For all the foreign remittances made by a resident individual of India, tax deduction is mandatory. Many people who make transactions with non-resident individuals outside India are not aware of tax implications of such transactions.
Points covered in this article are
What is Form 15CA and 15CB?
Exceptions for filing 15CA and 15CB
Registration process for Form 15CA
E-filing process of Form 15CA
Registration process for Form 15CB
E-filing process for Form 15CB
Details to be filled in form 15CB
1. What is Form 15CA and 15CB?
Whenever a resident individual makes remittance to non-resident individual, an undertaking is to be submitted in Form 15CA along with Chartered Accountant certification in Form 15CB
● 15CA: A person making the remittance to a Non Resident or a Foreign Company has to submit the form 15CA. This form is submitted online. In certain cases, a Certificate from Chartered Accountant in form 15CB is to be submitted after uploading the form 15CA online
● 15CB: In form 15CB is a certification given by a Chartered Accountant stating details of the payment, TDS rate and TDS deduction as per Section 195 of the Income Tax Act,1961.
2. Exceptions for filing Form 15CA and 15CB
● Form 15CA and Form 15CB will be NOT be required to be furnished by an individual for remittance, which does not require RBI approval
● Income Tax Act, 1961 specifies a list of payments of particular nature mentioned in Rule 37BB, which do not require submission of Forms 15CA and 15CB, has been expanded from 28 to 33
● Form No. 15CB shall only be filed if the transaction is taxable and if the payment exceeds Rs. 5 lakhs.
3. Registration process for 15CA
To file Form 15CA, the remitter needs to have PAN/TAN registration. Registration has to done in e-filing website https://incometaxindiaefiling.gov.in by selecting the user type and entering PAN/TAN details
4. Filing process
Login to e-Filing, fill and Submit Online Form (Other than ITR)
Select Form 15CA in the next step
Generate signature for the zip file using DSC Management Utility and upload the generated signature file
Next by submitting a pop-up appears. Relavent option is to be chosen
5. Options in Form 15CA(Parts) are
Part A - This part is to be opted when aggregate of such remittances, as the case may be, does not exceed five lakh rupees during the financial year
Part B- This is to be chosen when aggregate of such remittances, as the case may be, does not exceed five lakh rupees during the financial year and an order certificate u/s 195(2)/ 195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer
Part C- When the aggregate of such remittances, as the case may be, exceeds five lakh rupees during the financial year and a certificate in Form No. 15CB has been obtained
Part D- To be filled up where the remittance is not chargeable to tax under the provisions of the Income-tax Act,1961 other than payments referred to under rule 37BB(3) by the person referred to in rule 37BB(2)
6. Registration process for Form 15CB
As mentioned earlier, to file Form 15CB a Chartered Accountants verification is required. So, a CA has to be added while submitting Form 15CB
● In order to add CA, go to My Account under e-filing and select Add CA
● Register my entering membership number of CA
● Select 15CB and submit
7. What is the Filing process
Login to e-Filing, upload Form 15CB, Enter PAN/TAN of the assesse, PAN of CA, Select Form Name as 15CB, Select Filing Type as Original
Upload the XML generated from the downloaded utility. Upload the signature file generated using DSC Management Utility for the XML. Digital signature is mandatory to file Form 15CB
On successfully entering all the necessary details, the form can be submitted. On submission, a message will be generated
8. Details to be filled in form 15CB
● Remitter's name and address
● Remitter's place of business
● Email address and Phone number of Remitter
● Status of Remitter (Individual/ Firm)
● Name and address of Remittee
● Nationality of Remittee
● Principal place of business of Remittee
● Details of date of remittance
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