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Form 15CA and 15CB

• Posted by Ezybiz India May 2, 2022 Filed in Business #Form 15CA and 15CB  17 views
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  Form 15CA and 15CB‍

   

   

  Income Tax compliance in India is a cumbersome procedure involving computation of tax liability and filing of prescribed forms.

   

  One such form which is required at the time of remittance of money outside India is filing of Form 15CA and 15CB.

   

  Although normal tax assesse’s might not have heard about Form 15CA and 15CB, however, any person making remittances outside India are quite conversant about these forms

   

  This article will help you understand what these forms are, and when these forms are required to be filed.

   

  At the time of remittance of money outside India, the authorized bank asks for filing of these two forms besides other documents from the taxpayer in order to ensure smooth transfer of money outside India.

   

  What is Form 15CA?

   

  Form 15CA is a declaration form used to declare that proper taxes has been deducted from the foreign remittance made by the person responsible for it before remitting the amount.

   

  What is Form 15CB?

   

  Form 15CB is a certificate issued by the practicing Chartered Accountant certifying that taxes has been deducted from foreign remittance keeping in view the provisions of the domestic law and treaty applicable between 2 countries.

   

  When Do You Need to File Form 15CA & 15CB?

   

  As mentioned above, form 15CA and 15CB are required only at the time of remittance outside India. It is not applicable in case of receipt of money from outside India.

   

  What happens if you don't file a Form 15CA or 15CB?

   

  Filing of form 15CA and 15CB are compulsory and any noncompliance in this regard may lead to penalty upto Rs 1 lac

   

  What are the constituents of form 15CA and 15CB

   

  Normally, following details are required to be submit in form 15CA and 15CB

   

  1. Remitter Details- Name and address of the remitter and his PAN

   

  1. Remittee Details- Name and Address of the remittee

   

  1. Country of Remittee

   

  1. Details of the Banker- Name and Branch of Bank, Currency in which remittance need to be made, Amount in Foreign Currency and INR, BSR Code.

   

  1. TDS Details- TDS rate as per Income Tax Act and DTAA, Amount of TDS in Foreign Currency and INR, Date of deduction of TDS etc.

   

  1. Digital Signature- Digital signature of signing professional.

   

  How form 15CA and 15CB are filed?

   

  Previously, such forms used to be filed manually, however, now such forms are filed electronically by login into the tax department portal of the assessee.

   

  What is the role of RBI purpose code in filing form 15CA and 15CB

   

  For each type of remittances, RBI has provided separate purpose code. It may be possible that one portion of amount to be remitted is taxable whereas second portion is exempt, in such cases separate form 15CA and 15CB would be required to be filed. For example, in case of remittance of interest and principal portion of FDR, banker might ask for copies of separate form 15CA and 15CB since RBI purpose codes are different for interest which is taxable and for principal which is exempt.

   

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

   

  Form 15CA and 15CB cannot be revised, however the same may be revoked or withdrawn. Also, if form 15CB has been filed independently, the same cannot be withdrawn.

   

  However, Form 15CA can be withdrawn within 7 days from the date of Submission.

   

  Thus, form 15CA and 15CB are important forms required at the time of making foreign remittance and every assesse shall keep in mind the regulatory requirements relating to same as non filing or noncompliance may lead to penalties prescribed under the Income Tax Act.

   

   

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