Want to do remittance of Income- Must know about Form 15CA and 15CB

In recent years, remittances of funds between the Indian Residents and Non-Resident Indians have become a common thing. It becomes difficult to collect taxes and track cases on later stages from NRIs, therefore for the same Form 15CA and 15CB are widely used. It is a tool for collecting taxes and keeping a proper track of the remittance of funds done outside India.

Form 15CA:

It is used a measure or tool for gathering and collecting information about all the payments and remittance of funds that are chargeable with taxes in the hands of the Non-Resident Indian. The remitter uses this form as a declaration regarding the tax liabilities that have arisen during the made payments.

Through Form 15CA the Income Tax Department can easily keep a check on the all the remittance of funds made to foreign and can determine the nature of the payments to calculate the tax liability on the income.

Is Form 15CA compulsory?

It is compulsory for the NRIs to file Form 15CA for all the remittance of funds and payments that exceed Rs.5 Lakh in a financial year.

The taxation authorities have made it very clear that this form is not required in cases where the amount of the remittance is not chargeable with taxes. Rule 37BB gives a detailed list of all the income accrued from various sources for which no Form 15CA and 15CB is required to be filed.

Form 15CB:

Form 15CB is used in the remittance of funds and payments where double taxes have to be avoided under the Double Tax Avoidance Agreement (DTAA). It is also used to determine any tax deductions provided by the Income Tax Rules. Form 15CB can be said as a certificate issued by a Chartered Accountant after thorough examination of such payments. It includes the details of the remitter, remit tee, nature of the remittance of funds and other necessary details.

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Procedure for Filling Form 15CA and 15CB:

The Form 15CA has to be filed through online mode on the official website of the income tax authority. It is necessary to furnish all the details of the remitter and the remit tee in the form. Also, to file the form a person must have a valid PAN or Tan Number. Form 15CA has four parts that must be duly filled. These four parts areas follows-

·         PART A: This is filled in when the aggregate of the remittance of funds does not exceed Rs.5 Lakh in a particular financial year either taxable or not.

·         PART B: This filed when a nil rate or lower rate certificate in order as per section 195(2), section 195(3) and section 197 of the Income Tax Act, 1961, has been issued by the Assessing Officer.

·         PART C: It is filed when the remittance of funds or its aggregate exceeds Rs.5 Lakh in a particular financial year.

·         PART D: This is to be filled in where the remittance is not chargeable with domestic law taxes.