15CA, 15CB Form NRIs, Residents – Remittance of Money – Chartered Accountant, Tax Consultant

Form 15CA, 15CB – Chartered Accountant (CA) Services for 15CA and 15CB – NRI Remittance of Money From India To Abroad, Payment To Non-Residents & TDS U/s 195, Tax Advisor In Delhi, Mumbai India

BackGROUND: 

Under globalization, it is a common scenario that there are many financial transactions where payment/remittance of money happens from India to Abroad. Payment/Remittance of Money happens mainly in following two categories where Indian Tax System comes into picture:

  • One is when NRIs (including PIOs and OCIs) remit their money from NRO Bank Account to NRE Account or Foreign Account.
  • Second category is when a payment is made from India to a Non-Resident (i.e. NRIs, Foreign Companies, OCIs, PIOs, Foreign Citizens Abroad etc), where payment contain any income element.

In above both cases, there is a requirement of Form 15CA and Form 15CB. Both are Income Tax Forms.

In the first category (i.e. Remittance by NRI), the bank requires the Form 15CA & 15CB from NRI/PIO/OCI though as per the provisions of Indian Laws it is not a requirement. Hence, in the first category, Form 15CA & 15CB is purely an internal requirement of banker. Hence, NRI (or PIO/OCI) approaches a chartered accountant for Form 15CA & 15CB. Further, in the second category (i.e. Payment to Non-Residents), where payment (containing an income component) is made to Non-Resident, there is a requirement of Sec 195 of the Income Tax Act to withhold & deposition of TDS and to submit Form 15CA & 15CB.

REMITTANCE OF MONEY FROM NRO ACCOUNT TO NRE/FOREIGN ACCOUNT:

Remittance of money from India (Indian NRO Bank Account) to Abroad is a common & frequent requirement of NRIs & PIOs. NRIs/PIOs/OCIs generally hold money in their Indian NRO Bank Accounts.

  • Generally, NRI/PIO/OCI accumulate their money in their NRO account in India. They accumulate this money out of the funds they remit from their foreign account. Also, in various cases, NRIs earn this money as an income on their investments in India e.g. rental income or interest income.
  • In many cases, NRI/PIO/OCI receives money in their Indian NRO Bank account from the sale of their property or investment in India.
  • Since, NRI/PIO/OCI need money abroad, hence, they wish to remit the funds from their NRO account in India to Foreign account abroad.
  • Also, in many cases NRI/PIO/OCI plan to remit funds from NRO account to NRE account where they can earn similar return without the exposure of Indian Taxation. Also, remittance from NRE account to Foreign account can be done anytime very conveniently.
  • Now, when NRI/PIO wish to remit his/her funds from NRO account to NRE account or Foreign Account, the banker in India demand certain paper formalities. Of these requisite documents, two main documents are Form 15CA and Form 15CB.
PAYMENT TO NON-RESIDENTS AND TDS U/S 195 OF INCOME TAX ACT:

As Per Section 195 of the Income Tax Act, 1961, TDS is applicable on any payment (containing income element), which is being made to Non-Residents (i.e. NRIs, Foreign Companies, OCIs, PIOs, Foreign Citizens Abroad etc). Hence, in other words, if someone is making payment to Non-Resident then he has withhold tax on the payment he is making to a Non-Resident (i.e. NRIs, Foreign Companies, OCIs, PIOs, Foreign Citizens Abroad etc). Other provisions of section 195 are:

  • Tax withholding (TDS) rate is as per rates in force. Hence, the TDS rate is maximum rate as per the provisions of act applicable on such nature of income e.g. if payment is for purchase of long term immovable property then TDS rate is @20% plus surcharge & cess.
  • TDS rate is subject matter of any relief under the Double Tax Avoidance Agreement (DTAA) or special rate provided in the Income Tax Act e.g Fee for Technical Services or Interest Income. In many DTAAs the rate on these items are 10% or 15%.
  • Form 15CB (a CA Certificate) and Form 15CA is submitted (online) for these payments.
  • TDS rate can be lower rate or nil rate. For nil rate or lower rate TDS, the payer or payee can file an application (u/s 195 or u/s 197) with the Jurisdictional Assessing Officer (Juris AO). Once Juris AO allows TDS Exemption Certificate or Lower Rate TDS Certificate the payer makes payment after giving effect of TDS as per the certificate and makes the payment to Non-Resident (i.e. NRIs, Foreign Companies, OCIs, PIOs, Foreign Citizens Abroad etc).
Basic Information Wrt Form 15CA and Form 15CB
  • Form 15CB is a Chartered Accountant (CA) certificate, where the information about nature of income and its taxation is mentioned.
  • Form 15CA is a declaration by the remitter, which is based on form 15CB.
  • The CA verifies the details of nature of source of remittance and ensure that the taxes are duly paid in India, if any applicable.
  • After the verification process, the CA prepares the Form 15CB (which is an online process) with all requisite details. In this Form, CA submits various details as per the details given in next para.
  • On the basis of 15CB itself, a Chartered Accountant prepares the Form 15CA as well and submits the same on the Income Tax Department portal online.
  • When the CA submits the two forms i.e. 15CB and 15CA, an acknowledgement is generated, which is provided to the Banker for processing of remittance.
Form 15CA and Form 15CB – Requisite For Form Preparation:
  • Remitter Details – Remitter Name, Address etc.
  • Beneficiary Details – Beneficiary Name, Address, Country, Currency etc
  • Bank Details – Remitting bank details, branch details, BSR Code etc.
  • Amount – Proposed amount of remittance in Indian Currency as well Foreign Currency
  • Date of remittance – Proposed date of remittance of money
  • Nature of remittance
  • TDS details if applicable
  • DTAA details if DTAA benefit is applied
  • RBI code details for remittance purpose etc
  • Reasons of non-deduction of tax – Eg remittance by NRIs from their NRO account to NRE/Foreign Bank.

General FAQs – Form 15CA 15CB – NRIs, Foreign Companies, OCIs, Residents, Indian Companies, PIOs etc

Q: Why Form 15CA and 15CB is required for NRIs for remitting Funds from NRO Account to their Foreign Bank Account?

Ans:

Form 15CA and 15CB is a requirement of Income Tax Laws. As per Income Tax Act, Section 195, when there is a payment to a Non-Resident of some taxable income then Form 15CA and 15CB are to be submitted with the Income Tax Authorities. In case of an NRI (or PIO), who remits fund from their NRO Bank Account in India to Foreign Bank Account (or even NRE Bank Account), the banks require the Form 15CA and Form 15CB. Though, as per the Income Tax Law, in such transactions (remittance of money by NRIs from Indian Bank Account to Foreign Bank Account), the provisions are not straightway applicable, however, the bank require the compliance of Form to keep a full proof check that no remittance is made from India without compliance of taxes.

Q: What are the Chartered Accountant (CA) Requirements in relation to completion of Form 15CA and 15CB for NRI transactions? What documents and records are required by the CA in this regard?

In relation to NRI Transactions, Chartered Accountant verifies that whether due taxes have been paid on the money which is to be remitted from India to Abroad. In this regard, Chartered Accountant generally requires the NRIs for their past few years records which include NRI Income Tax Returns, 26AS, NRI Bank Statements of Indian Bank Accounts, Other Relevant Details as per the facts of the case.

Q: What are Form 15CA and Form 15CB? How the Form 15CA and 15CB are submitted?

Form 15CB is a Chartered Accountant Certificate in a prescribed format of Income Tax Deptt. Form 15CA is replica of Form 15CB wrt information to be submitted. Both the Forms are submitted online on the Income Tax Department Portal (www.incometaxindiaefiling.gov.in). To submit the Forms on the Income Tax Portal, a registration id is created on the Income Tax Portal.

 

Where Can S Lohia & Associates be helpful:

  • S Lohia & Associates is a Chartered Accountant firm and it can be helpful in complete process of Form 15CB and 15CA.
  • I am an NRI and I am planning to remit my funds, lying in Indian Bank Account, to abroad. How can I do this? Can you help me?
  • I need a consultant or chartered accountant for fulfilling the requirement of preparation and submission of Form 15CB and 15CA?
  • What is the process of Form 15CA and Form 15CB for NRIs/OCIs?
  • I am a foreign citizen/NRI, looking for a chartered accountant in Delhi/India for 15CA & 15CB services in relation to remittance of my funds from Indian Bank Account (NRO Bank Account) to Foreign Bank Account/NRE Bank account?
  • S Lohia & Associates is a CA Firm doing NRI 15CA & 15CB services to all kind of people i.e. NRIs, OCIs, PIOs, Foreign Citizens, Indian Companies etc.
  • I am a foreign citizen, looking forward for a CA in Delhi/India in relation to NRI 15CA Services, NRI 15CB Services, NRI Remitting of Money From India To Abroad Services, NRI online 15CA & 15CB Services.

 

Contacts

S LOHIA & ASSOCIATES Chartered Accountants 
Address : 1301, Naurang House (13th Floor),
21 Kasturba Gandhi Marg,
Connaught Place, New Delhi 110 001.
Tel No. : +91-11-43505250, 66095250
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