Filing of Form 15CA through new Tax Portal

 

Introduction

Income Tax department has introduced new Income Tax Portal for better user interface and with many new features. However, unfortunately, right from inception, it has been facing many glitches which have defeated the very purpose of its introduction. Most of the forms are unable to be filed through new tax portal. 

 

In the same category, are form for remittance of money outside India i.e. Form 15CA and 15CB. Inability to properly file Form 15CA and 15CB has led to frustrations amongst the tax payer and accordingly, from time to time relief has been provided by CBDT in filing such form in manual manner.

Initially, CBDT has allowed filing of Form 15CA and Form 15CB manually till 30^th June 2021 which was further extended to 15^th July 2021; then again date was extended to 15^th August 2021. Although, post 15^th August 2021, the CBDT has resumed electronic filing of such forms, however, practically it has been seen that still users are facing lot of issues in proper filing of Form 15CA and 15CB.

Filing of Form 15CA

It is an online declaration made by the remitter of money confirming that proper taxes has been deducted while making any payment to the Non Resident.

Form 15 CA is required by the banker to confirm that taxes has been paid on amount to be remitted.

 

Further, in few cases, proper certificate of Chartered Accountant in form 15CB is required for uploading form 15CA.

 

There are 4 parts of form 15CA:

 

Part A- If amount of remittance does not exceed Rs 5 lac in a Financial Year and is chargeable to tax.

 

Part B- If amount of remittance exceeds Rs 5 lac in a Financial Year and is chargeable to tax. Also, order has been taken from the AO under section 195(2)/195(3)/197

 

Part C- If amount of remittance exceeds Rs 5 lac in a Financial Year and is chargeable to tax. Also, CA certificate in form 15CB has been obtained.

 

Part D- If remittance is not chargeable to tax.

Submission of Form 15CA

The entire procedure of submission of form 15CA is online.

•  First step is to login into tax portal by using user ID and Password.
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•  Second step is to click on “efile”, then “Income Tax Forms”, then “File Income Tax forms”. Then select Form 15CA
• Third step is to choose relevant part of form 15CA and fill the required details.
•   Fourth step is to verify the details on preview page and then click proceed to e-verify.
• After successful e-verification, message with acknowledgment number will be displayed.
•  In case, part C of form 15CA needs to be filled, first of all, CA need to be added whose digital signature will be used for filing form 15CB.
• For adding CA, on tax portal, first of all, Login to e-filing portal, click on authorized partners, click on My Chartered Accountants, click Add CA, Enter membership number of the CA and click Add
•   After filling relevant details in the form, click Yes to submit the form to CA.
•   CA will submit form 15CB, after which you can either Accept or Reject form 15CA and then click on Submit. For rejecting the form, reason needs to be provided. After accepting the form, further details will be required to be filled.
•   After accepting the form, form needs to be verified using DSC or EVC
• Once form is verified successfully, success message will be displayed with transaction ID and acknowledgement number. Income Tax Return
  

Filing of Form 15CA and 15CB are compulsory for remittance of money abroad, however, it may be noted that till date of this write up, users are facing lot of difficulty in filing form 15CB through new Income Tax Portal although filing of form 15CA has been enabled on the portal.

Filing of Form 15CA and 15CB- All you want to know

 

Remittance of Money Outside India

 In case of any remittance of money outside India, the same need to be reported under FEMA Regulations and Income Tax Act.

 Normally, AD Bankers permit remittance of money outside India when the following conditions are fulfilled:

 

1. The amount to be remitted is from a genuine source
2. Applicable taxes have been deducted on such payment 
3. CA certificate in the form of Form 15CB has been obtained 
4. Remitter has declared in form 15CA that proper taxes have been paid on such Income 

 

What is Form 15CA?

 It is an online declaration made by the person remitting the money wherein he states that he has deducted the tax from any payments made to the Non- Resident. 

 The purpose of Form 15 CA is to ensure that the tax on such amount is deposited with the Government before making the remittance to the Non Resident.

 What is Form 15CB?

 It is an online certificate issued by a Practicing Chartered Accountant. 

 The purpose of Form 15 CB is to ensure that the provisions of the Double Taxation Avoidance Agreement and the Income Tax Act have been complied with while computing tax to be deducted before remitting money outside India.

 Requirement of filingof Form 15CA and 15CA 

 Filing of forms 15CA and 15CB is required in the following situations:

 

1. In case of Transfer/Remittance of money from Indian Bank to Foreign Bank Account
2. In case of Transfer of money from NRO to NRE Account
3. In case of Transfer of money from NRO to Foreign Bank Account

 What are the various Components or Parts of Form 15 CA?

Form 15CA has four parts i.e., Part A, B, C, and D.

Part A needs to be filled by the remitter if such remittance is taxable, but the amount is less than INR 5,00,000 in a Financial Year.

Part B needs to be filled by the remitter in case such remittance is taxable and the amount is more than INR 5,00,000 in a Financial Year. Further, an Order/Certificate under Section 195(2)/195 (3)/197 of the Income Tax Act has been obtained from the Assessing Officer for lower/ NIL TDS Deduction.

Part C needs to be filled by the remitter if such remittance is taxable and the amount is more than INR 5,00,000 in a Financial Year. Further, no Order/Certificate under Section 195(2)/195 (3)/197 of the Income Tax Act has been obtained from the Assessing Officer for lower/ NIL TDS Deduction.

Part D needs to be filled by the remitter if such remittance is not taxable as per domestic tax laws.

WHAT ARE THE DETAILS REQUIRED TO BE FILLED IN FORM 15CA and 15CB?

 Following Details are required to be filled in form 15CA and 15CB 

 Form 15CA- Details

1. Remitter Details- Name, Address, PAN, TAN of Remitter, Principal Place of Business, Email id, Phone No., Entity Status
2. Remittee Details- Name, Address, PAN, of Remittee, Principal Place of Business, Email id, Phone No., Entity Status of Remittee,
3. Signatory Details- Details of the person signing Form 15CA like Name, Father Name, Designation
4. Digital Signature- DSC of Remitter signing the form is required.

 Form 15CB- Details

 

1. Remitter Details- Name, Address, PAN of Remitter
2. Remittee Details- Name, Address, Country of Remittee
3. Bank Details- Name and Address of Bank, Currency, Amount in Foreign Currency and INR, BSR Code
4. TDS Details- TDS Rate under domestic law and DTAA, Amount of TDS in Foreign Currency and INR, Date of deduction of TDS, etc.
5. Digital Signature- DSC of professional signing the form is required.
   

 

What type of remittances are allowed 

 Normally, the following types of credits are allowed to be remitted by submitting forms 15CA and 15CB.

 

1. Salary credited in a bank account can be remitted
2. Interest on FDR credited in a bank account can be remitted
3. The principal portion of FDR credited in a bank account can be remitted
4. Proceeds from the sale of immovable property credited in a bank account can be remitted
5. Proceeds from the sale of shares, mutual funds credited in a bank account can be remitted
6. Rental Income credited in a bank account can be remitted

Note: In case one Income is taxable and the other Income is exempt, different parts of Form 15CA must be filled, and accordingly, two forms 15CA and 2 Form 15CB, are required. This is also because RBI codes change with the nature of remittance. For example, in remittance of interest on FDR and the Principal portion of FDR, normally, AD Banker asks for two different forms, 15CA and 15CB. NRI Tax Return Filing

Can Form 15CA and Form 15CB uploaded on the portal can be Revised or Cancelled?

There is no scope for revisions of Forms once filed. It can only be revoked or withdrawn.

It may be noted that Form 15CB cannot be withdrawn, if filed, independently.

However, Form 15CA can be withdrawn within seven days from the submission date through the link available on the online account of the assessee on the Income Tax Portal.

Also, if Form 15CA has been filed after mentioning the acknowledgment number of Form 15CB filed, then in such case, if Form 15CA is withdrawn, automatically, Form 15CB will also be withdrawn.

 

What are the consequences for non-filing of forms 15CA and 15CB?

Non-filing of form 15CA and 15CB would result in a penalty up to Rs 1 lac u/s 271 of the Income Tax Act, 1961. Income Tax E Assessment

IN WHICH CASES SUBMISSIONS OF THE FORMS ARE NOT REQUIRED
 

In following cases of remittances as specified in Rule 37BB no need to file form 15CA and 15CB

 

S. No.	Nature of Payment
1	Indian investment abroad -in equity capital (shares)
2	Indian investment abroad -in debt securities
3	Indian investment abroad-in branches and wholly owned subsidiaries
4	Indian investment abroad -in subsidiaries and associates
5	Indian investment abroad -in real estate
6	Loans extended to Non-Residents
7	Advance payment against imports
8	Payment towards imports-settlement of invoice
9	Imports by diplomatic missions
10	Intermediary trade
11	Imports below Rs.5,00,000-(For use by ECD offices)
12	Payment- for operating expenses of Indian shipping companies operating abroad.
13	Operating expenses of Indian Airlines companies operating abroad
14	Booking of passages abroad -Airlines companies
15	Remittance towards business travel.
16	Travel under basic travel quota (BTQ)
17	Travel for pilgrimage
18	Travel for medical treatment
19	Travel for education (including fees, hostel expenses etc.)
20	Postal Services
21	Construction of projects abroad by Indian companies including import of goods at project site
22	Freight insurance – relating to import and export of goods
23	Payments for maintenance of offices abroad