15 October 2019
Bank insisting on 15CA part D although no tax is due and also a certificate by CA is provided. The money was received by way of property sale by NRI. What are the options of dealing with this situation?
29 May 2020
A person making the remittance (a payment) to a Non Resident or a Foreign Company has to submit the form 15CA. This form is submitted online.
Form 15CA is a declaration of remitter which is used as a mechanism for collecting information in respect of payments which are liable to tax on behalf of recipient non-resident. This form assists the Income Tax Department in keeping eye on foreign remittances & their tax accountability. The Rule 37BB defines it as a duty of authorized dealers/banks to confirm the receptivity of such forms from the remitter.
E-filing of this form is an initiative for an effective & efficient Information Processing System which would facilitate the Income-tax Department greatly in tracking the foreign remittances accurately and effortlessly.
The Financial Institutions are now keeping a hawkeye on all such transactions and forms prior to the effectiveness of remittance. The revised Taxation Rule, 37BB, binds all the Financial Institutions to furnish Form 15CA to an income-tax authority for further proceedings after receiving it from remitter.
Applicability and parts of Form 15CA It should be kept in mind that Form 15CA is not needed to be filed when the remittance paid to a Non-resident is non taxable which interprets that the Form 15CA is filled up only when the remittance paid to a non-resident is taxable and does not surpass an amount of fifty thousand rupees and the aggregated remittance for the Financial year does not exceed two lakh fifty thousand rupees.
Note: Government has authorized the filing of 15CA/15CB via GenTDS Software.
Parts of Form 15CA
Part A – Part A of the Form is required to be filed when the remittance amount is taxable under the income tax Act 1961 and the aggregate of remittance exceeds Five lakh rupees in that particular F.Y. Part B – Part B of the Form 15CA is needed to be filled when the remittance amount exceeds five lakh rupees in the F.Y. and when an order /certificate u/s 195(2)/ 195(3)/197 of Income Tax Act has been acquired from the A.O. (Whether Nil rate or Lower rate Certificate). Part C- Part C of the Form 15CA is needed to be filled when the remittance amount in the F.Y. exceeds Five Lakh rupees during the F.Y. and a certificate in Form No. 15CB from an accountant as stated in the description below sub-section (2) of section 288 has been obtained. Part D – The Part D of Form 15CA is filled when the remittance is not taxable other than payments referred to in rule 37BB(3) by the person referred to in rule 37BB(2). Note:
It is to mandatory to upload Form 15CB before filling Part C of Form 15CA. To present the details in Part C of Form 15CA, the acknowledgment number of e-Filed Form 15CB should be given. Form 15CB is to be filled only when the remittance amount exceeds Rs 5 Lakh during the F.Y. under the income tax act 1961. The online filing of 15CA/15CB as per XML based latest scheme generation and uploading are also compulsory. You will receive a message on your screen and a confirmation email in your registered email account once you finish the entire process.
Filling Guidelines of Form 15CA The Form 15CA should be appropriately filled, signed, and submitted to the Reserve Bank of India or an authorized dealer before making the Remittance. The Form should be submitted duly filled, at the official website of the Tax Information Network (www.tin-nsdl.com). The details like PAN number, TAN number should be mentioned correctly in the Form. The complete and accurate details of the Remitter, the Remittance, and the Recipient of the Remittance should be furnished in the form. The Accountant for handling the form filling process and attesting the TDS Certificate should be appointed according to the definition given by Section 288 of the Income Tax Act of 1961. What is Form 15CB?
15CB is the Tax Determination Certificate where the CA verifies the remittance with respect to the liability provisions under Section 5 and 9 of the Income Tax Act coupled with the provisions of Double Tax Avoidance Agreements. In this form, a C.A. validates the details of the payment, TDS rate and TDS deduction as per the norms mentioned in Section 195 of the Income Tax Act, if any DTAA is applicable, and other details of nature and purpose of the remittance.
Form 15CB liability could be examined by accessing the certificate obtained from a CA in the Form 15CB. The requirement of the certificate has been stated and prescribed in Section 195(6) of the Income-tax Act.
Documents required for Form 15CA and 15 CB:- A. Details of Remitter
Remitter’s Name Remitter’s Address Remitter’s PAN Number Principal Place of Business of the Remitter E-Mail Address and Phone No. Of Remitter Status of the Remitter (Firm/Company/Other) B. Details of Remittee
Name and Status of the Remittee Address of the Remittee Principal Place of Business Country of the Remittee C. Details of the Remittance
Country to Which Remittance Is Made Currency in Which Remittance Is Made Amount of Remittance in Indian Currency Proposed Date of Remittance 5. Nature of Remittance as Per Agreement (Invoice Copy to Be Asked From Client)
D Bank Details of the Remitter
Name of Bank of the Remitter Name of Branch of the Bank BSR Code of the Bank E. Others
Father’s Name of the Signing Person Designation Of The Signing Person Here are a few major impacts of New Rule on 15CA & 15CB in short:
Applicable since 1st October 2013
The applicability of Part A of Form 15CA nullifies the applicability of the Form 15CB. Ex, the case of small payments. 28 types of payments require no information to be furnished in the form. For other types of payments, either an order or a certificate of the Assessing Officer u/s. 197/195(2)/195(3) must be obtained, or a certificate of the Chartered Accountant should be obtained. Sub-rule (2) of the revised Rule 37BB makes the furnishing of Form 15CA to the authorized dealer before the remittance of the payment.
29 May 2020
https://taxguru.in/income-tax/form-15ca-15cb-complete-details-examples.html https://www.incometaxindia.gov.in/forms/income-tax%20rules/103120000000007842.pdf
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