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Submission of Form 15CA and 15CB

Making payments outside India requires certain compliances. One such compliance is to submission of Form 15CA and 15CB, when required. The various scenarios where you need to submit these forms have been discussed in this article.

 

The income tax department has revised the rules relating to preparation & submission of Form 15CA and Form 15CB .

The significant changes are as follows

  • Form 15CA and 15CB will be NOT be required to be furnished by an individual for remittance, which does not require RBI approval
  • List of payments of specified nature mentioned in Rule 37BB, which do not require submission of Forms 15CA and 15CB, has been expanded from 28 to 33 including payments for imports.
  • Form No. 15CB will only be required for payments made to non-residents, which are taxable and if the payment exceeds Rs. 5 lakhs.

A person responsible for making a payment to a non-resident or to a foreign company has to provide the following details –

When payment made is below Rs 5 lakh

  • For such payments information is required in Part A of Form 15CA

When payment made exceeds Rs 5 lakh

  • Part B of Form 15CA has to be provided
  • Certificate in Form 15CB from an accountant
  • Part C of Form 15CA

When the payment made is not chargeable to tax under IT Act

  • Part D of Form 15CA
  • In the following cases, no submission of information is required
    • The remittance is made by an individual and it does not require prior approval of Reserve Bank of India [as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000]

The remittance is of the nature specified in the list below:

Rule 37BB

Sl. No.

Nature of Payment

1Indian investment abroad -in equity capital (shares)
2Indian investment abroad -in debt securities
3Indian investment abroad-in branches and wholly owned subsidiaries
4Indian investment abroad -in subsidiaries and associates
5Indian investment abroad -in real estate
6Loans extended to Non-Residents
7Advance payment against imports
8Payment towards imports-settlement of invoice
9Imports by diplomatic missions
10Intermediary trade
11Imports below Rs.5,00,000-(For use by ECD offices)
12Payment- for operating expenses of Indian shipping companies operating abroad.
13Operating expenses of Indian Airlines companies operating abroad
14Booking of passages abroad -Airlines companies
15Remittance towards business travel.
16Travel under basic travel quota (BTQ)
17Travel for pilgrimage
18Travel for medical treatment
19Travel for education (including fees, hostel expenses etc.)
20Postal Services
21Construction of projects abroad by Indian companies including import of goods at project site
22Freight insurance – relating to import and export of goods
23Payments for maintenance of offices abroad
24Maintenance of Indian embassies abroad
25Remittances by foreign embassies in India
26Remittance by non-residents towards family maintenance and savings
27Remittance towards personal gifts and donations
28Remittance towards donations to religious and charitable institutions abroad
29Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.
30Contributions or donations by the Government to international institutions
31Remittance towards payment or refund of taxes.
32Refunds or rebates or reduction in invoice value on account of exports
33Payments by residents for international bidding.

 

Frequently Asked Questions

  • What are consequences involved for Non filing of Form 15CA 15CB?
    If an Assessee who is required to file Form 15CA 15CB fails to furnish the same before making remittance to a non resident, then he has shall be liable to penalty provisions under section 271I of the Income tax Act, 1961. Such Penal provision shall be attracted even if the person furnished inaccurate information. The amount of penalty which the Assessing officer may ask the Assessee to pay for Non compliance is Rs.1lakhs.
  • Can Filed Form 15CA form 15CB be revised or cancelled
    Yes, Form 15CA can be withdrawn within 7 days from the date of Submission. The link to withdraw the submitted form will be available on the website of the Assessee concerned.
     
    Read more about NRI Taxation
    Submission of Form 15CA and 15CB
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