Ajay Kumar Maggidi
Quick Summary
When taxpayers are involved in making payments to Non-Residents, they shall comply with the provisions of income tax which requires the taxpayers to file Form 15CA and 15CB as applicable.
Why should Form 15CA and Form 15CB be filed?
Section 195(6) made mandatory to file Form 15CA and 15CB as applicable.
According to Section 195(6):
- The person responsible for paying any sum to a non-resident,
- whether or not chargeable under the provisions of this Act,
- shall furnish the information relating to the payment of such sum, in such form and manner, as may be prescribed.
What is Form 15CA?
- It is a self-declaration by the payer.
- The purpose of the form is to capture the information and track the foreign outward remittances.
What is Form 15CB?
- It is a certificate to be obtained from the chartered accountant.
- The purpose of the form is to ensure compliance with TDS & DTAA provisions of Income-tax.
What are the Exemptions from the filing of Form 15CA and Form 15CB?
Form 15CA & 15CB is not required to be filed:
- For Payments listed in the Exempted list (Rule 37BB)
- For Payments by individuals which does not require RBI approval
Form 15CB is not required to be filed:
- if the payments do not exceed 5 lakhs
- if the payments are not subject to tax under income tax provisions.
Can I withdraw filed Form 15CA and Form 15CB?
- Form 15CA can be withdrawn within 7 days
- Form 15CB can not be withdrawn once filed
Form 37BB prescribes rules and procedure for filing Form 15CA and Form 15CB
The below chart explains when to file Form 15CA and Form 15CB as per Income Tax Rules 37BB
FAQ :
Form 15CA is a self-declaration by the payer to capture information and track foreign outward remittances. Form 15CB is a certificate obtained from a chartered accountant to ensure compliance with TDS and DTAA provisions of the Income-tax Act.
These forms are mandatory under Section 195(6) of the Income-tax Act for any person responsible for paying any sum to a non-resident, regardless of whether it's chargeable under the Act.
Yes, filing is not required for payments listed in the exempted list under Rule 37BB or for payments by individuals that do not require RBI approval. Form 15CB is also not needed if payments do not exceed £5 lakhs or are not subject to tax.
A filed Form 15CA can be withdrawn within 7 days of filing.
No, a filed Form 15CB cannot be withdrawn once it has been submitted.
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