The government has introduced Form 15CA and Form 15CB to speed up global payment settlements. This will help the economy by making transactions easier and faster.
You may be wondering what form 15CA and 15CB are. Form 15CA is used by the sender of a payment, who wants to make sure that they have paid their taxes. Form 15CB is filled out by the recipient, who wants to make sure that they have received their payment as intended.
These forms can be used for all types of global payments: wire transfers, money orders, cashier’s checks, and other similar methods of transferring funds between two parties across borders.
The government has introduced Form 15CA and Form 15CB to speed up global payment settlements. These forms are used for reporting remittance information on a quarterly basis.
Form 15CA collects information about the nature of the transaction, such as whether it is an investment or bill transfer; along with other details regarding your money transfer operations, such as how much money was sent and where it went.
Form 15CB collects similar data from you but also asks questions related to the tax status of the remitter (if applicable).
Form 15CA is used to gather information about remittances like the nature of the transaction and tax status of the remitter. The CA is responsible for filling out form 15CB, which certifies that TDS has been deducted in accordance with relevant provisions
The CA, who will fill out form 15CA and 15CB, will also need to certify that TDS on payment made has been deducted in accordance with relevant provisions.
In case of payment made by non-resident individual/parties to an Indian entity/third party company (including foreign banks), the amount received by such person shall not be eligible for exemption under section 115(1)(i) if it exceeds Rs 10 lakh.
Form 15CA (Certificate for Payment of TDS) and Form 15CB (Certificate for Payment of TDS) can be used to certify that taxes have been deducted in accordance with relevant provisions.
Form 15CA is required if you are an individual or a firm that have remitted funds overseas in any manner, including through debit cards or credit cards. The form certifies that tax has been deducted from the payment made while it was being processed at point of origin. It also states whether any penalty has been levied on such payments by banks/financial institutions.
Form 15CA can be filed by any individual residing in India who earns taxable income from sources outside of India.
Form 15CB must be filed if the taxpayer's total foreign income received or receivable in a fiscal year exceeds Rs. 5 lakhs.
To file Form 15CA, the taxpayer must have a PAN (permanent account number) and be enrolled with the Income Tax Department's e-filing system.
The form can be submitted both online and offline. To file offline, the taxpayer must first download the Income Tax online form, complete it, and then submit it to their jurisdictional Assessing Officer, along with any supporting evidence.
To file Form 15CB, the taxpayer must once again have a PAN and be enrolled on the Income Tax Department's e-filing system.
The form may now be submitted online or offline. However, unlike Form 15CA, electronic submission of Form 15CB is not allowed unless it is for foreign revenue received in relation to an approved project under section 80CCF of the Income Tax Act of 1961.
In such cases, a certified copy of authorization obtained by a competent body must be sent with Form 15CB.
The following papers must be included when filing Forms 15CA and 15CB:
1. The taxpayer's PAN
2. If appropriate, a TDS certificate
3. Bank statement or passbook with information on overseas income received
4. Form 26AS copy
5. Any further documentation
The forms provide a convenient and reliable way to make remittances, especially in cases where the sender is not familiar with the process. They also provide information on whether tax has been deducted at source or if any other government taxes may apply. In addition, they allow for quick settlement of payments by eliminating paperwork and providing support throughout the entire process
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