Form- 15CA - 15CB Filing
Filing of the income tax form 15 CA & 15CB by an expert.
The 15CA and 15CB forms are key documents in the process of making remittances from India to foreign countries, ensuring compliance with the provisions of the Income Tax Act, 1961, particularly in the context of foreign payments.
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Table of Content
- 15CA - 15CB Filing : An Overview
- When is Form 15CB required?
15CA - 15CB Filing: An Overview:
When is Form 15CB required?:
- The remittance exceeds INR 5 lakh in a financial year.
- The remittance is of a nature that involves tax applicability, such as payment for services or royalty.
- It is required if the remittance is made for any of the specified foreign transactions under the Income Tax Act.
- Tax Compliance: Ensures that tax on foreign remittances is correctly deducted and reported as per Indian tax laws.
- Avoids Penalties: Non-filing can lead to penalties or delayed transactions.
- Transparency: Provides a transparent record of TDS deduction or exemption for both the remitter and tax authorities.
- Facilitates Bank Transactions: Banks require these forms to process foreign remittances.
- Prevents Double Taxation: Helps apply tax treaties (DTAA) to avoid paying tax twice on the same income.
- Deters Tax Evasion: Ensures the remitter follows legal tax procedures, reducing the risk of tax evasion.
- International Business: Promotes smooth cross-border trade and investment by ensuring compliance.
- DTAA Remittances: If the remittance is covered under a Double Taxation Avoidance Agreement (DTAA) with a lower tax rate or exemption.
- No TDS Applicable: When the payment is not subject to TDS (e.g., exempt payments under Section 10).
- Government Payments: Payments made by the Government of India or its authorized agencies.
- Below Threshold: When the remittance amount is below the prescribed threshold (typically INR 5 lakh).
- No TDS or Lower TDS Certificate: If a certificate under Section 197 allows no or reduced TDS.
- Payments below the threshold: When the total remittance in a financial year is below the prescribed threshold (typically INR 5 lakh).
- No TDS: If no TDS is required on the payment, and it is not subject to tax.
- Government Payments: Payments made by the Government of India or authorized government agencies.
- Self-Assessment: If Form 15CA is filed without requiring a CA certificate (for certain exempt or low-value transactions).
FAQs for 15CA - 15CB Filing
Form 15CA is a declaration by the remitter confirming the tax compliance (TDS or no TDS) for foreign remittances.
Form 15CB is a certificate from a Chartered Accountant (CA) confirming that the proper TDS has been deducted or that the remittance is exempt from TDS.
Form 15CA is required when making payments to non-residents or foreign entities above a prescribed threshold (typically INR 5 lakh in a financial year).
Form 15CB is required when TDS is applicable on a foreign remittance or if the remittance exceeds the threshold amount and TDS compliance needs to be certified by a CA.
The penalty for failing to file Form 15CA or Form 15CB is up to INR 10,000 per instance under Section 271H. The maximum penalty can go up to INR 1,00,000.
Form 15CA is filed online through the Income Tax e-filing portal by providing details of the remittance, recipient, TDS, and payment type.
Form 15CA can only be filed without Form 15CB if the remittance is below the prescribed threshold or if there is no TDS applicable. If TDS is applicable, Form 15CB must be filed first.
Form 15CA requires the following details:
• Remitter's and recipient's name, address, and PAN/TIN
• Nature of the remittance
• Amount of remittance
• TDS details (if applicable)
• Whether the remittance is subject to DTAA (if applicable)
