Some aspects related to forms 15cb & 15ca

1. What is the need of Form 15CB & 15CA?

♦ Person making the remittances to Non-Resident require submitting of Form 15CB & 15CA.

♦ Government has made these provisions to ensure the collection of tax from Non Resident at an earlier stage (when remittance is to be made) since collection may not be possible at later stage.

♦ As per section 195 of Income Tax Act, 1961, every person liable to make payment to non-residents shall deduct TDS from such payments made at the rates in force. The RBI also mandates that except in cases of certain personal remittances which have been specifically exempted, no remittances shall be made to Non-Resident without furnishing an undertaking in Form 15CA accompanied by Certificate from Chartered Accountant in Form 15CB.

2. What is Form 15CA?

  • Form 15CA is an undertaking filed electronically by person making remittances to non-resident containing the details of remittances, remittee and remitter.
  • This is considered as a tool of Income Tax Department to freely track the foreign remittances and their sources. Financial Institutions require such forms before effecting remittances as per revised rule 37BB.

3. What are the details and parts of Form 15CA?

  • Form 15CA comprises details such as Name of Remitter, Name of Beneficiary, Nature of Remittance etc. and contains four parts as following:-

> Part A- This part is filled by the remitter when the payment or total sum of the payment extended by the remitter to non-resident during financial year is Rs 5 lakhs or less.

> Part B- This part is filled by the remitter when the payments are more than Rs.5 Lakhs. Information is entered by the remitter in Part B after acquiring Certificate from Assessing officer(sec 197) or the order from Assessing Officer( sub sec (2) or (3) of section 195).

> Part C- If such payments are exceeded Rs.5 Lakhs during the particular financial year. Information is to be filled after acquiring Tax determination Certificate or Form 15CB from authorized CA (sub-section 2 of section 288).

> Part D- Payments made by the remitter not taxable under law, the information related to such payments is to be entered in Part D.

4. How to file Form 15CA?

Form 15CA is electronically filed on the income tax portal, there are following steps such as:-

a)  Step 1:- login at e-filling portal at https://Incometaxindiaefilling.gov.in/.

b)Step 2:- Select the e-file from the menu and click Income Tax Forms and choose Form 15CA from the list.

c)  Step 3:- Select the relevant part applicable from the Form 15CA and filled the information and then click Submit button. Once the Form is successfully submitted confirmation mail sent to the registered email.

5.  What is Form 15CB?

  • Form 15CB is Certificate from Chartered Accountant, kind of certification regarding the tax amount or rates with reference to Income Tax Act, 1961, or Double Taxation Avoidance Agreement (DTAA).
  • In this Certificate, Chartered Accountant certify the nature of payment made to non-resident, rate of TDS as per section 195 of Income Tax Act,1961, and also whether DTAA is applicable or not.

6. How to file Form 15CB?

  • Visit at Income tax portal https://incometaxefilling.gov.in/ and click on the “Download tab’’.
  • Select the forms ‘’Other than ITR forms’’ then convert them into java or excel utility.
  • Create XML file from chosen utility.
  • Login to the e-filling portal and click on the e-file tab and select ‘’Upload Form’’ from the menu.
  • Fill the required details and select Form name as 15CB and submit.

Digital Certificates are crucial document for filling both forms( Form 15CB & 15CA)

Disclaimer: The contents of this article are for information purposes only and does not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

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