In a recent update, the Income Tax Department has introduced a new prerequisite for non-individual entities receiving refunds exceeding Rs. 50 crore. As per the RBI notification, effective refund processing now necessitates the inclusion of a Legal Entity Identifier (LEI) number. Entities are strongly encouraged to promptly submit their LEI information through the designated portal to ensure a seamless transaction.
In alignment with the RBI Notification, the Income Tax Department has mandated the utilization of the Legal Entity Identifier (LEI) specifically for non-individual entities, applicable only in instances where refund credits exceed Rs. 50 crore.
The incorporation of LEI aims to streamline and expedite the refund processing procedure for eligible firms. Entities falling within this category are advised to swiftly provide their LEI information using the officially approved online platform.
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The Department has provided a straightforward procedure for submitting LEI information. Entities can access the Login section, proceed to the Dashboard, navigate to the Services tab, and then select LEI to provide the required details.
Adhering to the new LEI requirement is crucial for non-individual organizations seeking income tax refunds exceeding Rs. 50 crore. This adjustment aims to enhance transparency, accuracy, and efficiency in the refund disbursement process.
Entities are strongly urged to adhere to the deadline for submitting LEI details to prevent any delays in the refund processing. Non-compliance with the LEI requirement may lead to penalties or interruptions in the refund disbursement process.
The Income Tax Department reiterates its dedication to facilitating a seamless and user-friendly refund process for all participating companies. The integration of LEI is a key component of ongoing efforts to modernize and enhance the efficiency of tax operations.
The IT Department’s mandated adoption of the Legal Entity Identifier (LEI) for non-individual organizations eligible for refunds exceeding Rs. 50 crore underscores its commitment to establishing a more streamlined and effective tax administration system. Entities are strongly urged to promptly adhere to the new criteria to ensure a smooth experience in the processing of refunds.
