Indore (Madhya Pradesh): Sanjeev Kumar, Joint Commissioner Income Tax Department, has stated that the main objective of Income Tax Department is not to get tax collection through Tax Deduction at Source (TDS), but to get information about important financial transactions of the taxpayer in real time. This helps a lot in tax administration. He said that even today in small cities, due to ignorance or negligence, people are not following the TDS provisions.
Thus they are facing penalty and in many cases, strict action like prosecution. He advised tax payers that before doing any financial transaction, they should consult their CA or tax adviser. So that they do not have to face any problem later. Joint Commissioner Kumar was addressing a seminar organised jointly by Tax Practitioners Association and Indore CA branch at TPA Hall here on the new Dispute Resolution Scheme (eDRS) and provisions of TDS to reduce Income Tax Disputes.
Another speaker of the seminar was senior CA Rajesh Mehta. Mehta said that the Income Tax Department has started an online dispute resolution scheme for resolution of small appeals pending before the Commissioner (Appeals). In the eDRS, taxpayers whose income is not more than Rs 50 lakh and there is any dispute of expenditure or income up to Rs 10 lakh, then the scheme is applicable for them for resolution of that dispute. The last date for filing application for old pending cases is September 30. Under the scheme, disputed income or invalid expenditure should not exceed Rs 10 lakh.
For this, after submitting form No 34BC online, the taxpayer will have to email the said application to his Regional Dispute Resolution Committee. For Madhya Pradesh and Chhattisgarh, form 34BC, tax assessment order, etc. documents will have to be emailed to bhopal.dispute.rc1@incometax.gov.in Within 6 months of receiving the application from the taxpayer, the Dispute Resolution Committee will pass an order to accept, partially accept or reject the application.
In case of rejection, the taxpayer can again apply his case to the Commissioner of Appeal. Cases of disputes related to income tax search or survey will not be included in this scheme. After applying, the taxpayer can avail video conferencing facility to present his side before the committee. CA Mehta mentioned that another scheme ‘Vivaad se Vishwas Yojana 2024’ is also announced by the Income Tax Department for resolution of various income tax appeals that are pending at Commissioner of Appeal, Income Tax Appellate Tribunal, High Courts or Supreme Court. Taxpayers who are not eligible to apply to Dispute Resolution Committee, whose disputed cases are of over Rs 10 lakh can resolve the dispute by paying tax of their disputed appeals by December 31 under Vivaad se Vishwas Yojana.
