LEI registration made compulsory for Income Tax Refunds over Rs. 50 Crores
The Income Tax Department recently made an announcement by displaying on its website a message stating that “According to the RBI Notification, in the case of non-individuals, a Legal Entity Identifier (LEI) No. is required for credit of refunds of Rs. 50 Crores and above. For hassle-free refund processing, please submit LEI details on the Income Tax portal in Login->Dashboard->Services->LEI.”
Thus, this is a new requirement made by the Income Tax Department for non-individual entities where the tax refunds are of an amount exceeding Rs. 50 Crores. According to the RBI notification, a Legal Entity Identifier (LEI) No. is mandatory for efficient refund processing. Entities therefore are urged to submit their LEI details through the designated portal for a seamless experience.
Requirement of LEI in high value refunds:
- The said rule is applicable on non-individual assesses like company, LLP, partnership firms etc.
- The said rule does not apply to individual assesses
- The requirement of submitting LEI is applicable only in case of high value refunds i.e. refunds of an amount above Rs. 50 Crores.
Process of submitting LEI for high value refunds
- The Income Tax Department has outlined a hassle-free submission process for LEI details on its portal.
- Entities need to login and then proceed to dashboard, access “Services” tab and then select LEI for submitting the required information.
Benefits of LEI in case of high value refunds
- The introduction of LEI is aimed at streamlining and expediting the refund processing procedure for eligible entities.
- The use of LEI for high value refunds is expected to enhance transparency, accuracy and efficiency in the refund disbursement process.
- The use of LEI by the Income Tax Department is a part of ongoing efforts to modernize and enhance the efficiency of tax-related procedures.
Conclusion:
The introduction of Legal Entity Identifier (LEI) for non-individual entities is a major move of the Income Tax Department towards more streamlined and efficient tax administration system. Entities who are covered by the said announcement should comply with LEI requirements so that they could get their income tax refunds in a prompt and hassle-free manner.
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