e-Settlement Scheme, 2021

Why in news

• The Central Board of Direct Taxes (CBDT) has rolled out e-Settlement Scheme for settlement of tax disputes involving small tax payers to be processed entirely electronically. 

About the scheme:

• Under the e-Settlement Scheme, 2021 that is effective from 3^rd November 6, 2021, an ‘interim board’ will decide on applications for settlement.
• The interim board is tasked with handling pleas that are transferred from the Settlement Commission.
• While announcing a new Dispute Resolution Committee in union budget for FY22, the government said taxpayers having taxable income up to Rs.5 million and disputed income up to Rs.1 million could seek settlement under this Committee and any pending cases before the Settlement Commission would be handled by the Interim Board. 
• The e-Settlement scheme says that all communication between the Interim Board and tax payers will be exclusively in electronic mode.
• The scheme is in line with the government’s vision to digitize the overall income tax litigation process in order to bring more transparency and credibility.

PRACTICE QUESTION

‘e-Settlement Scheme, 2021’, recently seen in news, is associated with

(a) Telecom spectrum auction

(b) Direct taxation

(c) Corporate bond market

(d) Foreign direct investment

Answer