Form 15CA : Any payments made by a resident to a non-resident has to be reported under the Income Tax Act. The idea behind deduction of the taxes at source and their subsequent reporting is to ensure that taxes are collected on time. Form 15CA is a declaration made by the person remitting the money wherein he states that he has deducted the tax from any payments so made to the non-resident.
Form 15CB : Form 15CB, however, is not a declaration, but a certificate issued by a Chartered Accountant ensuring that the provisions of the Double Taxation Avoidance Agreement and the Income Tax Act have been complied with in respect of tax deductions while making the payments.
It includes the following:
- Details and nature of payment made to a Non Resident.
- Compliance with Section 195 of the Income Tax Act.
- Rate of TDS deducted.
- Applicability of the Double Taxation Avoidance Agreement.
Applicability of Form 15CA and Form 15CB :
- If the amount of remittance is not chargeable to tax, then no forms are required.
- If the remittance is covered under a specified exemption list, then only Part D of the Form 15CA is to be submitted.
- Where remittance is less than Rs. 5 lakh in a particular financial year – Only Form 15CA – Part A to be submitted.
- Where remittance exceeds Rs. 5 lakh – Form 15CA – Part C and Form 15CB to be submitted.
- Where remittance exceeds Rs. 5 lakhs and a certificate under Section 195(2)/195 (3)/197 of the Income Tax has been obtained – Form 15CA – Part B to be submitted.
Parts of Form 15CA :
The form is divided into four parts, to be filled based on the scenario that is prevalent at the time. The four parts are:
To be filled irrespective of whether taxable or not and the remittance or its aggregate does not exceed Rs. 5 lakh in a financial year.
To be filled when the Certificate under Section 195(2)/195 (3)/197 of the Income Tax Act has been obtained from the Assessing Officer.
To be filled when the remittance or its aggregate exceeds Rs. 5 lakh in a financial year and that remittance is chargeable to tax.
Is filled when as per the domestic laws, the remittance is not chargeable to tax.
Procedure to File Form 15CA and 15CB Online :
- The forms can be found on the Income Tax e-filing website.
- Where a person is already registered on the site, he must log in with the accurate credentials, usually the PAN number and the password. If he is not yet registered, he must click on the “Register” option on the page and then proceed to fill in all the necessary details and fields in order to complete the registration on the site.
- Once login has taken place successfully, the “e-file” option is to be clicked on, wherein a dropdown list shall appear. The “Prepare and Submit Online Form (Other than ITR)” button is to be selected.
- Next ‘Form 15CA’ option is to be selected from the dropdown list and click on ‘Continue’.
- Upon submission, a pop-up window appears wherein the Part of the Form 15CA is to be selected based on the most suited to the present scenario.
- Based on which part of the Form 15CA is selected, the relevant fields will need to be filled. The common fields in the Form 15CA include:
- Name of the Remitter
- Address details
- Contact information
- Residential status of the Remitter
- Name of the recipient of the remitter
- PAN (if available)
- Details of remittance
- Details of TDS
- Verification of the form.
- If the person is unable to finish the form immediately, there is a “Save Draft” option that throws a lifeline in that regard, so as to not inconvenience the person of filling up all the details again.
- On completion of the form, the “Submit” button is to be selected.
- The next page will have the “Success” message provided the form is submitted successfully.
- View and Withdrawal of Form 15CA:
- View Form 15CA – Click on “My Account” and then on “View Form 15CA”.
- Withdrawal – While on the View page, under the Status column, there will be a “Withdraw Form 15CA” option. This option is exercisable only within 7 days of the submission of the form.
- The “Add CA” requisite has to be completed first.
- Under the “My Account” tab, the “Add CA” option is to be selected.
- Here, the Membership Number of the CA has to be entered.
- The Form number is to be entered next as 15CB.
- Since the CA has now been added successfully, the rest of the process may be completed by the CA himself.
- The user account of the CA must be registered on the site as a CA and not as a regular account.
- On the “Downloads” page, the Form 15CB Utility has to be downloaded. This is because the .xml file needs to be uploaded for the successful submission of the Form 15CB.
- Once the download is complete, the .xml file has to be prepared offline and ready for upload.
- On the site, under the “e-File” option, click on the “Upload Form” button and enter the following details:
- PAN of the Assessee
- PAN of the CA
- Form Name – 15CB
- Filing Type – Original
- Next, the prepared .xml file is to be uploaded and generated through the Utility.
- The DSC Management Utility has to be downloaded as well. This is beneficial in uploading the Digital Signature File in order for the submission to be complete in all respects.
- Click on the “Submit” button and await the Success page.
- View the form:
- Once the Form 15CB has been uploaded and successfully submitted by the CA, the assessee may then log in and view the form under the “Worklist” tab by selecting the “For Your Information” button.
- The status of the Form will be displayed as the case may be.
The submission of forms such as these, in reality, aren’t as complicated and tedious as they are normally believed to be. Moreover, the option of withdrawing the form presents the opportunity to retract the form when necessary.