As per section 195 of the Income Tax Act, on making payment or remitting any money to non-resident, tax is required to be deducted for any sum which is taxable under the Income Tax Act, 1961. The bank has the responsibility to check whether the tax was paid or not. If TDS is not deducted or not paid; it will be checked if it is certified by the Chartered accountant or the Assessing Officer. But there are at least 28 types of foreign remittance where you do not require any submission of Form 15CA or Form 15CB.
What is 15CA Form?
Form 15CA is a declaration of payer or remitter and is used as a tool for collecting information in respect of payments which are chargeable to tax in the hands of recipient non-resident. This is utilized by the Income tax Department to independently track the foreign remittances and their nature to determine tax liability.
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Authorised Dealers/ Banks are now becoming more active in ensuring that such Forms are received by them before remittance is affected, since now as per the revised Rule 37BB, a duty is casted on them to furnish Form 15CA (received from the remitter) to an income-tax authority for the purpose of any proceedings under the Income-tax Act. Form 15CA is required to be filed online with the tax department. Its print out as a proof is required to be given to the Bank for tax clearance from the tax department.
What is 15CB Form?
Form 15 CB is Form which is required to be signed by a Chartered Accountant. This is a kind of certification regarding rates and right kind of tax paid by you on making payment to non resident. Certain details are required from Form 15CB at the time of filing Form 15CA.
As per Income Tax (Fourteenth Amendment) Rules, 2013, No reporting in Form 15CA and 15CB is to be made in case of the following nature of foreign remittances since October 2013 has been provided in Rule 37BB.
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CBDT has granted extension in e-filling form 15CA/ 15CB till15th August 2021. The official announcement is as follows-
CBDT grants further relaxation in electronic filing of Income Tax Forms 15CA/15CB
As per the Income-tax Act, 1961, there is a requirement to furnish Form 15CA/15CB electronically. Presently, taxpayers upload the Form 15CA, along with the Chartered Accountant Certificate in Form 15CB, wherever applicable, on the e-filing portal, before submitting the copy to the authorized dealer for any foreign remittance.
In view of the difficulties reported by taxpayers in electronic filing of Income Tax Forms 15CA/15CB on the portal www.incometax. gov.in, it had earlier been decided by CBDT that taxpayers could submit Forms 15CA/15CB in manual format to the authorised dealer till 15th July, 2021.
It has now been decided to extend the aforesaid date to 15th August, 2021. In view thereof, taxpayers can now submit the said Forms in manual format to the authorized dealers till 15th August, 2021. Authorized dealers are advised to accept such Forms till 15th August, 2021 for the purpose of foreign remittances. A facility will be provided on the new e-filing portal to upload these forms at a later date for the purpose of generation of the Document Identification Number.
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