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Submission of Form 15CA and Form 15CB
The income tax department has revised the rules relating to preparation & submission of Form 15CA and Form 15CB (see old rules here).Revised rules are effective 1st April 2016.The significant changes are as follows –

  • Form 15CA and 15CB will be NOT be required to be furnished by an individual for remittance which do not requiring RBI approval
  • List of payments of specified nature mentioned in Rule 37 BB which do not require submission of Forms 15CA and 15CB has been expanded from 28 to 33 including payments for imports.
  • Form No. 15CB will only be required for payments made to non-residents which are taxable and the payment exceeds Rs. 5 lakh.

 

Here are the full details

A person responsible for making a payment to a non-resident or to a foreign company has to provide the following details –

When payment made is Rs 5 lakhs or less

For such payments information is required in Part A of Form 15CA

When payment made exceeds Rs 5 lakhs

  • A certificate from Assessing Officer under Section 197
  • An order from Assessing Officer under section 195(2) or 195(3)
  • Part B of Form 15CA has to be provided
  • Certificate in Form 15CB from an accountant
  • Part C of Form 15CA

When the payment made is not chargeable to tax under income tax act

  • Part D of Form 15CA
  • In the following cases no submission of information is required
    • the remittance is made by an individual and it does not require prior approval of Reserve Bank of India [as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000]
    • or the remittance is of the nature specified in the list below:

 

Rule 37BB
Sl. No. Nature of Payment
1 Indian investment abroad -in equity capital (shares)
2 Indian investment abroad -in debt securities
3 Indian investment abroad-in branches and wholly ownedsubsidiaries
4 Indian investment abroad -in subsidiaries and associates
5 Indian investment abroad -in real estate
6 Loans extended to Non-Residents
7 Advance payment against imports
8 Payment towards imports-settlement of invoice
9 Imports by diplomatic missions
10 Intermediary trade
11 Imports below Rs.5,00,000-(For use by ECD offices)
12 Payment- for operating expenses of Indian shipping companies operating abroad.
13 Operating expenses of Indian Airlines companies operating abroad
14 Booking of passages abroad -Airlines companies
15 Remittance towards business travel.
16 Travel under basic travel quota (BTQ)
17 Travel for pilgrimage
18 Travel for medical treatment
19 Travel for education (including fees, hostel expenses etc.)
20 Postal Services
21 Construction of projects abroad by Indian companies including import of goods at project site
22 Freight insurance – relating to import and export of goods
23 Payments for maintenance of offices abroad
24 Maintenance of Indian embassies abroad
25 Remittances by foreign embassies in India
26 Remittance by non-residents towards family maintenance and-savings
27 Remittance towards personal gifts and donations
28 Remittance towards donations to religious and charitable institutions abroad
29 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.
30 Contributions or donations by the Government to international institutions
31 Remittance towards payment or refund of taxes.
32 Refunds or rebates or reduction in invoice value on account of exports
33 Payments by residents for international bidding.

 

Steps to calculate income from house property

Gross Annual Value of the property

The gross annual value of a self-occupied house is zero. It is the rent collected for a house on rent.

Less: Property Tax

Property tax, when paid, is allowed as a deduction.

Net Annual Value

Net Annual Value = Gross Annual Value – Property Tax

Less: 30% standard deduction on NAV

Two deductions are allowed under Section 24 of the Income Tax Act – one, a standard deduction of 30% and two, interest on home loan.

Less: Interest on home loan

No other expenses such as painting and repairs can be claimed as tax relief beyond the 30% cap under this section.

Income from house property

The resulting value is your income from house property. This is taxed at the slab rate applicable to you.

Loss from house property

Since the gross annual value of a self-occupied house is zero, claiming the deduction on home loan interest will result in a loss from house property. This loss can be adjusted against income from other heads.

 

Other important aspects related to furnishing of information in Form 15CAClick to download new Form 15CA, Form 15CB, Form 15CC

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