Income tax compliance norms are constantly evolving with time
Income tax compliance norms are constantly evolving with time
The Central Board of Direct Taxes has recently notified the e-Dispute Resolution Scheme, 2022 to settle tax disputes.
All India Tax Payers Association (AITPA) President Abhishek Murali decodes everything you need to know about this scheme.
Why the need for a new tax dispute resolution scheme?
Income tax compliance norms are constantly evolving with the passage of time. The past eight years have seen a significant introduction of technology to help compile information and initiate action against defaulting taxpayers. When an income tax notice was issued or an order was passed, the assessee had no option but to file an income tax appeal and fight the case, however large or small the amount may be. The central government has now come up with a tax payer friendly online dispute resolution committee.
Which category of taxpayers are eligible for the scheme?
All assessees are eligible for Dispute Resolution Committee, subject to the following conditions. * Returned income is up to ₹ 50 lakhs and tax disputes do not exceed ₹ 10 lakhs. *Tax on refunded income has been paid in full. * No prosecution proceedings have already been initiated. * No search/raids have been initiated for that respective assessment year. * No survey has been initiated for the relevant assessment year.
Who are the members of Dispute Resolution Committee?
The committee will consist of three members, including two retired officers of the Indian Revenue Service who have held the post of Commissioner of Income Tax or higher for five years. It also includes a serving officer not below the rank of Principal Commissioner of Income Tax and the term of the members is three years.
What are the benefits of the Dispute Resolution Committee mechanism?
Some of the benefits include complete exemption of penalties, immunity from prosecution proceedings, transparency in proceedings and taxpayers can settle cases and avoid repeated litigation. Further, unlike the previous Settlement Commission, the benefit is available to the assessee every year, which was limited to once in a lifetime.
How to apply in Dispute Resolution Committee?
After payment of ₹1,000 fee, a Form 34BC has to be filed with details of facts and grounds to avail the benefit of Dispute Resolution Committee. Full exemption and exemption will be provided to the taxpayer after the scheduled hearing.