What is Form 15CA?

If you are a law-abiding taxpayer, you may be interested in knowing what forms 15CA and Form 15CB are and what they entail. Form 15CA is a declaration of remittance and a tool for collecting information on payments in respect of income chargeable to tax in the hands of non-resident receivers. The form 15CA declaration is an efficient information processing system used by the Income Tax Department to track overseas remittances and assess the type of tax due.

Meaning of Form 15CA

15CA Form meaning is basically a declaration of remitter that is used to collect all the information on payment amounts that are taxable in the hands of a non-resident receiver. This is the beginning of an efficient Information Processing System that will be used by the Income Tax Department to independently track overseas remittances and their type in order to calculate the tax due.

Authorized Dealers/Banks are becoming more vigilant in ensuring that they receive such Forms prior to remittance; as per the revised Rule 37BB, they are now required to furnish Form 15CA (received from the remitter) to an income-tax authority for the purpose of any proceedings under the Income-tax Act.

The Income Tax Department has recently established an online filing system. As a result, Form 15CA applicability must be checked and filed electronically with the tax department. The evidence of online submission should then be printed. This printed copy must be sent to the bank as proof of tax clearance from the tax department.

The provision of information for payment to a non-resident who is neither a corporation nor a foreign firm in Form 15CA has been divided into four sections which are described below.

PART A: Where the remittance or aggregate of such remittances does not exceed 5 lakh rupees during the fiscal year (whether taxable or not).

PART B:  Where an order/certificate has been received from the AO under section 195 (2)/ 195(3)/ 197 of the Income Tax Act (Whether Nil rate or Lower rate Certificate).

PART C: Where the remittance, or the sum of such remittances, exceeds 5 lakh rupees within the fiscal year.

PART D: Form 15CA Part D is where the remittance is not taxed under domestic legislation.

While filing the From 15CA Part D, you need to check the eligibility. Since the Form 15CA Part D is not taxed under the domestic legislation, you need to check whether you should fill it or not.

Importance and Uses of Form 15 CA?

Form 15CA income tax is a Declaration of Remitter that is used to collect information on the transactions and payments taxable in the hands of a non-resident receiver. This is the beginning of a functional information processing system that will be used by the Income Tax Department to independently track overseas remittances and their type to establish tax due. Authorized Dealers/Banks are becoming more vigilant in ensuring that such Forms are received by them prior to remittance because, under revised Rule 37BB, they are now required to furnish Form 15CA received from remitters to an income-tax authority for the purposes of any proceedings under the Income-tax Act.

How to Fill Form 15 CA?

• The forms are available on the Income Tax e-filing website.
• If you are already registered on the site, you must log in using the correct credentials, which are generally the PAN number and the password. If he is not already registered, he must click on the “Register” button on the website and then fill in all of the required data and forms to complete his registration on the site.
• After successfully logging in to the website, click on the “e-file” option, which will bring up a dropdown list. Select the “Prepare and Submit Online Form (Other than ITR)” button.
• After that, pick ‘Form 15CA’ from the dropdown list and click ‘Continue.’
• Following submission, a pop-up box opens in which the Part of the Form 15CA most suited to the current circumstance is to be selected.
• The applicable fields must be filled out depending on whether a section of the Form 15CA is chosen.

The following are frequent fields on the Form 15CA:

• Remitter’s Full Name
• Address Specifics
• Getting in Touch
• The remitter’s residence status
• Name of the remitter’s receiver
• PAN (if available)
• Remittance information
• TDS Specifications
• The form has been validated.
• If the person is unable to complete filling up the form quickly, there is a “Save Draft” option that provides a lifeline in this respect, saving the person from having to fill out all the data again.
• After completely filling up the form, click the “Submit” button.
• If the form is successfully submitted, the following page will display the “Success” message.
• Form 15CA View and Withdrawal:
• Check out Form 15CA – Click “My Account,” then “View Form 15CA.”
• Withdrawal — On the View page, there will be a “Withdraw Form 15CA” option under the Status column. This option is only available for 7 days after the form is submitted.

Documents Required

Details of Remittee:

• Address of the Remittee
• Name and Status of Remittee
• Country of the Remittee
• Principal Place of Business
• Country of the Remittee

Details of Remitter:

• Remitter’s Name
• Remitter’s Address
• Remitter’s PAN Number
• Status of the Remitter
• E-mail ID of the Remitter and Phone Number
• Principal Place of Business of the Remitter

Bank Details of the Remitter:

• Name of Bank of Remitter
• Name of Branch of Bank
• BSR Code of the Remitter’s Bank

Details of the Remittance:

• Destination Country of Remittance
• Currency used for remittance
• Amount of Remittance in Indian currency
• Proposed Date of Remittance

Word to Remember

Double Taxation Avoidance Agreement

It is a treaty signed between two or more countries that help taxpayers avoid paying double taxes on the same income. 

What are the Information Required to File Form 15CA?

The information required to file Form 15CA includes the details of the remitter, remittee, remittance details, remitter’s bank details, and tax residency certificate of remittee.

Step-by-Step Guide to File Form 15CA

Here are the steps to file Form 15CA-

Step 1: Visit the official site of the Income Tax department

Step 2: Log in to your account by filling in the relevant details

Step 3: Under the e-File tab, select the Income Tax Forms option in the drop-down menu

Step 4: Now click on Form 15CA and then continue

Step 5: Select the relevant form type

Step 6: Fill the form with the correct information and submit the form

Once you successfully submit Form 15CA, you will receive a confirmation message in your registered email account.

What’s the Difference Between Form 15CA and 15CB?

Form 15CA is a mandatory form to be filed for foreign remittance to a non-resident. It also helps the Income tax department to Form 15CA operates based on Tax Deducted at Source, as it is impossible to collect the Tax from non-resident at a later stage.

Whereas form 15CB requires CA’s signature certifying the taxation rate and the tax type you are paying. You will also have to fill in Form 15CB’s information in Form 15CA. In form 15CA, the Chartered Accountant’s signature is in the form.

Who are Eligible to File Form 15CA?

Any person who is paying to a foreign national is required to submit form 15CA as per rule 37BB.

Key Takeaways

• Form 15CA acts as a declaration of the remitter used to collect information on taxable payments accounts.
• The 15CA form is available on the Income Tax e-filing website.
• Form 15 CA is available for everyone who needs to file a declaration form of foreign remittance outside the country.

Did You Know?

Many non-resident Indians receive income from Indian citizens, for example, in the form of rent. Assume you have rented out a residential house in India. Forms 15CA and 15CB applicability must be checked to get it and then submitted by your renter when he or she pays the rent.

Conclusion

Filing Forms 15CA-CB is critical since they contain all of the appropriate declarations and information regarding tax payments (if any) needed by all banks prior to repatriation. Compliance in matters of international remittances may make your heart race, which is why this advice is a humble attempt to make the filing procedure as painless as possible. If the method appears to be difficult for you, you may want to consider hiring a consultant for 15CA-CB filing.

If you receive taxable cash from individuals in India, ensure that your sender sends Forms 15CA and 15CB to India’s income tax agency. Your sender’s bank may refuse to handle a high-value transfer request if this paperwork is not supplied.

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