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In the present times of globalisation, there are the least restrictions imposed on businesses due to which they are spreading around the world with huge international transactions on a daily basis. Taxability and Tax deduction is complicated proceeding when NRIs are involved. Eligible rate of tax, deductions allowed, etc. on business transactions made with Non-residents Indians are governed under the Income Tax Act. Here in this article we are going to discuss about Form 15CA & 15 CB in detail;
Rule 37BB governs the manner to furnish the information or file the declaration by the assessee who makes any payment to Non-Resident India (NRIs) or foreign companies as per the following:
The assessee shall give the declaration of such payment in Part A of Form 15CA.
Assessee is required to furnish the details of such payment in Part D of Form 15CA.
An individual is said to be Resident of India ifhe fulfills the following condition:
OR
The assessee will be considered as Non-Resident Indian (NRIs) if he doesn’t satisfy any of the above conditions.
As per Section 2(32) of the Income Tax Act, 1961, any company which is not a domestic company(a domestic company is registered in India and is liable for taxation as per the provisions of Indian Income Tax Acts)
Form 15CA is filed for filing the declaration by a remitter who has the remit or paid in the course of international transactions. This form is used as a medium for collecting the information concerning the payments for which tax is payable by the recipient (non-resident) of such income. With the help of this form, Income Tax Departments keep an eye on every foreign transaction and foreign remittances.
In case the payment is not liable for taxation or doesn’t relate to NRIs, such form is exempted, provided that remitter shall submit the declaration in the form of note specifying the nature of the payment and the exempted condition thereof.
Following are the details of the information required to be disclosed in Form 15CA:
Following is the step by step process to file this form online:
Following are the four different parts of form 15CA to be filed depending upon the taxability and amount of remittance:
Following international transactions are exempted from the purview of this section:
Also, there is no need to furnish the information in Form 15CA and 15CB for the payments that require no approval from RBI under its Liberalized Remittance Schemes.
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