Income Tax Department Mandates LEI for Non-Individuals with Refunds over Rs 50 Crore

In a recent announcement, the Income Tax Department has introduced a new requirement for non-individual entities regarding the Credit of Refunds exceeding Rs. 50 crore. As per the RBI Notification, a Legal Entity Identifier (LEI) No. is now mandatory for efficient refund processing. Entities are urged to promptly submit their LEI details through the designated portal for a seamless experience.

Mandatory LEI for Non-Individuals

• The Income Tax Department, in accordance with the RBI Notification, has mandated the use of Legal Entity Identifier (LEI) for non-individual entities.
• This requirement specifically applies to cases involving the Credit of Refunds exceeding Rs. 50 crore.

Refund Processing Simplified with LEI

• The introduction of LEI is aimed at streamlining and expediting the refund processing procedure for eligible entities.
• Entities falling under this category are encouraged to promptly provide their LEI details through the designated online platform.

Submission Process Instructions

• The Income Tax Department has outlined a hassle-free submission process for LEI details.
• Entities can navigate to the Login section, proceed to the Dashboard, access the Services tab, and then select LEI for submitting the required information.

Importance of Compliance

• Compliance with the new LEI requirement is crucial for non-individual entities seeking refunds exceeding Rs. 50 crore.
• The move is expected to enhance transparency, accuracy, and efficiency in the refund disbursement process.

Deadline and Penalties

• Entities are advised to adhere to the stipulated deadline for submitting LEI details to avoid potential delays in refund processing.
• Failure to comply with the LEI requirement may result in penalties or disruptions in the refund disbursement process.

Facilitating a Seamless Experience

• The Income Tax Department emphasizes its commitment to providing a seamless and user-friendly experience for entities undergoing the refund process.
• The introduction of LEI is part of ongoing efforts to modernize and enhance the efficiency of tax-related procedures.

Conclusion

As the Income Tax Department implements the mandatory use of Legal Entity Identifier (LEI) for non-individual entities with refunds exceeding Rs. 50 crore, it underscores the commitment to a more streamlined and efficient tax administration system. Entities are urged to comply with the new requirement promptly to ensure a hassle-free refund processing experience.