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Form 15CA & 15CB – Revised rules – NRI / Non-resident Payments

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As per the revised rule, Form 15CA/CB is APPLICABLE only if a person responsible for paying to a non-resident, any interest or salary or any other sum chargeable to tax under the provisions of the Act.

It means, NO CA Certificate in Form 15CB and NO furnishing of Form 15CA to the Income Tax department for any payment or money transfer out of India that is NOT Taxable.

As a result, Form 15CA/CB may not be required for the transfer from NRO to NRE or for outward remittance from NRO funds. 

 

2. For the nature of the payments contained in the “Specified List” (nature changed from 39 to 28), No information to be submitted, i.e. No CA certificate in Form 15CB and No Form 15CA.

3. For payment that is taxable but does not exceed Rs. 50,000 or aggregate of payment does not exceed Rs. 250,000 in a financial year, Only Form 15CA Part A to be furnished.

4. For any other payment, updated CA Certificate in Form 15CB to be obtained and revised Part B of the Form 15CA to be furnished to the Income Tax department.

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INCOME-TAX (FOURTEENTH AMENDMENT) RULES, 2013 – SUBSTITUTION OF RULE 37BB AND FORM NOS. 15CA AND 15CB

NOTIFICATION NO. 67/2013 [F. NO. 149/119/2012-SO (TPL)]/SO 2659(E), DATED 2-9-2013

In exercise of the powers conferred by sub-section (6) of section 195 and section 192, section 194B, section 194BB, section 194E, section 194LB, section 194LC, section 194LD, section 196B, section 196C, section 196D read with section 295 of the Income-tax Act, 1961 (43 of 1961) and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue, issued by the Central Board of Direct Taxes vide number S.O.2363(E) dated the 5th August, 2013 published in the Gazette of India, dated the 5th August, 2013, the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. (1) These rules may be called the Income-tax (14th Amendment) Rules, 2013.

(2) They shall come into force on the 1st day of October, 2013.

2. In the Income-tax Rules, 1962 (hereafter referred to as the said rules), for rule 37BB, the following rule shall be substituted, namely:—

“37BB. Furnishing of information by the person responsible for making any payment including any interest or salary or any other sum chargeable to tax, to a non-resident, not being a company, or to a foreign company—(1) Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or salary or any other sum chargeable to tax under the provisions of the Act, shall furnish the following, namely:—

(i)   the information in Part A of Form No.15CA, if the amount of payment does not exceed fifty thousand rupees and the aggregate of such payments made during the financial year does not exceed two lakh fifty thousand rupees;
(ii)   the information in Part B of Form No.15CA for payments other than the payments referred in clause (i) after obtaining—
(a)   a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288; or
(b)   a certificate from the Assessing Officer under section 197; or
(c)   an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195.

(2) The information in Form No. 15CA shall be furnished by the person electronically to the website designated by the Income-tax Department and thereafter signed printout of the said form shall be submitted to the authorised dealer, prior to remitting the payment.

(3) An income-tax authority may require the authorised dealer to furnish the signed printout referred to in sub-rule (2) for the purposes of any proceedings under the Act.

(4) The Director General of Income-tax (Systems) shall specify the procedures, formats and standards for ensuring secure capture, transmission of data and shall also be responsible for the day-to-day administration in relation to furnishing the information in the manner specified.

Explanation 1.— For the purposes of this rule, “authorised dealer” means a person authorised as an authorised dealer under sub-section (1) of section 10 of the Foreign Exchange Management Act, 1999 (42 of 1999).

Explanation 2.—For the removal of doubts, it is hereby clarified that for payments of the nature specified in column (3) of the specified list below, no information is required to be furnished under sub-rule (1).

SPECIFIED LIST

  Sl.No. Purpose code as per RBI Nature of payment
  (1) (2) (3)
  1 S0001 Indian investment abroad -in equity capital (shares)
  2 S0002 Indian investment abroad -in debt securities
  3 S0003 Indian investment abroad -in branches and wholly owned subsidiaries
  4 S0004 Indian investment abroad -in subsidiaries and associates
  5 S0005 Indian investment abroad -in real estate
  6 S0011 Loans extended to Non-Residents
  7 S0202 Payment- for operating expenses of Indian shipping companies operating abroad.
  8 S0208 Operating expenses of Indian Airlines companies operating abroad
  9 S0212 Booking of passages abroad -Airlines companies
  10 S0301 Remittance towards business travel.
  11 S0302 Travel under basic travel quota (BTQ)
  12 S0303 Travel for pilgrimage
  13 S0304 Travel for medical treatment
  14 S0305 Travel for education (including fees, hostel expenses etc.)
  15 S0401 Postal services
  16 S0501 Construction of projects abroad by Indian companies including import of goods at project site
  17 S0602 Freight insurance – relating to import and export of goods
  18 S1011 Payments for maintenance of offices abroad
  19 S1201 Maintenance of Indian embassies abroad
  20 S1 202 Remittances by foreign embassies in India
  21 S1301 Remittance by non-residents towards family maintenance and-savings
  22 S1302 Remittance towards personal gifts and donations
  23 S1303 Remittance towards donations to religious and charitable institutions abroad
  24 S1304 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.
  25 S1305 Contributions or donations by the Government to international institutions
  26 S1306 Remittance towards payment or refund of taxes.
  27 S1501 Refunds or rebates or reduction in invoice value on account of exports
  28 S1503 Payments by residents for international bidding”.

3. In the said rules, in Appendix II, for Form No.15CA and Form No. 15CB, the following Forms shall be substituted, namely:—

Form 15CA – form15ca-download link

Form 15CB  –  form15cb- download link

If you have any queries related to this article or any other personal finance query ( Investment, Taxation etc), please comment below

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