15CA / 15CB Filing Rules W.e.f 01.4.2016

By | April 1, 2016


 15CA / 15CB

Form No 15CA/ 15 CB

The CBDT has amended Rule 37 BB of the Income-tax Rules and made following changes which are applicable from today itself i.e. 1st April 2016:
Sec 195(6) states that The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum,whether or not chargeable under the provisions of this Act, shall furnish the information relating to payment of such sum, in such form and manner, as may be prescribed.
Rule 37BB has been amended and provides that :
The furnishing of information for payment to a non-resident, not being a company, or to a foreign company in Form 15CA has been classified into 4 parts- Part A, Part B, Part C and Part D, wherein:
Part A
Where the remittance or the aggregate of such remittances does not exceed 5 lakh rupees during the FY.  (Whether taxable or not)
Part B
Where an order/ certificate u/s 195(2) / 195(3) / 197 of Income-tax Act has been obtained from the AO. (Whether NIL rate or Lower Rate Certificate)
Part C
Where remittance is chargeable to tax under domestic law and the remittance or the aggregate of such remittances exceeds 5 lakh rupees during the FY
and a certificate in Form No. 15CB from a CA has been obtained electronically. (Utility available on Income Tax Efiling Website)
Part D
Where the remittance is not chargeable to tax under Domestic Law.
No 15CA / CB is required in following cases:-
 
  • if an individual is making remittance which do not requiring RBI approval under its Liberalized Remittance Scheme (LRS) or items mentioned in Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000
                         or
  • if remittance is in the nature of 33 items provided in the rule 37BB. The main items are as follows:-
                       –   Indian investment in Equities or Debt securities abroad
                       –   Investment in Real estate abroad
                       –   Advance or Payment for Imports including Freight & Insurance
                       –   Remittance towards business travel
                       –   Travel for Medical Treatment
                       –   Payment for Education or Postal Services
                       –   Personal Gifts and donations
 
 
Key Points
  • Form 15CA and 15CB needs to be filled electronically
  • Exemption from filling is available for 33 transactions are given in the Rule 37BB including payments for imports. 
  • Penalty of Rs. 1 lakh for each default of non-filling will be applicable.

Please find attached the copy of the Press Release dated December 17, 2015 for your kind perusal.


Press Release

Ministry of Finance

17-December, 2015

Furnishing of Information in Respect of Payments made to the Non-Resident

 

Section 195 of the Income-tax Act empowers the Central Board of Direct Taxes to capture information in respect of payments made to non-residents, whether chargeable to tax or not. Rule 37 BB of the Income-tax Rules has been amended to strike a balance between reducing the burden of compliance and collection of information under section 195 of the Act.

The significant changes under the amended Rules are:

  • No Form 15CA and 15CB will be required to be furnished by an individual for remittance which do not requiring RBI approval under its Liberalised Remmittace Scheme (LRS)
  • Further the list of payments of specified nature mentioned in Rule 37 BB which do not require submission of Forms 15CA and 15CB has been expanded from 28 to 33 including payments for imports.
  • A CA certificate in Form No. 15CB will be required to be furnished only in respect of such payments made to non-residents which are chargeable to tax and the amount of payment during the year exceeds Rs. 5 lakh.

The amended Rules will become applicable from 01.04.2016.

Notification No. G.S.R. 978(E) dated 16th December, 2015 is available on the website of the Department at www.incometax.gov.in.

 

 

One thought on “15CA / 15CB Filing Rules W.e.f 01.4.2016

  1. Pingback: Rule 37BB Income-tax Rules : payment to a non-resident | Tax Heal

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