Dispute Resolution Scheme

Sept. 1, 2024

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.

About Dispute Resolution Scheme:

The scheme aims to reduce litigation and provide a faster and more cost-effective resolution for taxpayers.
This initiative, established under section 245MA of the Income-tax Act, 1961, will allow taxpayers to resolve disputes electronically through Dispute Resolution Committees (DRCs).
Eligibility:
- Taxpayers who meet certain conditions specified in section 245MA can apply for dispute resolution.
- This includes cases where the disputed amount does not exceed 10 lakh and the taxpayer's income for the relevant year is below Rs. 50 lakh.
- The dispute must not involve information from searches or international agreements.
The DRC, established in all 18 regions across the country, can modify orders, reduce penalties, or waive prosecution. They are required to decide within six months of receiving the application.