The Revised Rules in regard to Form 15CA and 15CB are effective from April, 1st 2016.

CBDT have amended Rule 37 BB of Income Tax Rules and made notable changes which are as under:-

• An Individual is not required to furnish information in Form 15CA and 15CB for remittance which require no RBI approval.

 

• The List of payments of specified nature as mentioned in Rule 37BB which do not require submission of Form 15CA and 15CB has been expanded from 28 to 33 including payments for imports.

• A CA certificate in Form 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 Lakhs.

• The details and information in 15CA and 15CB is required to be furnished only in case of Taxable Foreign Remittance.

With effect from April 1st, 2016, the provision applicable to Income-Tax Rule 37BB read with Section 195 is amended i.e. issuance of Form 15CB & CA.

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 i.e. Part A, Part B, Part C and Part D, wherein; here below are the key points covered therein.

1. Form 15CA- Part A– If the amount of remittance or aggregate of such remittance made during the financial year doesn’t exceed INR 5 Lakhs. Previously the threshold was above 50,000 per payment or the aggregate remittances exceeded INR 2, 50,000 during the financial year.

2. Form 15CA- Par B– If the amount or aggregate of such remittance made during financial year does not exceed INR 5,00,000 an order/certificate of exemption has been obtained from the income-tax Officer – (Whether it is NIL or Lower Rate Certificate).

3. Form 15CA-Part C– If the amount of remittance or aggregate of such remittance made during the financial year exceed during INR 5, 00,000 a certificate in Form 15CB is obtained by an accountant.

4. Where the remittance is not chargeable to tax under the provisions of the Income-tax Act, 1961 (other than payment referred to in rule 37BB (3)) by person referred to in Rule 37BB (2).

You can also refer to the article Detailed study of 15CA and 15CB for better understanding of Form 15CA and 15CB.

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