CBDT notifies e-settlement scheme for taxpayers

The Central Board of Direct Taxes (CBDT) has notified an e-settlement scheme to settle pending income-tax settlement applications transferred to a settlement commission.

The scheme will be applicable to "pending applications in respect of which the applicant has not exercised the option under sub-section (1) of Section 245M of the Act and which has been allotted or transferred by Central Board of Direct Taxes to an interim board", CBDT said.

The proceedings before the interim board shall not be open to the public. No person other than the applicant, their employee, and concerned officers of the interim board or the income-tax authority or the authorised representatives, without the permission of the interim board, can attend the proceedings even on videoconferencing or video telephony.


CBDT shall establish suitable facilities for videoconferencing including telecommunication application software that supports video telephony at such locations as may be necessary, it said in the notification.

The board had in September allowed eligible taxpayers to file their income-tax settlement claims before the Interim Board for Settlement on certain conditions.

The relief was given to taxpayers who were eligible to file application as on January 31, 2021, but could not file the same due to cessation of Income Tax Settlement Commission as per the Finance Act 2021, and were hence permitted to submit the applications by September 30, 2021 before the interim board.

CBDT had said an assessee should have been eligible to file application for settlement on January 31, 2021 for the assessment years for which the application is sought to be filed and all relevant assessment proceedings of the assessee remain pending as on the date of filing the application for settlement.

The board said such applications, if found valid, will be deemed as "pending applications" and will not be allowed to be withdrawn.