Income Tax News: On August 30, the Central Board of Direct Taxes (CBDT) launched the e-Dispute Resolution Scheme, aimed at expediting the resolution of tax disputes. This initiative, initially notified in 2022, now includes an electronic filing process through Form 34BC on the Income Tax e-filing portal.
CBDT Launches e-Dispute Resolution Scheme for Swift Tax Dispute Settlement
The scheme is available to taxpayers with an annual income up to Rs 50 lakh and disputes involving amounts less than Rs 10 lakh. This includes salaried individuals who meet the criteria and have issues such as disallowances in HRA claims or section 80C claims. Mayank Mohanka, founder of TaxAaram.com, highlighted that eligible taxpayers can use this scheme to settle disputes and avoid penalties under section 270A for under-reporting or mis-reporting of income.
Taxpayers currently detained under the Conservation of Foreign Exchange
However, there are specific restrictions. Taxpayers currently detained under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974, or convicted under certain other acts like the Unlawful Activities (Prevention) Act, 1967, are ineligible unless such orders have been overturned by the court.
Under the scheme, taxpayers must pay the principal tax and interest but may benefit from reduced or waived penalties as decided by the Dispute Resolution Committee. Unlike the ‘Vivaad se Vishwas’ scheme, there is no deadline for filing under the e-Dispute Resolution Scheme, and while penalties can be adjusted, interest demands remain non-negotiable.
To file an application, taxpayers should access the e-DRC module on the Income Tax Department’s portal. After logging in, they can select ‘e-file’ on the dashboard, navigate to ‘Income Tax Forms,’ and then choose ‘File Income Tax Forms’ to proceed with their application.
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