National rules have been strictly applied to all the remittances of a foreign nature which is done to a Non-Resident. There are certain slabs and amounts on which there is taxation. The person making a remittance has to deposit a Form 15CA online. In the case of Form 15CB, a certificate is required from a chartered accountant.
The meaning of Form 15CB is here to determine the tax deduction as per the income tax rules and also avoid the double tax provision. TDS is again charged in the case when the remittance is taxable. The information provided in Form 15CB mainly includes the details of the remittee, details of the remitter, nature of remittance like royalty, salary, commission as per the agreement between both sides, Tax Residency Certificate and Bank details of the remitter from the remitter in case DTAA (Double Taxation Avoidance Agreement) is applicable.
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What is Form 15CA?
Form 15CA is a Declaration of Remitter and is considered as a tool for collecting information in lieu of payments that are chargeable for tax in the hands of recipient non-resident of India. This is the starting of an effective Information Processing System which may be utilized by the Income-tax Department to freely track foreign remittances and their source to determine tax liability.
Financial Institutions are now more vigilant in seeking such Forms before remittance is effected since now as per revised Rule 37BB a duty is implied on them to furnish Form 15CA received from remitters to an income-tax authority for the uses of any proceedings under the Income-tax Act.
How Form 15CA is Important?
Yes, the form is required to be filled for any non-resident but for certain conditions if prevail. Those conditions can be easily understood by the following sentence:- “(To be filled up if the remittance is chargeable to tax and does not exceed fifty thousand rupees and the aggregate of such remittances made during the financial year does not exceed two lakh fifty thousand rupees)”
Therefore it appears clear that Form 15CA is not required to be filled if the remittance/ payment to a non-resident is not chargeable to tax.
Easy Submission Process of New 15CA & 15CB Forms
Income-tax Department has come up with a fully new re-engineered Form 15CA and Form 15CB consent process based on Multiple feedbacks provided by diverse corporates and experts across India. This alteration will clarify the preparation, assignment, submission, and verification process and indulge in the complete filing cycle of the Form.
The Primary key Transformation of Forms 15CA and 15CB
- Taxpayers are not needed as of now to assign the same CA for several 15 CA /CB submissions annually. Appointment of CA for Form 15CB is a single-time activity for a certain Financial year.
- Once a particular Assignment is accomplished in the year, a CA can begin Form 15CB for a certain Remittee & Remitter without the need for the taxpayer to fill Part – C of Form 15CA and assign it to the CA throughout the year. The prior practice of various acceptance/rejections for each from is dragged to simplify the process.
- Now, CA can access Form 15CB from the file Income Tax Forms functionality for filing alternately of Worklist for your action.
- Offline / Bulk Mode of the consent method has been allowed since 4th Oct. The taxpayer can initiate XML files using the Java-based offline Services that are open on the portal in the ‘Download’ section under the ‘Income -tax Forms’ page and upload the similar in the portal for further filings. The new online procedure will follow soon the portal.
What are the Contents of Form 15CA?
Form 15CA is segregated into sections based on different situations. The remitter needs to go through the form and fill in proper details in the relevant section:
Parts of Form 15CA
- Part A – Section A of Form 15CA is filled in by the remitter when the payment or the total sum of the payment extended by the remitter to the NRI recipient during a particular Financial Year is Rs. 5 Lakhs or less.
- Part B – Section B of Form 15CA is in the role when such payments are more than Rs. 5 Lakhs. Information is entered by the filer in Section B after acquiring a certificate from the Assessing Officer (valid under Section 197) or the order from the Assessing Officer (valid under sub-section (2) or sub-section (3) of Section 195).
- Part C – If such payments made during a particular FY exceed Rs. 5 Lakhs, the related information has to be entered in Section C of Form 15CA after acquiring the Tax Determination Certificate or Form 15CB from authorized CA (valid under sub-section (2) of section 288).
- Part D – Payments made by the remitter during a particular FY which is not referred to in sub-section 37BB or in other words is not taxable under law, the information related to such payments is to be entered in Section D of Form 15CA.
Note: Form 15CB is required to be filled only when the remittance exceeds Rs 5 Lakh in the said fiscal under the Income Tax Act 1961.
Guidelines of How to File Form 15CA?
Form 15CA is available online on the government’s official income tax e-filing portal. The form is electronically submitted to concerned authorities. Here is the step-wise guidance to file Form 15CA:
- Step 1 Visit the official E-filing portal at https://incometaxindiaefiling.gov.in/ and log in by using the valid credentials.
- Step 2– Select ” E-file” from the menu placed at the top of the page and then click on Income Tax Forms.
- Step 3– The PAN details of the taxpayer are pre-filled. Choose “Form 15CA” from the drop-down list named “Form Name”.
- Step 4– Select your required section from “Select the relevant part from the down “
- Step 5– Fill the selected part of Form 15CA and click on the “submit” button.
- Step 6– Fill in the details in the verification portion of the respective part of Form 15CA.
Please Note– Form 15CB needs to be uploaded before you fill Part C of Form 15CA as the acknowledgement number of Form 15CB is required while filing the respective part.
Once the form is successfully filled, a notification “successfully submitted” will pop up on the screen along with a confirmation email sent to the registered email account.
What is Form 15CB?
Form 15CB liability can be ascertained and certified by obtaining the Certificate from a Chartered Accountant in Form no. 15CB. This certificate has been prescribed under Section 195(6) of the Income-tax Act and is an alternate channel of obtaining Tax clearance apart from the Certificate from the Assessing Officer.
Filing Form 15CB: Information to be Required From the Client
- A. Details of Remitter
- 1. Remitter’s Name
- 2. Remitter’s Address
- 3. Remitter’s PAN Number
- 4. Principal Place of Business of the Remitter
- 5. E-Mail Address and Phone No. Of Remitter
- 6. Status of the Remitter (Firm/Company/Other)
- B. Details of Remittee
- 1. Name and Status of the Remittee
- 2. Remittee’s Address
- 3. Nationality of the Remittee i.e. Place Where Remittance Is Made
- 4. Business Portfolio of the Remittee
- Principal Place of the Remittance
- C. Details of the Remittance
- 1. Country to Which Remittance Is Made
- 2. Currency in Which Remittance Is Made
- 3. Amount of Remittance in Indian Currency
- 4. Proposed Date of Remittance
- 5. Nature of Remittance as Per Agreement (Invoice Copy to Be Asked From Client)
- D Bank Details of the Remitter
- 1. Name of Bank of the Remitter
- 2. Name of Branch of the Bank
- 3. BSR Code of the Bank
- E. Others
- 1. Father’s Name of the Signing Person
- 2. Designation Of The Signing Person
Highlighting Impacts of New Rule on 15CA & 15CB
Note: Applicable since 1st October 2013
- A. Form 15CB is not required where Part A of Form 15CA is to be filled in, i.e. in case of small payments.
- B. 33 types of payments for which no information is required to be furnished at all along with the form.
- C. In the case of other payments, it appears that either an order or a certificate of the Assessing Officer u/s. 197/195(2)/195(3) must be obtained, or a certificate of the Chartered Accountant should be obtained.
- D. Sub-rule (2) of the revised Rule 37BB mandates that Form 15CA shall be furnished to the authorized dealer prior to remitting the payment.
CA Can Fill in Form 15CB by the Below-Mentioned Procedure
- Visit https://www.incometax.gov.in/iec/foportal and click on the Downloads tab.
- Select the required Forms (Other than ITR) and then convert them either in JSON Utility (whichever is suitable).
- Create the XML file using your chosen utility.
- Login to the account on the e-filing portal and click on the E-file tab. Select Upload Form from the drop-down menu.
- Fill in the PAN/TAN details of the assessee, PAN of C.A., and Select Form Named Filing Type as the original. Press ‘submit
As soon as you press the submit button you will receive a success notification along with an email sent to your registered email ID.
Note: Digital Signature Certificate is the crucial document while filing Form 15CB.
New Submission Guide to Form 15CA and 15CB in PDF
