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).
Form 15CA
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.
Form 15CB
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.
FAQs
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.
Why the extension?
As per the Income Tax Act of 1961, it was mandatory to submit Form 15CA/15CB electronically. However, taking into account the inconvenience of the taxpayers to furnish the forms electronically, it was decided that taxpayers could submit the Forms manually to the authorized dealer manually till 30th June 2021.
However, the deadline has been further extended and taxpayers can submit the Forms manually till 15th July 2021.
I have received an email for deduction of TDS on dividend. It mentions that I should submit Form 15G if I want TDS to be deducted at lower rate. What happens if I dont submit Form 15G?
Form 15G is a document submitted by the investor for deduction of TDS at lower rate or nil rate. It is not mandatory to submit Form 15G to the Company.
Thus, if you do not submit Form 15G to the Company, you would still receive the dividend. However, if the dividend amount exceeds INR 5,000, the shareholder would receive the dividend after deduction of TDS at 10% (reduced to 7.5% for FY 2019-20)
Have you received an email for deduction of TDS on dividend - Read more here - TDS on Dividend paid in FY 2020-21
Hi Quicko,
Are there any forms or documents that i need to file while applying for a bank fixed deposit? I want to know what are the tax benefits if i invest in a Fixed deposit.
Hoping for a prompt reply.
Form 15G/ Form 15H is one of the form which is used to make sure that TDS is not deducted from your income. If your tax liability for a year is zero then you can file Form 15G or Form 15H with the deductor.
Moreover, fixed deposits also provide tax benefits under section 80C of the Income tax Act.
Hope this helps!
Hi @Linson_Thelappillil
Form 15CA is to be filed by the payer on the income tax portal.
Read about the applicability and revised submission rules for Form 15CA and/or 15CB here.
Hope this helps.