Every international transfer made for business purposes must file Income Tax Forms with the Income Tax Portal, including the amount of the remittance, currency, recipient country, and nature of the transaction for which payment is required. In this article, we will understand the difference between 15ca and 15cb.
Furthermore, if international remittance exceeds a certain limit, you need to get it signed by the qualified Chartered Accountant who authorizes the amount of tax to be paid. The person or business making the foreign remittance has to do so using Form 15ca and 15b. But there is also a significant difference between 15ca and 15cb that you must know.
What is Income Tax Form 15ca?
Income Tax Form 15ca is a type of form that is mandatory to be filed for every foreign remittance to a non-resident.
It works on the basis of TDS(Tax Deducted at Source) and is mandatory as it is not possible and feasible to collect tax from non-resident at a later stage.
Furthermore, it allows the Income Tax Department to monitor and track international transactions. The Income Tax Department also uses Income Form 15CA to decide the tax liability on that particular transaction.
Important Note: No financial institution or bank will process a business’s international transfer request unless Form 15CA is submitted. So, You must have filed Form 15CA before seeking a foreign payment from the Bank.
What is Form 15cb?
Form 15cb is a form that requires a Chartered Accountant’s signature. This is a document that certifies your taxation rates and the type of tax you paid. When completing Form 15CA, some details from Form 15CB are necessary.
A CA verifies the payment information, TDS rate, and deductions as per Section 195 of the Income Tax Act if any DTAA is required, and other details relating to the nature and reason of the remittances in form 15CB.
Prior to filling out Part C of Form 15CA, you must first upload Form 15CB. However, Form 15CB is only necessary for special circumstances, such as when a foreign remittance exceeds INR 5 lakhs.
Know the difference between 15ca and 15cb
The difference is written below:
| Income Tax Form 15ca | Income Tax Form 15cb |
| Certification from a Chartered Accountant is not mandatory. | It is mandatory that Chartered Accountant signs and certifies it. |
| It is mandatory to file Form 15ca in every business foreign remittance. | It depends on the nature of the payment. It is also mandatory to file form 15cb in case of remittance exceeding Rs. five lakhs. |
| As a business owner, you can self-certify the Tax Deducted at Source Rate. | As per the income tax rules, only a CA can certify TDS Rate and Deduction. |
Documents requirement for 15ca and 15cb
Basic Details of Remitter
- Name
- Address Proof
- PAN Card
- Principal Place of Business
- Digital Signature Certificate
- Bank Details of the Remitter
- Status of the Remitter whether an individual or a company
Basic Details of Remittee
- Name
- Status of the Remittee whether an individual or a business entity
- Address and Country of the Remittee
- Principal Place of business
Basic Details of Remittance
- Country where remittance is being made
- Currency
- The amount and the Date on which Remittance is being made
There are several other details that you might need to furnish form 15ca and 15cb. You can contact our business advisors to know all about it in detail.
Moreover, If you want any other guidance relating to ITR Filling, Form 15CA and 15CB. Please feel free to talk to our business advisors at 8881-069-069.
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