FORM 15CA / 15CB

Income tax is required to be deducted by the Indian transferor out of certain types of payments made to a non-resident. So, when a person plans to send any money to a non-resident, the Indian bank which is transferring the money will require that the tax payable by the non-resident recipient with respect to such amount being transferred if any is paid. If not paid, the bank will require a certificate from the Chartered accountant.

What is Form 15CA?

Form 15CA is a declaration of the transferor.

Indian Bank transferring the money to a non-resident is bound to obtain the Form 15CA from the remitter so that the same when filed online by the remitter gives information in respect of payments which are chargeable to tax in the hands of recipient non-resident.

Hence, the Indian remitting bank requires the copy of Form 15CA downloaded from the Income Tax Portal to be submitted as proof of tax compliance.

What is From 15CB?

Form 15CB is Form which is a certificate required to be issued by a Chartered Accountant. This is to confirm the complicance by the remitter (transferor) regarding rates of tax to be deducted by the transferor.

However, no reporting in Form 15CA and 15CB is to be made in case of the 33 types of foreign remittances which are listed in Rule 37BB. Click here to know the specified list of 33 transactions.

Procedure of Form 15CA / 15CB

Any reisdent who is making payment to a non-resident, or a non-resident repatriating funds to his overseas account / his NRE account shall follow the procedure as given below.

(1) Obtain a certificate in Form No. 15CB from a Chartered Accountant

(2) Furnish the information of the transaction in Form No. 15CA electronically to the website www.incometax.gov.in, through his login. The information to be furnished is in one of the following 4 parts.

(i) Part A – if the amount of payment and the aggregate of such payments made during the financial year does not exceed five lakh rupees.

(ii) Part B – if the amount of payment and the aggregate of such payments made during the financial year exceeds five lakh rupees and an order from the Income Tax Officer is available.

(iii) Part C – if the amount of payment and the aggregate of such payments made during the financial year exceeds five lakh rupees and a certificate in Form No. 15CB from an accountant is required.

(iv) Part D – if the remittances is not chargeable to tax under Income Tax Act, 1961                            

And thereafter the transferor has to print the form 15CA and after duly signing the form submit it along with form 15CB signed by the Chartered Accountant (depending on its applicability as referred above) to the remitting bank, for transferring the payment.

Taxation

Tax chargeability can be ascertained and certified by obtaining the Certificate from a Chartered Accountant in Form no. 15CB. Form 15CB is the Certificate where the Issuer Chartered Accountant examines the remittance having regard to chargeability provisions under Section 5 and 9 of Income Tax Act along with provisions of Double Taxation Avoidance Agreements with the Recipient’s Country of Residence.

 Double Taxation Avoidance Agreements (DTAA)

The Double Tax Avoidance Agreements (DTAA) are essentially bilateral agreements entered into between two countries. The basic objective is to avoid, taxation of the same income in both the countries (country of residence and country of income origination). The Provisions of DTAA override the general provisions of taxing statue of a particular country.

The Non-Resident can take the benefit of the provisions of DTAA in respect of his Interest Income from NRO accounts, Loans, Fixed Deposits, and dividends etc.

How RMC can help you in your remittances?

RMC lists out the data and documents required relating to the remittance and after examining the same identifies the tax applicable to be deducted by the remitter duly taking the benefits available under Double Taxation Avoidance Agreements.

RMC then ensures that the relevant tax is discharged by the remitter and the same is reported to the Income Tax Department so that the transferee gets the corresponding credit of the tax withheld.

RMC then prepares the Form 15CA on your behalf and submits with the Income Tax Department.

RMC according to the applicability obtains Form 15CB duly certified by a Chartered Accountant along with the Unique Document Identification Number (UDIN) generated by him to check the authenticity of the certificate.

RMC also prepares the various documents / declarations as may be required by the remitting banker.

To know more about:

Rates for Withholding of Tax

FAQ on Form 15CA / 15CB

If you want to obtain Form 15CB / file Form 15CA call +91 98494 46110 / [email protected]