Income Tax News: LEI No. necessary to credit income tax refunds up to Rs. 50 crore: Recently, the Income Tax Department mandated that non-individual organisations obtain a Legal Entity Identifier (LEI) No. in order to be eligible for refunds of up to Rs. 50 crore. A 20-character alpha-numeric identifier known as the LEI is used to uniquely identify parties to financial transactions all across the world. It is distributed via approved Local Operating Units (LOUs) and is necessary for significant NEFT and RTGS payment system transactions.
Exemption for Governmental Bodies
Governmental bodies are not required to comply, but the corporations and endeavours they are associated with must. Transactions involving specific customers are exempt from the LEI requirement.
There are also guidelines for recording LEI data for various entity types, capturing counterparty LEI data, and populating LEI in NEFT and RTGS transactions. These specifications are relevant to specific channels used to connect to RTGS and to operational transactions conducted by financial institutions.
Using LEI to Simplify Refund Processing
- The purpose of implementing LEI is to simplify and accelerate the refund processing process for qualified organisations.
- Organisations that fit this description are urged to submit their LEI information as soon as possible via the official website.
Instructions for the Submission Process
- The process for submitting LEI details is simple and has been detailed by the Income Tax Department.
- Participants can go to the Login area, then to the Dashboard, Services tab, and finally choose LEI to provide the necessary data.
Deadline and Penalties
- It is recommended that entities fulfil the deadline for submitting LEI details in order to prevent any delays in the processing of refunds.
- Penalties or delays in the return disbursement process could arise from noncompliance with the LEI requirement.
LEI Requirement for Refunds Above Rs. 50 Crore
According to a recent update from the Income Tax Department, a Legal Entity Identifier (LEI) No. is needed for the crediting of refunds above Rs. 50 crore in the case of non-individuals as per the RBI Notification. Please enter your LEI data in Login->Dashboard->Services->LEI for hassle-free refund processing.
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