How to file 15CA and 15CB

What is form 15CA

Form 15CA is the form which is used when any payment have made to resident person to non-resident person has to be reported under the Income tax Act, The purpose behind this deduction at source is to ensure that the tax has collected on time. Form15CA is the kind of declaration to the government by the person who are remitting the money in which the person states that he has deducted the tax on the payment made to non-resident.

What is form 15CB

Form 15CB is not the declaration but the certificate which is certified by the charted accounted which ensures that the provisions of the double taxation avoidance agreement and the income tax act have been done while making the payment.

Form 15CB includes all these followings

  • Rate of TDS deducted
  • Compliances with section 195 of the income tax act
  • Nature and the details of the payment which have made to the non-resident.
  • Applicability of the double taxation Avoidance agreement.

Applicability of Form 15CA and form 15 CB

  • If the amount which is remitted to the non-resident is not chargeable under income tax, then form 15CA will not be required.
  • If the remittance is specified by the government under the exemption list then only Part D of the form 15CA will be submitted.
  • When the amount of remittance is less than the amount of 5 lakh in the financial year then only Part A of the form 15CA will be required.
  • When the amount of remittance is exceeds the amount of 5lakh then form Part C of the form 15CA and the form 15CB will be required.
  • When the remittance exceeds the amount of 5lakh and a certificate under section 195(2)/195 (3)/ 197 of income tax has obtained then Part B of the form 15CA will be required.

These following are the part of the form 15CA with the brief explanations.

The form 15CA is divided into four parts which is required at the different scenario.

Part A: – part A will be required to filled whether the amount are taxable or not and the remittance amount does not exceeds the limit of 5lakh.

Part B: – part b will be required to file when the certificate under section 195(2)/195(3)/197 of income tax Act has been obtained by the assessing officer.

Part C: – part c will be required to file the amount of remittance exceeds the amount of 5lakh in the financial year and the remitted amount are chargeable to tax.

Part D: – part d will be required to be file when according to the law the remittance are not chargeable to tax.

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