CBDT rolls out Dispute Resolution Scheme (e-DRS) 2022 to minimise litigation



Quick Summary
The Central Board of Direct Taxes (CBDT) has introduced the e-Dispute Resolution Scheme, 2022 (e-DRS) to reduce tax litigation. This scheme allows eligible taxpayers to apply electronically for dispute resolution through designated Dispute Resolution Committees (DRCs). DRCs have been established in all 18 Principal Chief Commissioner of Income-tax regions across the country.

Dispute Resolution Committees (DRCs) constituted in all 18 jurisdictional Pr. CCIT regions across the country

As per e-DRS, a taxpayer can opt for e-Dispute Resolution against the ‘specified order’ under certain conditions

e-DRS application must be filed within one month from the date of receipt of specified order

If appeal is pending, e-DRS application is to be filed on or before 30.09.2024

CBDT Launches e-DRS Scheme 2022 to Cut Tax Disputes

In pursuance of section 245MA in the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Central Board of Direct Taxes (CBDT) notified the e-Dispute Resolution Scheme, 2022 (e-DRS) with the aim to reduce litigation and provide relief to eligible taxpayers. Section 245MA of the Act also provides for the constitution of Dispute Resolution Committees (DRC).

The e-DRS enables the taxpayer, who fulfils certain specified conditions as stipulated in section 245MA of the Act, to file an application electronically for dispute resolution to the DRC designated for the region of 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 list of such DRCs along with their e-mail addresses is available on:

https://www.incometax.gov.in/iec/foportal/help/all-topics/statutory-forms/file-statutory-form/popular-form/form-34-BC.

As per e-DRS, a taxpayer can opt for e-Dispute Resolution against the ‘specified order’ as defined in clause (b) of the Explanation to section 245MA of the Act, which includes an order in which the aggregate sum of variations proposed or made does not exceed Rs.10 lakh and returned income for the relevant assessment year does not exceed Rs. 50 lakh. Further, such order should not be based on search/surveys or information received under an agreement referred to under section 90 or 90A of the Act.           

According to e-DRS, a DRC may make modification to the variations in the specified order and decide to grant reduction/waiver of penalty and prosecution in accordance with the provision of rule 44DAC of the Income-tax Rules, 1962 (hereinafter referred to as "the Rules"). The DRC is mandated to pass its order within six months from the end of month in which application for dispute resolution is admitted by it.

The application for e-DRS is to be filed in Form No. 34BC referred in rule 44DAB of the Rules, on the e-filing portal of the Income Tax Department, within one month from the date of receipt of specified order. In cases where appeal has already been filed and is pending before the Commissioner of Income-tax (Appeals), the application for e-DRS, is to be filed on or before 30.09.2024. In cases where the specified order has been passed on or before 31.08.2024 and the time for filing appeal against such order before CIT (Appeals) has not lapsed, the application for dispute resolution can be filed on or before 30.09.2024.

 The Tax Payer can access e-DRS module by login on income tax portal https://eportal.incometax.gov.in.   Login to your account using PAN / TAN as user ID ->Go to Dashboard ->e-File ->Income Tax Forms ->File Income Tax Forms -> under tab 'Persons not dependent on any source of Income (Source of Income not relevant)> Dispute Resolution Committee in Certain Cases (Form 34BC) -> Fill Form No. 34BC ->   Review the details -> E-Verify the Form No. 34BC using Aadhar OTP, EVC or DSC.

This is another initiative by the Government towards minimising litigation.

FAQ :

The e-DRS Scheme 2022 has been launched by the CBDT with the aim of minimising tax litigation and providing relief to eligible taxpayers.

Taxpayers can apply electronically for dispute resolution through the e-DRS module on the Income Tax Department's e-filing portal using Form No. 34BC.

A 'specified order' includes cases where the total variations proposed or made do not exceed Rs. 10 lakh and the returned income for the relevant assessment year does not exceed Rs. 50 lakh. The order must not be based on search/surveys or information received under specific international agreements.

Generally, applications must be filed within one month from the date of receipt of the specified order. If an appeal is already pending, the application must be filed on or before 30.09.2024.

Yes, a DRC may modify the variations in the specified order and decide to grant a reduction or waiver of penalty and prosecution, in accordance with the Income-tax Rules.




News posted by

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

Comments :


More »


Popular News





CCI Pro



Company
30 September 2026
Senior Accounts Executive

Codeboard Technology

Chennai

MBA

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details