What is Form 15CA and 15CB?
As per the Income Tax Act, any payment made by a resident to a non-resident needs to be reported. Such taxpayer needs to file Form 15CA and Form 15CB. These forms include details such as the nature of payment, tax deducted (TDS) on such payment, and applicable provisions of DTAA (Double Taxation Avoidance Agreement).
It is a declaration wherein the person making payment to non-resident states that he has deducted the tax from any payments so made to the non-resident.
It is the certificate issued by a Chartered Accountant certifying that the provisions of the Double Taxation Avoidance Agreement – DTAA and the Income Tax Act have been complied with in respect of tax deductions while making the payments. Here are the following details it includes:
- Details and nature of payment made to a Non Resident
- Compliance with Section 195 of the Income Tax Act
- Rate of TDS deducted
- Applicability of the Double Taxation Avoidance Agreement
Revised Rules for Submission of Form 15CA and 15CB
The income tax department has revised the rules relating to preparation & submission of Form 15CA and Form 15CB. The revised rules became effective from 1st April 2016.
- Form 15CA and 15CB which does not require RBI approval will be not be required to be furnished by an individual for remittance.
- List of payments of specified nature mentioned in Rule 37BB, which do not require submission of Forms 15CA and 15CB, has been expanded from 28 to 33 including payments for imports
- Form No. 15CB will only be required for payments made to non-residents, which are taxable and if the payment exceeds INR 5 lakhs
Applicability of Form 15CA or 15CB
- If the amount of remittance is not chargeable to tax, then no forms are required
- If the remittance is covered under a specified exemption list, then only Part D of the Form 15CA is to be submitted
- Where remittance is less than INR 5 lakh in a particular financial year – Only Form 15CA – Part A to be submitted
- When remittance exceeds INR 5 lakh – Form 15CA – Part C and Form 15CB to be submitted
- Where remittance exceeds INR 5 lakhs and a certificate under Section 195(2)/195 (3)/197 of the Income Tax has been obtained – Form 15CA – Part B to be submitted
How to File Form 15CA and 15CB?
- Login to the e-Filing portal
Login to the e-Filing portal using valid credentials.
- File Income Tax Forms
Click on e-File > Income Tax Forms > File Income Tax Forms
- Search Form 15CA or 15CB
On the File Income Tax Forms page, select the Form 15CA or 15CB. Alternatively, enter Form 15CA or 15CB in the search box to file the form.
- Enter the required details
Click on the get started on the next page. You will be redirected to the particular form you had chosen. Enter the details.
- e-Verify the Form
After entering all the details, scroll down and click on the option to e-verify.
- Successful verification
After successful e-Verification, a success message is displayed along with a Transaction ID and Acknowledgement Number.
Form 15CB is accessed and submitted by a Chartered Accountant who is registered on the e-Filing portal. The CA must be assigned Form 15CA by the taxpayer in order to be able to certify the details in Form 15CB.
Upload of Form 15CB is mandatory prior to filling Part C of Form 15CA. To prefill the details in Part C of form 15CA, the Acknowledgement Number of e-Verified Form 15CB should be verified.
As per Rule 37BB, any person responsible for paying to a Non-Resident, not being a Company, or to a Foreign Company shall furnish such information in Form 15CA.