About e-Dispute Resolution Scheme (e-DRS): UPSC Current Affairs

E-DISPUTE RESOLUTION SCHEME 2022 (E-DRS)

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Context:

The e-Dispute Settlement Scheme (e-DRS) 2022 was launched to streamline tax dispute resolution.

About e-DRS

The Central Board of Direct Taxes (CBDT) established the e-Dispute Resolution Scheme (e-DRS), under Section 245MA of the Income-tax Act of 1961, to reduce litigation and support eligible taxpayers.
The e-DRS allows eligible taxpayers to online file dispute resolution applications with their regional DRC, hence streamlining the process and providing relief.

Key Features of e-DRS

Taxpayers can resolve disputes through an online portal, which improves accessibility, reduces paperwork, and speeds up response times.
Dispute Resolution Committees (DRCs) have been established in all 18 regions under the Principal Chief Commissioner of Income Tax. These committees review and settle disputes according to the scheme.
The DRC must issue an order within six months of the application's acceptance date. This brief timeline is intended to speed up the resolution process.

Significance of e-DRS

It provides a faster digital resolution process to reduce the burden on courts and the expenses associated with tax disputes.
The structured time frame ensures that conflicts are handled more swiftly than traditional litigation.
Online portal increases transparency and allows taxpayers to track the status of their applications.
Registering complaints electronically simplifies the process for taxpayers, making it more accessible and less complicated.

About Central Board of Direct Taxes (CBDT)

●It is a statutory body established under the Central Board of Revenue Act 1963.

●It comes under the jurisdiction of the Department of Revenue in the Ministry of Finance.

●It regulates and creates policies related to direct taxes, ensuring efficient tax administration and compliance.

●It monitors the operations of the Income Tax Department, ensuring that taxes are collected efficiently and in compliance with the law.

●The CBDT is headed by a chairman and consists of six members.

●All CBDT members are ex-officio Special Secretaries to the Government of India who are selected from the Indian Revenue Service (IRS).

Source:

PIB

Income Tax India

Wikipedia

PRACTICE QUESTION

Q. Consider the following statements about the Central Board of Direct Taxes (CBDT):

1. The Central Board of Revenue was split in 1964 into the Central Board of Direct Taxes and the Central Board of Excise and Customs.

2. The CBDT Chairperson is placed equivalent to officers of the rank of Deputy Comptroller and Auditor General in the Order of Precedence.

Which of the above statements is/are correct?

A) 1 only

B) 2 only

C) Both 1 and 2

D) None

Answer: C

Explanation:

Statement 1 is correct: The Central Board of Revenue (CBR) was created under the Central Board of Revenue Act 1924, it was in charge of managing both direct and indirect taxes in India. The CBR was divided into two separate boards in 1964 to streamline taxation.

●The Central Board of Direct Taxes (CBDT) was established to administer direct taxes, while the Central Board of Excise and Customs (now known as the Central Board of Indirect Taxes and Customs) was formed to handle indirect taxes.

Statement 2 is correct: The Order of Precedence is a hierarchical list of dignitaries and officials, indicating their status and importance. The CBDT Chairperson has the same rank as top officials as the Deputy Comptroller and Auditor General.