How to File Form 15CA Online?
How to file form 15CA online?
Foreign remittances are on a rise and it requires proper accountability from the remitter to notify the bank and the Income tax department, about the reason for remittance and its changeability to tax. Those sending gifts to their NRI friends, relatives abroad, making service payments, or the like in a foreign currency are required to suffice a reason to the banks about such remittances. As per the Indian Income Tax law, it is the responsibility of the taxpayer to suffice the reason for remittance and for the banking institution to notify the department about such remittances also. For this purpose, a separate declaration in Form 15CA was made mandatory for the remitter.
Form 15CA is a measure for the tax department to track remittances made abroad and to ensure that proper tax deduction is made by the remitter for depositing it to the tax department. The restriction for taxation of remittances has been provided under Section 195 of the Income Tax Act. Following all measures for taxation on foreign remittances, here you will get to know why and how to file form 15CA online against single or multiple remittances made abroad.
What is Form 15CA?
As per Section 195 of the Income Tax Act, concerning any payment other than Salary or interest provided under Section 194 LB, 194 LC, and 194 LD – made by any individual to any NRI (Non-resident Indian ) or any foreign company, deduction of TDS on a prescribed rate is provided. The said deduction is to be reported to the Income tax department by filing form 15CA.
It is a medium for the government and the tax department to collect more information about the taxability of the remittance, the remitter, and the recipient. For those making payments through the bank, the section implies a duty of remitter banks to receive a copy of Form 15CA from the remitter. The Section 195 and Rule 37BB of the Income Tax Act, state for issue /exception of Form15CA in case of special category payments made abroad.
Who should file Form 15CA?
Making a remittance abroad, as per Rule 37BB the following entities are required to file Form 15CA online:
- Resident Individual
- Non-Resident Indian making taxable payments to other NRI.
- HUFs (Hindu Undivided Family)
- Partnership Firms
- Foreign Companies in India
- Other NRIs entities/individuals in India
- Any AOP (NGO, Government Agency, etc,)
What Information to file in Form 15CA?
For making payments to an NRI or any other foreign entity or remittances other than those provided under Rule 37BB, the following disclosures are to be made while filing Form 15CA online:
Part A – Declaration for remittance or aggregate of remittances if chargeable to tax if exceeding the limit of Rs 5 lakh in a financial year.
Part B – Declaration for remittance or aggregate of remittances exceeding Rs 5 lakh against which an order / Certificate under Section 195(2)/195(3) / 197 has been received/required from/by the Assessing Officer.
Part C – Declaration for remittance or aggregate of remittances against which declaration from a Chartered Accountant is required using Form 15CB.
Part D – If the remittance is not chargeable to tax.
In all respective heads, details of the remitter, the recipient, the amount of remittance, and other declarations as requested are to be submitted online.
How to File Form 15CA Online?
To file form 15CA online, the remitter taxpayer has to access the e-filing utility of the Income-tax portal online.
- Login to the e-filling Portal
- Go to E-file > Income Tax Forms > File Tax Forms
- Select Form 15CA
- Select Part and fill in all the required details.
- Click on Preview Page
- Select Proceed to Verify
Once all details of the remitter, remittance, and declarations are submitted – it is to be E-Verified manually by the taxpayer through Aadhaar OTP, EVC (Electronic Verification Code), or DSC (Digital Signature Certificate).
Difference between Form 15CA and 15CB
- Certification from Chartered Accountant is mandatory in Form 15CB but it is not mandatory in Form CA
- Form 15CA is mandatory to file in every business foreign remittance but in Form 15CB it depends on the nature of the payment. If the remittance exceeds Rs. 5 Lacs then it’s mandatory to file Form 15CB.
- TDS can self-certify in Form 15CA but only CA can certify TDS in Form 15CB
What is the due date for filing form 15CA?
As per Rule 37BB of the Income Tax Act, 1961 the remitter is required to submit Form 15CA electronically by the format and verification to the tax department before making any such foreign payment. In case any details are to be changed or the payment is to be canceled, one can withdraw the older Form 15CA within 7 days of submission and can reissue in a revised Form 15CA.
What are the penalties for Form 15CA?
For failure in furnishing the required Form 15CA before the payment date, then the remitter shall be liable to face penal provisions provided under Section 271I of the Income Tax Act, 1961. The amount of Penalty shall be Rs. 1 Lacs.
If you are stuck in any of the compliances related to foreign payments or tax adjustments, you can consult our tax expert at firstname.lastname@example.org.