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Section 195 of the Income Tax Act, 1961, says that it is mandatory to deduct Income Tax from payments made to Non-Residents. This is where the concept of Form 15 CA and CB comes into existence. As per the Act and its allied rules, the person making payment/ remittance to Non – Resident holds the responsibility to furnish an undertaking (in form 15CA) attested by a Chartered Accountants Certificate in Form 15CB.
15CB is a Chartered Accountant (CA) Certificate for individuals who want to send funds/money from their NRO (Non-Resident Ordinary) Account to NRE (Non-Resident Rupee) Account net of applicable taxes (if any), and 15CA Form is a declaration of remitter (Individual).
Both these Certificates are given to the Bank’s RM for completing the Transfer of Funds.
The process related to 15 CA/CB can be explained in Five Simple Steps:
The first step is to link CA’s membership details online by accessing the Income Tax Account of our Client.
Details of Remitter
Once all the details and information required are in place, we need to prepare the 15CB Form Java Utility which is available online on “Forms (Other than ITR)” under the Downloads section. Once the documents are uploaded, an Acknowledgment Number will be generated which is mandatory for filling the 15CA Form.
Note: DSC (Digital Signature Certificate) of the CA is Mandatory to File Form 15CB online.
Form 15CA has 4 parts as mentioned below. Depending on the amount and taxability of remittance, specific parts of Form 15CA need to be filled:
| Part | Description |
|---|---|
| Part A | If remittance is taxable and the total value of such remittance or remittances during the Financial Year is less than Rs. 5 lakhs. |
| Part B | If remittance is taxable and the total value of such remittance or remittances during the Financial Year is more than Rs. 5 lakhs and an order/ certificate u/s 195(2)/ 195(3)/ 197 of Income Tax Act has been obtained from the Assessing Officer. |
| Part C | If remittance is taxable and the total value of such remittance or remittances during the Financial Year is more than Rs. 5 lakhs along with a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of Section 288 has been obtained. |
| Part D | If the remittance is not taxable other than payments referred to in rule 37BB (3) by the person referred to in rule 37BB (2). |
15CA Form is also available on the client’s income tax account. You need to fill in the details required and make sure the Amount of Funds repatriated does not exceed USD 1 Million in the current F.Y. One must fill in all the details including the Acknowledgment Number generated before finally submitting the 15CB Form online.
Both Forms once uploaded on the Income Tax Website; need to be downloaded from the Client’s Dashboard. Along with it, 2 Copies of both the forms should be provided to the Client and he or she needs to sign on Form 15CA (only on the Fourth Page). Please note that 1 Set of the Copy is for record-keeping.