FAQs with regards to 15CA and 15CB
Explore essential FAQs related to Form 15CA and 15CB. Gain clarity on international transactions, compliance, and reporting requirements with our comprehensive guide.
1. When is form 15CA not required?
When the remitter makes settlement of payment according to the specified list of payments in Rule 37BB of Income Tax rules. Also, when an individual does not require RBI approval as mentioned in Section 5 of the Foreign Exchange Management Act,1999.
2. When is form 15CB required?
When the settlement of payment is not taxable, the income is taxable in the country of the remitter and the aggregate settlement of payment does not exceed Rs. 5 lacs in a financial year
3. Which are the specific payments for which form 15CA and CB is not required?
4. How is tax of remittance treated?
5. What is exemption method?
In exemption method income is deducted in the source country and not in the residence country.
6. What is tax credit method?
In tax credit method is taxed in both the countries and tax relief shall be claimed in the residence country.
7. What are rates of TDS that are applicable?
8. What are surcharge and education cess rates?
9. What are the parts in Form 15CA?
There are 4 parts namely:
• Part A- Mandatory to fill without considering if it's taxable or not and if its aggregate is not more than Rs. 5 lacs in a financial year
• Part B- Fill it along with the certificate under Section 195 (2)/ (3) / 197 of Income Tax Act which is obtained from the Assessing Officer
• Part C - Only to be filed when aggregate is more than Rs. 5 lacs in a financial year and remittance are chargeable to tax
• Part D - It is filed according to the Domestic Laws and when the remittance is not chargeable to tax
10. What details are required for filing the forms?
Details of Remitter- Name, address, TAN (if available), residential status, email, contact number, BSR code, branch of bank.
Details of Remittance- country, amount, date proposed for the making of remittance, nature of remittance according to agreement/invoice.
Details of Remittee- name, address, country, status, tax, email, identification number of territories of residence, contact number, certificate of tax residency of business, name of country in which remittance is made
Other requirements- remitter’s father’s name and designation, certificate or order from Assessing Officer, rate of conversion of the foreign currency, DSC (if any)
11. What is the penalty if inaccurate information is furnished in Form 15CA and 15CB?
If a person fails to provide or provides inaccurate information then fine of Rs. 1 lac is to be imposed.
12. Why do we need to fill Form 15CA particularly?
This form is a declaration of remitter and helps as a tool for information collection for payments that are chargeable for tax by the recipient (non-resident). It is mandatory to produce the Forms according to the revised Rule 37BB where a duty has been imposed on authorised dealers/banks for furnishing form 15CA to the Income Tax Authority received from the remitter for further proceedings under Income Tax Act.
13. What is in the new Rule that is made applicable?
