpayer’s income for the relevant year does not exceed Rs. 50 lakh.
- Scope of Disputes: Does not cover disputes involving information from searches or international agreements.
Dispute Resolution Committees (DRCs)
- Location: Established in all 18 regions across India.
- Powers: Can modify orders, reduce penalties, or waive prosecution.
- Decision Timeframe: Required to make decisions within six months of receiving the application.
-Source: The Hindu
