Explore all the details you need about 15CA - 15CB Filing, tailored for your needs.
If you are an Indian resident making payments to a foreign entity or receiving payments from a foreign entity, it is mandatory to comply with the legal provisions of the Income Tax Act 1961. According to the Act, you must file Form 15CA and Form 15CB with the tax authorities before remitting funds to a foreign entity.
Filing these forms can be complex, requiring extensive knowledge of tax laws and regulations. Solocorp can assist you in navigating the process of filing Form 15CA and Form 15CB with ease. Our team of experts ensures that your compliance requirements are met without any hassle.
As per Section 195 of the Income Tax Act 1961, any individual or entity responsible for making payment to a non-resident, including a foreign company, must deduct income tax at the applicable rate before the payment is made.
The remitter must also submit an undertaking in Form 15CA, which provides details of the payment being made to the non-resident. Additionally, a certificate in Form 15CB, attested by a chartered accountant, is required for payments exceeding INR 5 lakh. This certificate provides details of the nature of the payment, the tax rate applied, and the amount of tax deducted.
Form 15CA is a declaration of remittance made to a non-resident by an individual or a company. It is a mandatory form to be submitted online on the income tax department's website before remitting to a non-resident. The purpose of this form is to enable the income tax department to track foreign remittances and ensure that the remitter is paying taxes according to the provisions of the Income Tax Act.
Form 15CB is a certificate issued by a Chartered Accountant (CA) under Section 195(6) of the Income Tax Act, 1961, for making payments to non-residents or foreign companies. It verifies that the payment being made complies with the provisions of the Income Tax Act and Double Taxation Avoidance Agreement (DTAA), if applicable, between India and the foreign country.
Both Form 15CA and Form 15CB are essential for ensuring timely and accurate reporting of payments made to non-residents and for ensuring that taxes are collected on time.
Form 15CA and 15CB are applicable for making foreign remittances under India's Income Tax Act 1961. The applicability of these forms depends on the nature and amount of the remittance.
Form 15CA is applicable to any person intending to make a remittance to a non-resident or foreign company, irrespective of whether the remittance is subject to tax. The remitter can be a resident, non-resident, domestic company, or foreign company. A declaration is required when the income accrues, arises, is received, or is deemed to accrue, occur, or be received in India, as per Section 5 of the Income Tax Act.
Form 15CB must be filed by a Chartered Accountant (CA) when the remittance is made. This is required when the remittance to a non-resident or foreign company is taxable, the payment exceeds INR 5,00,000, or when an order/certificate has not been received from the Assessing Officer (AO).
Form 15CA is not required in the following circumstances:
As per the latest rules and regulations, the payments where Form 15CA and Form 15CB are not required include the following:
Form 15 CA/15CB is segregated into sections based on various situations. The applicant needs to go through the 15 CA and CB form and fill in the proper details in the relevant section:
Form 15 CA has four parts based on the amount of remittance and the requirement of other certificates or orders under the Income Tax Act.
Form 15CB has various parts, each serving a different function for the purpose of verifying and certifying the remittance details.
The penalty for not filing or late filing of 15 CA and CB form is Rs. 10,000 per instance
To file Form 15 CA and 15CB, the following details are required:
The process for filing Form 15 CA and Form 15CB is outlined below. Ensure compliance with all necessary regulations to avoid penalties or legal issues.
Before filing Form 15CA, ensure that the Income Tax Department issues a valid Permanent Account Number (PAN).
If the remittance exceeds INR 5 lakhs, Form 15CB must be filed by a Chartered Accountant (CA) certifying that the remittance is taxable in India and the applicable taxes have been paid.
The person making the remittance must fill out Form 15CA online on the Income Tax Department's e-filing website, providing details of the remitter, the remittee, the nature of the remittance, and the remittance amount.
If Form 15CB is required, the remitter must obtain a certificate from a CA in Form 15CB.
Once the forms are filled and certified, the remitter must upload Form 15CA and Form 15CB on the Income Tax Department's e-filing website.
After submitting Form 15CA, you will receive an acknowledgment with a unique number. Keep this acknowledgment for future reference.