15CA/15CB Filing
Forms 15CA and 15CB are essential for remitting money to non-residents in India, ensuring compliance with tax regulations and proper documentation of foreign payments.
Overview of Forms
- ✔ Form 15CA: This is a declaration form that must be filed by a person making a remittance to a non-resident. It provides information about the payment and ensures that any applicable tax has been deducted. Required for remittances exceeding ₹5,00,000.
- ✔ Form 15CB: Certificate by a Chartered Accountant confirming TDS compliance. Mandatory when remittance exceeds ₹5,00,000 and is taxable.
Filing Requirements
When to File: Form 15CA must be filed for any taxable remittance to a non-resident exceeding ₹5,00,000 in a financial year. For remittances under ₹5,00,000, only Part A of Form 15CA is required.
Form 15CB is required when remittance exceeds ₹5,00,000 and is taxable. It must be prepared by a CA who verifies TDS compliance.
Parts of Form 15CA:
Part A: For remittances up to ₹5,00,000 where TDS is applicable.
Part B: For remittances backed by a certificate under Section 195(2), (3), or (197) of the Income Tax Act.
Part C: For remittances exceeding ₹5,00,000 that are taxable.
Part D: For remittances not chargeable to tax under Indian law.
Filing Process
Procedure for Filing Forms 15CA and 15CB
- Step 1 Online Submission through Income Tax Department's e-filing portal
- Step 2 Ensure all remitter and remittee details, payment nature, and TDS info are accurately filled
- Step 3 Gather necessary documents (e.g., Tax Residency Certificate, bank details)
- Step 4 CA prepares Form 15CB certifying compliance with DTAA and TDS rules
Conclusion
Importance of Filing
Filing Forms 15CA and 15CB is crucial for compliance with Indian tax laws regarding foreign remittances. Consulting a Chartered Accountant is advised to ensure timely, accurate submission and to avoid penalties, ensuring smooth remittance processing.
