Ushma & Associates
15ca/15cb Assistance for Making Payments to Non-Residents or Repatriation of Own Funds:
When a non resident sell a property or get inherited money or get any funds through any other transaction in India, he cannot transfer this money to his overseas bank account directly. His funds shall deposit in NRO account first. Then bank may ask him to submit 15ca and 15cb certificates depending on his case. After receiving these certificates, bank can transfer funds from NRO account to person’s NRE account or overseas bank account.
Similarly, A person resident or non resident responsible for making a payment to a non-resident shall file a 15ca form and obtain a 15cb certificate from a Charted Accountant.
15cb is a certificate issued by a Chartered Accountant who will use his income tax login id and Digital signature to issue the certificate. These certificates has have fixed format and contain all details like Remitter name and pan, remittee name and pan, Country to which remittance is made, Amount payable, details of NRO bank, TDS rate, under which head it is covered, applicability of DTAA, Chartered accountant details etc.
Through 15ca form person responsible for making payment to non-resident provide information to the Income Tax department. 15ca contains information like remitter’s and remittee’s pan no., contact details, remittance amount, TDS details, Lower/NIL TDS certificate detail (if any), 15cb acknowledgement number etc. It has four parts, and only that part is required to be filled, which is applicable depending on the case. It can be filed online by login to the income tax account of remitter.
These forms are filed online, and copies of these forms are submitted to the bank from where transferring money out of India takes place.
If NRI is planning to sell a property in India, then income tax provisions applicable to him is different from the provisions applicable to residents. For example, withholding tax rates applicable to the NRI seller is much higher than the resident seller. Also, the buyer shall obtain TAN and shall file different TDS challan. An NRI can apply for lower/Nil TDS deduction certificate in case he is not willing to pay such a huge TDS during the sale process.