Form 15CA & 15CB: How to File Online?
Understanding Forms 15CA and 15CB of Income Tax is essential if you are paying a non-resident. The purpose of these documents is to guarantee that the right amount of tax is withdrawn and paid to the government. To proceed with the payment, you must first complete Form 15CA, an online declaration. A Practicing CA certifies the payment information on Form 15CB and attests that any taxes withheld account for the appropriate amount according to Income Tax Act regulations. In this article, we will share a comprehensive overview of Forms 15CA and 15CB.
Table of Contents
What is Form 15CA?
Form 15CA, a declaration of remitter, is a tool used to gather data regarding payments that are subject to tax in the hands of non-resident recipients. The Income Tax Department may use this as the beginning of an efficient information processing system to track overseas remittances on its own and analyse their composition to calculate tax liabilities.
Since the revised Rule 37BB requires Authorised Dealers/Banks to provide Form 15CA (received from the remitter) to an income-tax authority for any proceedings under the Income-tax Act, they are now being more watchful in making sure that such Forms are received by them before remittance is affected.
The Income Tax Department has recently established an online information filing system. As a result, the tax department must receive the Form 15CA electronically. Following that, a paper copy of the online submission proof is required. This copy must be provided to the Bank as verification of the tax department's clearance for taxes.
What is Form 15CB?
The Form that needs to be signed by a chartered accountant is Form 15 CB. This serves as a sort of confirmation that you have paid the appropriate rates and taxes. Form 15CA must be filed with specific information taken from Form 15CB.
It might seem at first that if the payment or remittance to the non-resident Indian is not subject to tax, Form 15CA does not need to be completed. The Income Tax (Fourteenth Amendment) Rules, 2013 state that the following categories of international remittances are exempt from reporting requirements in Forms 15CA and 15CB as of October 2013, under Rule 37BB.
Information Required For Filing a Form 15CA and 15CB
Details of Remitter
Name
Status of the remitter (firm/company/other)
Address
Principal place of business
E-mail address and phone number
Details of remittee
Name
Status of the remitter (firm/company/other)
Address
Country
Principal place of business
Details of the remittance
Country to which remittance is made
Proposed date of remittance
Amount of remittance in Indian currency
Currency in which remittance is made
Nature of remittance as per agreement
Bank details of the remitter
Name of bank of the remitter
Name of bank branch
BSR Code of the bank
Others
Father’s name of the signing person
Designation of the signing person
Documents from the remittee
Form 10F filled by the person authorized by the remittee
Tax residency certificate from the remittee
Certificate that the remittee does not have a permanent establishment in India
Applicability of Form 15CA and Form 15CB
When you remit money abroad, you must file Forms 15CA and 15CB in accordance with the Income Tax Act of 1961. The type of overseas remittance and the amount you want to remit will determine which form needs to be used. As you gather information on filing returns electronically, it's critical to comprehend the forms' applicability.
Form 15CA- An Overview
Objective:
Monitor overseas payments and remittances to make sure the payer is complying with Income Tax Act regulations.
Types of Payments:
Payables to non-residents include royalties, dividends, interest, salaries, professional fees, technical fees, and other payments.
Applicability:
If you are paying a non-resident or foreign corporation, you must use Form 15CA regardless of whether the transaction is tax deductible.
The remitter may be a domestic or international firm, a resident or non-resident individual.
Form 15CA declarations are required when income originates, accrues, is received, or is assumed to accrue, arise, or be received in India, in compliance with Section 5 of the Income Tax Act, 1961 rules.
Elements of Form 15CA
Part A:
To be completed for remittances taxable up to Rs 5 lakhs.
Part B:
To be completed for taxable remittances over Rs. 5 lakh, provided the Assessing Officer has issued an order or certificate in accordance with Sections 195(2), 195 (3), and 197 of the Income Tax Act.
Part C:
To be completed in conjunction with a certificate in Form 15 CB that is obtained from a chartered accountant for taxable remittances over Rs. 5 lakh.
Part D:
To be completed if the IT Act of 1961 does not impose a tax on the amount paid to the NRI.
When is Form 15CA not needed?
If the remittance is made using the payment list described in Rule 37BB of the Income Tax Rules, Form 15CA is not needed.
When the Foreign Exchange Management Act (FEMA), 1999, Section 5, does not require the individual sending the remittance to obtain prior approval from the RBI.
Process for Filing Form 15CA Online
The Income Tax e-filing platform is used to electronically file Form No. 15CA, which is then validated by an electronic verification code (EVC) or digital signature.
Go to www.incometax.gov.in to access the income tax portal.
Phase 1: Adding your Chartered Accountant
After choosing the "Authorised Partners" option, go to the "My Chartered Accountant(s)" page by selecting "My Chartered Accountant (CA)" from the drop-down menu. Select the "Add CA" option.
After that, you will see a request to enter the "Membership Number of the CA".After selecting "Add," you will be asked to provide "Confirmation."
There will be a notice that reads, "Request for adding CA has been submitted successfully, it is pending acceptance by the CA."
Phase 2: E-filing Form 15CA
Go to "e-File" > after logging into the e-Filing site. "Tax Forms for Income" > 'Save Income Tax Documents' > "Send in Form 15CA." (You will be taken to the "File Income Tax Forms" page. Select Form No. 15CA by clicking on "Others (Source of Income not relevant)." As an alternative, you can find it by typing Form No. 15CA into the search box.)
Click "Let's Get Started" on the "Instructions" page now.
Enter "Original/Revised" as the "Filing type" on the "Information for payment to Non-Resident" page, choose the financial year, and click "Continue."
Select the applicable part in Form No. 15CA from Parts A, B, and C. For instance, if the total amount remitted during a financial year is less than Rs 5 lakh, Part A is applicable. Conversely, if you have been granted assessing officer (AO) permission in accordance with Sections 195(2), 195(3), or 197, Part B is relevant. However, if a transfer, or the total of such remittances, exceeds Rs 5 lakh in a financial year, Part C is applicable and an accountant's certificate in Form No. 15CB is necessary. If a remittance is not subject to ITA taxation and no withholding tax is necessary, Part D will apply.
At this point, you need to enter the relevant details in the mentioned sections in all four parts of the form. An acknowledgment number and transaction ID are shown in a success message that appears when the e-verification procedure is finished. You must write down the Transaction ID and Acknowledgment Number. You will receive a confirmation message on the email address and phone number you registered with the income tax e-filing system.
Form 15CB- An Overview
Objective:
The certificate that the CA issues demonstrates that the payment complies with the relevant tax regulations and helps to prevent future tax disputes or penalties.
Applicability:
A chartered accountant must file Form 15CB in order to make the reimbursement (CA).
When a remittance is taxable to a non-resident or a foreign corporation, the form is needed.
When the remittance amount is above Rs 5 lakh.
When the Assessing Officer (AO) has not issued an order.
Elements
Part A:
Information on the remitter, the beneficiary, and the type of remittance
Part B:
In this section, the Chartered Accountant (CA) must confirm that the terms of the Double Taxation Avoidance Agreement and the Income Tax Act have been followed, as well as offer specifics on the pertinent articles and sections.
Part C:
The CA must attest to the accuracy and truthfulness of the data on the form in Part C.
Annexure: You can use this optional appendix to the form to provide other details or information.
When is Form 15CB not needed?
If the payment is not taxable in India, Form 15CB is not needed.
If the remittance is remitted to the remittee's home country and that nation views the income as taxable.
Where "Part-A" of Form 15CA is to be completed, that is, if payments do not exceed Rs Five Lakhs in a fiscal year, Form 15CB is not necessary.
The amount remitted by an individual is not above the RBI's specified limit if it is not for a foreign tour or payment for the acquisition of any foreign asset.
The amount remitted by a person to pursue education overseas is not above the ceiling set by the RBI.
If a certificate under AO u/s 197 or 195(2) / (3) has been acquired, Form 15CB is not necessary.
Process for Filing Form 15CB Online
The prerequisite "Add CA" needs to be finished first.
You must choose the "Add CA" option found under the "My Account" menu.
The CA Membership Number must be put here.
The next number to be input is 15CB for the form.
Now that the CA has been successfully added, he or she may do the remaining steps themselves.
The CA's user account needs to be created on the website as a CA account, not just any old account.
The Form 15CB Utility needs to be downloaded from the "Downloads" tab. This is due to the fact that the Form 15CB cannot be submitted successfully without the.xml file being supplied.
After the download is finished, the.xml file needs to be ready for uploading and offline preparation.
Click the "Upload Form" button and fill out details on the website under the "e-File" option. These include the assessee's PAN, the assessor's PAN, and Form Name: 15CB.
The ready.xml file must then be submitted and generated via the Utility. File Type: Original.
The DSC Management Utility needs to be downloaded. This is helpful for submitting the digital signature file so that the submission is comprehensive.
Press the "Submit" button, then watch for the Success page to appear.
See the form here. After the CA has uploaded and successfully submitted the Form 15CB, the assessee can log in and examine the form by clicking the "For Your Information" option under the "Worklist" page. Whenever possible, the Form's status will be shown.
Conclusion
The process of filing these forms is simpler than you imagine. If you still find them overwhelming, you can seek expert advice and guidance from a CA to complete them without hassles and submit them easily.
FAQ
Q1. Who has to submit Form 15CA-15CB?
The person in charge of remittances outside of India is required to file Forms 15CA and 15CB. The party making the payment to a non-resident or foreign corporation can be an individual, a business, or any other type of entity.
Q2. What makes Form 15CB different from Form 15CA?
A declaration form, Form 15CA, is what the remitter gives the bank. Simultaneously, a certificate issued by a CA to confirm the deduction of taxes and the fulfilment of further regulatory obligations is known as Form 15CB.
Q3. Who can use Form 15CB?
A chartered accountant (CA) who has registered on the e-filing portal submits and views Form 15CB. To certify the information in Form 15CB, the taxpayer must assign Form 15CA to the CA.
Q4. How is Form 15CB supposed to be checked?
The Digital Signature Certificate (DSC) is the sole method for e-verification of Form 15CB. The CA DSC needs to have an account on the e-Filing site. The deadline for filing Form 15CB is not specified. However, it needs to be turned in before the money is transferred.
Q5. Is Form 15CB submission mandatory?
No, filing Form 15CB is not required. Form 15CB is an event-based form that must be completed only if, within a financial year, the amount sent exceeds Rs. 5 lakh and you are required to provide an accountant certificate as described by Section 288 of the Income Tax Act, 1961.
Q6. What are the repercussions for failing to file Form 15CA and 15CB?
An assessee who is required by section 271I of the Income Tax Act, 1961 to file Form 15CA 15CB is subject to penalty provisions if he fails to do so before making a remittance to a non-resident. Even if the person provided false information, the aforementioned criminal clause will apply. The assessing officer may demand that the assessee pay a penalty of Rs. 1 lakh for non-compliance.
Q7. Is it possible to amend or cancel a filed Form 15CA form 15CB?
It is possible to remove Form 15CA within 7 days after the submission date. On the website of the relevant Assessee, there will be an option to withdraw the completed form.
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