Filing of Form 15CA/CB

Form 15CA and Form 15CB are related to the process of making payments to non-residents. These forms are required as per the provisions of the Income Tax Act, 1961 in India, for certain types of remittances made to non-residents and are meant to ensure that tax is deducted and deposited appropriately for such transactions.

Breakdown of Form 15CA and Form 15CB:

1. Form 15CA:

   • Form 15CA is an undertaking or declaration required for any remittance made to a non-resident.
   • It is submitted online through the Income Tax Department’s portal for specified transactions that do not require a certificate from a Chartered Accountant (CA) or a lower withholding tax rate.
   • The form consists of various parts categorizing different types of payments, and the information provided depends on the nature and amount of the remittance.

2. Form 15CB:

   • Form 15CB is a certificate issued by a Chartered Accountant (CA) certifying details of the payment, the nature of the remittance, and the rate and amount of tax deducted or payable, as per the provisions of the Income Tax Act.
   • This form is necessary when the remittance exceeds certain thresholds or when there are specific provisions requiring a CA certificate.

Process:

• Before making a remittance to a non-resident, Form 15CA is filled online based on the information provided by the taxpayer.
• For certain categories or high-value transactions, a CA conducts an audit and issues Form 15CB certifying the nature of the remittance and tax implications.
• After obtaining Form 15CB, Form 15CA is submitted online with the details of the CA certificate.
• The completed Form 15CA along with the CA certificate (Form 15CB) is submitted to the authorized dealer bank for facilitating the remittance.

These forms are essential for ensuring that tax is deducted or paid appropriately for remittances made to non-residents, helping in tax compliance and preventing tax evasion concerning international transactions. The requirements for filling these forms may vary based on the nature and value of the transaction and the specific provisions of the Income Tax Act.