What Is the Full Form of DRP in Income Tax?
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The DRP Full Form In Income Tax is Dispute Resolution Panel. Established by the Central Board of Direct Taxes (CBDT) in India under Section 144C of the Income Tax Act, 1961, the DRP is designed to address disputes between taxpayers and the income tax department. This panel is composed of three commissioners who review complaints related to the initial tax assessment notices issued by tax officers. The primary role of the DRP is to resolve conflicts that arise, especially those involving complex transfer pricing and significant international or domestic transactions that might affect the tax liabilities of taxpayers.
Formation and Functioning:
The DRP’s core function is to impartially review issues that taxpayers raise against preliminary orders from tax officers. Taxpayers seeking assistance from the DRP are typically those dealing with adjustments in transfer pricing and international transactions. Taxpayers have 30 days from the day after receiving the initial assessment notice to present their objections to the DRP. The panel will then review the submitted matters and evidence, providing directions to the tax officer to finalize the tax assessment in accordance with DRP’s guidance within the specified period.
What Needs to Be Submitted?
To seek a resolution, taxpayers must submit a detailed objection, including the reasons for their disagreement, relevant facts presented to the tax officer, any modifications made by the officer, legal arguments, and pertinent court decisions. Providing comprehensive and clear information allows the DRP to understand the case thoroughly and make well-informed decisions.
In conclusion, understanding the DRP full form in income tax—Dispute Resolution Panel—helps taxpayers navigate the complexities of tax disputes effectively. By engaging with the DRP, taxpayers can seek a fair review of their cases and resolve issues related to tax assessments more efficiently.
The DRP Full Form In Income Tax is Dispute Resolution Panel. Established by the Central Board of Direct Taxes (CBDT) in India under Section 144C of the Income Tax Act, 1961, the DRP is designed to address disputes between taxpayers and the income tax department. This panel is composed of three commissioners who review complaints…