Know all about Form 15CA & Form 15CB. Check the latest amendments made in Form 15CA and Form 15CB. Get the procedure for Furnishing Form 15CA and Form 15CB. Refer the following Section for more information regarding Form 15CA and Form 15CB.
What is Form 15CA?
It is a Declaration of Remitter and used as a tool for collecting information in respect of payments which are chargeable to tax in the hands of recipient NRI (Non-Resident). Under Section 195 of the Income Tax Act 1961, every individual is liable for making payments or to be made but credited the party already to non-residents shall deduct TDS. The RBI also order that except in cases of certain personal remittances which have been specifically exempted, no payment should be made to an NRI without furnishing an undertaking in Form 15CA accompanied by a certificate from an Accountant in Form 15CB. The main reason behind the certificate is to collect taxes at the stage when the payment is made as it may not be possible to recover the tax at a later stage from the non-residents.
Must Read: TDS on Non-Resident
How to Furnish Form 15CA?
Let us check the revised procedure for furnishing information regarding remittances being made to an NRI with effect from 1st July 2009.
- The Remitter (Person making the Payment) shall obtain a certificate from an accountant (CA) in Form 15CB.
- After that, the Remitter shall electronically upload the undertaking containing the payment details to the Income Tax department in Form 15CA.
- The Information furnished in the Form 15CA is to be filed using the information contained in Form 15CB.
- Take a print out of this filled up Form 15CA along with an acknowledgment number generated by the system.
- Form 15CA is signed by the individual authorized to sign the return of income of the remitter or the person so authorized by him in writing.
- The duly signed form Form 15CA & Form 15CB shall be submitted in duplicate to the RBI or the Authorised Dealer. The Reserve Bank of India or Authorised Dealer will then forward a copy of the Certificate and undertaking to the AO concerned.
- A Remitter who has obtained a certificate from the AO (Assessing Officer) regarding the rate at or amount on which the tax is to be deducted is not required to obtain a certificate from the CA in Form 15CB. However, the assessee is required to furnish information in Form 15CA and submit it along with a copy of the certificate from the Assessing Officer.
Download Form 15CA & Form 15CB
|1.||Information to be furnished for payments, chargeable to tax, to a non-resident not being a company, or to a foreign company.||Form 15CA|
|2.||Certificate of an accountant.||Form 15CB|
Amendments in Form 15CA and Form 15CB
The Income Tax Department has revised the rules relating to the significant changes in Form 15CA and Form 15CB. The Amendments are relating to the changes the Form 15CA and Form 15CB in respect of furnished information regarding payments made to non-resident of India under section 195 of the Act. The Revised Rules for Form 15CA and Form 15 CB are valid from 1st April 2016.
Let us take a look at the changes made in the Form 15CA and 15CB.
- A person is not required to furnish information in Form 15CA and 15CB for payment which requires no Reserve Bank of India approval.
- List of payments of specified in the Rule 37BB which does not require submission of Forms 15CA and Form 15CB has been expanded From 28 to Form 33 including payments for imports.
- Form 15CB will only be required for payments made to non-residents which are taxable, and the amount exceeds Rs. 5,00,000/-.
- The Information in 15CA and 15CB is required to be furnished only in case of taxable Foreign Remittance.
An Individual responsible for making a payment to a foreign company non-resident has to provide the following details.
When payment made is Rs. 5,00,000/- or less
For such remittances information is required in Part A of Form 15CA.
When p made exceeds Rs. 5,00,000/-
- A certificate from AO (Assessing Officer) under Section 197.
- Part B of Form 15CA has to be provided.
- Order from Assessing Officer under section 195(2) or Section 195(3).
- Part C of Form 15CA.
- Certificate in Form 15CB from an accountant.
When the payment made is not chargeable to tax
Part D of Form 15CA:
- In the following cases, no submission of information is required.
- An individual makes the remittance and it does not require prior approval of Reserve Bank of India.
- Or the remittance is of the nature specified in the list below.
|S.No||Nature of Payment||Purpose code as per RBI|
|1.||Indian investment abroad -in equity capital (shares).||S0001|
|2.||Indian investment abroad -in debt securities.||S0002|
|3.||Indian investment abroad -in branches and wholly owned subsidiaries.||S0003|
|4.||Indian investment abroad -in subsidiaries and associates.||S0004|
|5.||Indian investment abroad -in real estate.||S0005|
|6.||Loans extended to Non-Residents.||S0011|
|7.||Payment- for operating expenses of Indian shipping companies operating abroad.||S0202|
|8.||Operating expenses of Indian Airlines companies operating abroad.||S0208|
|9.||Booking of passages abroad -Airlines companies.||S0212|
|10.||Remittance towards business travel.||S0301|
|11.||Travel under basic travel quota (BTQ).||S0302|
|12.||Travel for pilgrimage.||S0303|
|13.||Travel for medical treatment.||S0304|
|14.||Travel for education (including fees, hostel expenses etc).||S0305|
|16.||Construction of projects abroad by Indian companies including import of goods at project site.||S0501|
|17.||Freight insurance – relating to import and export of goods.||S0602|
|18.||Payments for maintenance of offices abroad.||S1011|
|19.||Maintenance of Indian embassies abroad.||S1201|
|20.||Remittances by foreign embassies in India.||S1202|
|21.||Remittance by non-residents towards family maintenance and savings.||S1301|
|22.||Remittance towards personal gifts and donations.||S1302|
|23.||Remittance towards donations to religious and charitable institutions abroad.||S1303|
|24.||Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.||S1304|
|25.||Contributions or donations by the Government to international institutions.||S1305|
|26.||Remittance towards payment or refund of taxes.||S1306|
|27.||Refunds or rebates or reduction in invoice value on account of exports.||S1501|
|28.||Payments by residents for international bidding”.||S1503|
Information needed from the Client
- Details of Remittee
- Name and Status of the Remittee.
- Address of the Remittee.
- Country of the Remittee (Country to Which Remittance Is Made).
- Principal Place of the Business of the Remittee.
- Details of Remitter
- Name of the Remitter.
- Address of the Remitter.
- PAN of the Remitter.
- Principal Place of Business of the Remitter.
- E-Mail Address and Phone Number of Remitter. Status of the Remitter (Firm/Company/Other).
- Bank Details of the Remitter
- Name of Bank of the Remitter.
- Name of Branch of the Bank.
- BSR Code of the Bank.
- Details of the Remittance
- Country to Which Remittance Is Made.
- Currency in Which Remittance Is Made.
- Amount of Remittance in Indian Currency.
- Proposed Date of Remittance.
- Nature of Remittance as Per Agreement (Invoice Copy to Be Asked From Client).