Q1. How money can be remitted outside India?
Ans. Whenever any money is to be remitted outside India, the same need to be reported under FEMA Regulations as well as Income Tax Act and this is done by filing form 15CA and 15CB.
Normally, AD Bankers permit remittance of money outside India when the following conditions are fulfilled:
- The amount to be remitted is from a genuine source.
- Applicable taxes have been deducted on such payments.
- CA certificate in form of Form 15CB has been obtained.
- Remitter has declared in form 15CA that proper taxes have been paid on such income.
Q2. What is Form 15CA?
Ans. Form 15CA is a declaration that is made online, by the remitter of money confirming that while making any payment to the Non-Resident, taxes has been deducted by Him.
Form 15 CA is asked by the banker in order to ensure that the proper tax on the amount to be remitted has been deducted and deposited to the revenue authorities.
The government wants to ensure that taxes on the income of Non Residents and foreign companies are deducted at source and the remitter shall confirm such deduction of tax by filing Form 15CA and 15CB.
Q3. What is Form 15CB?
Ans. Form 15CB is a certificate issued and uploaded online by a Practicing Chartered Accountant. It confirms whether the remitter is liable to deduct and deposit tax on such remittance.
Form 15CB is asked by the banker before remittance of any money outside India in order to ensure that taxes on money to be remitted outside India has been computed properly as per the provisions of the Income Tax Act, 1961 and the provisions of the Double Taxation Avoidance Agreement between remitter country and remittee country.
Only when the amount of remittance exceeds Rs 5 lac in one fiscal year, Form 15CB is required to be filled.
Q4. What type of remittances is allowed subject to the filing form 15CA and 15CB?
Ans. Bankers allowed the following credits to be remitted subject to the filing Form 15CA and 15CB
- Remittance of money from Indian Bank Account to Foreign Bank Account.
- Remittent of money from NRO to NRE Account.
- Remittance of money from NRO to Foreign Bank Account.
- The Amount credited in the bank account as Salary.
- Interest on term deposits credited in the bank account.
- The Principal portion of term deposits is credited to the bank account.
- Sale Proceeds of immovable property credited in the bank account.
- Sale proceeds of shares, mutual funds credited in the bank account.
- Rental Income credited in the bank account.
- Any other credits which are permissible to be remitted.
Q5. Under what circumstances, 2 forms 15CA and 15CB may be required?
Ans. While filing form 15CA and 15CB, the RBI purpose code needs to be mentioned in the forms. Further, the purpose code for exempt income is different from the purpose code for taxable income. Accordingly, in a situation, where the amount to be remitted outside India contains both exempted portion as well as a taxable portion, in such a situation, two different forms 15CA and Form 15CB would be required.
For Example, in the case of remittance of interest on term deposits as well as Principal portion of term deposits, normally AD Banker asks for two different forms 15CA and 15CB.
Q6. Which form shall I file first? Form 15CA or Form 15CB?
Ans. Form 15CB needs to be uploaded first before filling Part C of Form 15CA. This is because an acknowledgment number of e-filed Form 15CB is required to be filled in Part C of Form 15CA.
Q7.What is the various Components or Parts of Form 15 CA?
Ans. Form 15CA consists of 4 parts i.e. Part A, B, C, and D.
A needs to be filled by the remitter in case such remittance is taxable but the amount is less than INR 5,00,000 in a Financial Year.
B needs to be filled by the remitter in case such remittance is taxable and the amount is more than INR 5,00,000 in a Financial Year. Further, an Order/Certificate under Section 195(2)/195 (3)/197 of the Income Tax Act has been obtained from the Assessing Officer for lower/ NIL TDS Deduction.
C needs to be filled by the remitter in case such remittance is taxable and the amount is more than INR 5,00,000 in a Financial Year. Further, no Order/Certificate under Section 195(2)/195 (3)/197 of the Income Tax Act has been obtained from the Assessing Officer for lower/ NIL TDS Deduction.
D needs to be filled by the remitter in case such remittance is not taxable as per domestic tax laws.
Q8. I am filling only part A of the form 15CA, do I require to also file Form 15CB?
Ans. No. Form 15CB is required to be filed only when Part C of form 15 CA has been filled.
Q9. What details are required to be filled in form 15CB?
Ans. Following Details are required to be filled in form 15CB:
- Remitter Details– Name, Address, PAN of Remitter.
- Remittee Details– Name, Address, Country of Remittee.
- Bank Details- Name and Address of Bank, Currency, Amount in Foreign Currency and INR, BSR Code
- TDS Details– Rate of TDS under domestic law and DTAA, Amount of TDS in Foreign Currency and INR, Date of deduction of TDS etc.
- Digital Signature– DSC of a professional signing the form is required.
Q10. What details are required to be filled in form 15CA?
Ans. Following Details are required to be filled in form 15CA:
- Remitter Details– Name, Address, PAN, TAN of Remitter, Principal Place of Business, Email id, Phone No., Entity Status.
- Remittee Details– Name, Address, PAN, of Remittee, Principal Place of Business, Email id, Phone No., Entity Status of Remittee.
- Signatory Details- Details of the person signing Form 15CA like Name, Father Name, Designation
- Digital Signature– DSC of Remitter signing the form is required.
Q11. Can Form 15CA and Form 15CB uploaded on portal can be Revised or Cancelled?
Ans. There is no scope for revisions of Forms once filed. It can only be revoked or withdrawn. It may be noted that Form 15CB cannot be withdrawn, if filed, independently. However, Form 15CA can be withdrawn within 7 days from the date of Submission through the link available on the online account of the assessee on Income Tax Portal. Also, in case of Form 15CA has been filed after mentioning acknowledgement number of Form 15CB filed, then in such case, if Form 15CA is withdrawn, automatically, Form15CB will also be withdrawn.
Q 12. What is the consequences for non-filing of Form 15CA and Form 15CB?
Ans. Failure to upload form 15CA and 15CB may result in penalty upto Rs 1 lac u/s 271 of the Income Tax Act, 1961
Q 13.Is form 15CA compulsory to be filed even if the remittance is not taxable?
Ans. No, form 15CA is not required to be filed in case remittance to Non Resident is not taxable.
Q 14. My Bank is asking to file form 15CA even though the remittance is not taxable?
Ans. In such a case, a declaration may be filed with the banker explaining to them the nature of remittance and reasons as to why it is not taxable, and therefore, no need to file form 15CA. However, if bank insists, you may fill part D of form 15CA.
Q15. Can Form 15CA be withdrawn once it is filed?
Ans. Yes, there is an option to withdraw Form 15CA even after it is filed.
Q16. Who needs to sign form 15CA?
Ans. Form 15CA needs to be signed by same person who are authorized to sign the return of income of the remitter or any other person authorized by him in writing. Further, DSC is required to file form 15CA for company assessee.
Q17. We have applied and obtained certificate u/s 195(2)/195(3)/197. Which form is required to be filed by us?
Ans. In such cases, only form 15CA Part B needs to be filed. Here, form 15CB is not required to be filed.
Q18. My Company has purchased online database using corporate credit card. Do we need to file forms 15CA and 15CB?
Ans. Yes, you need to file form 15CA and 15CB even when remittance has been made using the corporate credit card for the purchase of an online database.
Q19. I want to send a gift to my brother in the USA. Do I require filing forms 15CA and 15CB or can I make the remittance only on the basis of the gift deed?
Ans. No, the remittance cannot be made merely on basis of gift deed. As mentioned earlier, you need to file form 15CA irrespective of the fact that the nature of remittance is not taxable in India. It may be noted that you are not required to file Form 15CB because it is required only when the amount is taxable in India. In this case, since the nature of remittance is as specified in the exemption list under Rule 37BB, therefore, you need to fill Part D of form 15CA.
Q20. We have filed form 15CB; however, no corresponding form 15CA has been filed. Now, we found form 15CB to be incorrect. Is the form 15CB still valid?
Ans. Form 15CB needs to be utilized against form 15CA. Since, in your case, form 15CB has not been utilized against form 15CA, it would become ineffective.
Q21. A Resident in India has purchased an immovable property from NRI and making payment to the NRO account of NRI. Does He require filing forms 15CA and 15CB?
Ans. Since payment is made in the NRO account, no money has been remitted outside India, accordingly, no need to file form 15CA and 15CB.
Q22. We have uploaded form 15CB on portal. Later, the banker has asked to make changes in the service code in form 15CB uploaded earlier. Now, we are uploading fresh form 15CB. Do, we also require fresh UDIN or old UDIN will suffice?
Ans. In such cases, better option would be revoke old UDIN and generate fresh UDIN for revised form 15CB.
Q23. Is it mandatory to quote Unique Acknowledgement of the e-filed Form No. 15CA in Form 27Q (TDS Return)?
Ans. Yes, as per latest notifications issued by CBDT vide Notification No. 11/2013 dated 19.02.2013 it is now mandatory to quote the ‘Unique Acknowledgement of the corresponding Form No. 15CA’ in the Form 27Q.