Direct Tax amendments-15CB, 15CA procedures updated

The Central Board of Direct Taxes (CBDT) has issued a Notification no. 93/2015, dated December 16, 2015, revising the rules for any one making a payment to an NRI or remitting money outside India or transferring from NRO to NRE account. These changes makes money transfer practical and reasonable. 

The important amendments include-

·   Form 15CA and 15CB will not be required for any payments included in the specific list, and the nature of payment in the specified list has been increased from 28 to 22, which includes payments for imports, savings and family maintenance.  

·      These forms are not required form any payment by an individual for remittance that do not required RBI approval under its Liberalized Remittance scheme.

·         The revised form 15CA has four parts now, which has to be submitted if it meets the specified circumstances-

1.      Part A: For any payment chargeable tax if the aggregate of such payments during the year does not exceed Rs. 500,000

2.      Part B: This is to be submitted if the payment exceeds Rs. 500,000, or in an order from the Assessing Officer is obtained.

3.      Part C: Part C of Form 15CA is to be submitted along with Form 15CB for payments that is (i) chargeable to tax (ii) amount payment of sum of payment exceeds Rs. 500,000 during the years, and (iii) order or certificate form Assessing Officer is not obtained.

4.      Part D: Part d of Form 15CA is to be submitted for payments that is not chargeable to tax, and where Form 15 CB and Form 15 are not required.

At Mahaveer and Singhvi Associates as one of the leading CA Firms in Mysore, we provide viable auditing services from best and take care of your paper works. For more details visit our website: http://www.ca-msa.com/

CIB- What is it?

The Income Tax Department (ITD) has strengthened its vigilance in the past few years and has made it a mission to identify stop- filers and non- filers and hence widen the tax base effectively. Once they have successfully identified these defaulters, they send a notice to such persons. The notice will usually read as such-

“The Income Tax Department has received information on financial transactions / activities relating to you. A list of some of the information for Financial Year is provided below. As per records, you do not appear to have filed Income Tax Return for Assessment Years. “ 

If you have received such a notice, then you will have to login to your e-filing portal and issue an appropriate response as stated in the compliance module. You would then have to print out this acknowledgement of response and send a copy to the jurisdiction ITO (Income Tax Officer) within a set number of days.

This additional crackdown- information gathering and other associated operations- are done via CBI )Central Information Branch). They will look beyond the Annual Information Report, as per Form 26AS, furnished by the ward. Since 2011, they have been working tirelessly to ensure a transparent exchange fo financial information between the individuals and the ITD by gathering information about investments, expenses, payment of taxes etc. For more information about our services and CA’s in Mysore, do visit our website at www.ca-msa.com