15CB certificate if the TDS not deducted.

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A non-resident individual sold mutual funds and paid capital gains tax through advance tax as the mutual fund company did not deduct TDS. However, the bank requires a Form 15CB certificate to remit funds abroad. The challenge lies in filling the certificate when TDS wasn't deducted and advance tax details don't directly fit. The advice is to pay any applicable surcharge and mention advance tax paid under the TDS column to confirm full tax liability is met.

Krishna

Krishna (Querist)

18 August 2023 A non resident sold his mutual fund. But the mutual fund companies have not deduct his tds which is liable to be deducted u/s 195. Now he wants remit that money abroad from his NRO account to foreign bank. Since the tds is not deducted ; he paid all the tax liability on capital gain by way of advance tax. Now the bank wants 15CB certificate. In certificate; tds rate & tds amount is required to be mention. There is no point in 15CB to fill advance tax details. In such case how a 15CB is required to be issue? Surcharge is not applicable to him but as per sec. 195 surcharge is also required to be deduct. Surcharge is not included in advance tax. Please reply.
Thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 August 2023 Pay surcharge also and fill advance tax details under TDS column.
Issue 15CB and confirm full tax has been paid.

Krishna

Krishna (Querist)

18 August 2023 Okay sir. Sir in case of mutual funds gain tds is required to deducted on gain amount & not on sale amount no ? Since in this case gain is below 50 lakhs; surcharge will not apply no ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 August 2023 Yes, on gain amount. Surcharge not applicable in case of below 50 lacs income.

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