In view of the difficulties reported by taxpayers in electronic filing of Income Tax forms 15CA/15CB, the Central Board of Direct Taxes stated that taxpayers can submit the forms in manual format to the authorised dealers till June 30, 2021.
According to the Central Board of Direct Taxes, “Authorised dealers are advised to accept such forms till June 30th, 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.”
As per the Income-tax Act, 1961, there is a requirement to submit 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 authorised dealer for any foreign remittance.
15CA is for any person who wants to make any payment or remit any money to non resident, the bank will require to check whether the tax was paid or not. In case taxes are not paid, it will be checked with a certified by the Chartered accountant or the Assessing Officer. However, not all foreign remittances need to follow this system, there are 33 types of foreign remittance that are exempted from submission of Form 15CA or Form 15CB.
Form 15CA
Form 15CA is a declaration of remitter. This form is to gather information in respect of payments which are chargeable to tax in the hands of the recipient non-resident.
Form 15CB
It is required to be signed by a Chartered Accountant and is a certification regarding rates and the right kind of tax paid by a remitter.
Remittance that does not require filling of forms 15CA/15CB:
- Indian investment abroad - in debt securities
- Indian investment abroad - in branches and wholly owned subsidiaries
- Indian investment abroad - in subsidiaries and associates
- Indian investment abroad - in real estate
- Loans extended to Non-Residents
- Advance payment against imports
- Payment towards imports - settlement of invoice
- Imports by diplomatic missions
- Intermediary trade
- Imports below Rs.5,00,000 - (For use by ECD offices)
- Payment for operating expenses of Indian shipping companies operating abroad
- Operating expenses of Indian Airlines companies operating abroad
- Booking of passages abroad - Airlines companies
- Remittance towards business travel
- Travel under basic travel quota (BTQ)
- Travel for pilgrimage
- Travel for medical treatment
- Travel for education (including fees, hostel expenses etc.)
- Postal services
- Construction of projects abroad by Indian companies including import of goods at project site
- Freight insurance - relating to import and export of goods
- Payments for maintenance of offices abroad
- Maintenance of Indian embassies abroad
- Remittances by foreign embassies in India
- Remittance by non-residents towards family maintenance and savings
- Remittance towards personal gifts and donations
- Remittance towards donations to religious and charitable institutions abroad
- Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
- Contributions or donations by the Government to international institutions
- Remittance towards payment or refund of taxes
- Refunds or rebates or reduction in invoice value on account of exports
- Payments by residents for international bidding.
