CBDT vide notification 67/2003 revised the rules and procedures AGAIN for payment to NRI. And this time, for good. The updated rule will also be effective from October 1, 2013. I hope they do not change the rules again.
1. As per the revised rule, Form 15CA/CB is applicable only if a person responsible for paying to a non-resident, any interest or salary or any other sum chargeable to tax under the provisions of the Act.
It means, NO CA Certificate in Form 15CB and NO furnishing of Form 15CA to the Income Tax department for any payment or money transfer out of India that is NOT Taxable.
As a result, Form 15CA/CB may not be required for the transfer from NRO to NRE or for outward remittance from NRO funds. However, I am not sure who will take the responsibility to determine if the transfer was of funds taxable in India and whether taxes have been paid.
THIS IS HUGE for NRIs…… Let’s hope that it is not changed again…
2. For the nature of the payments contained in the “Specified List” (nature changed from 39 to 28), No information to be submitted, i.e. No CA certificate in Form 15CB and No Form 15CA.
3. For payment that is taxable but does not exceed Rs. 50,000 or aggregate of payment does not exceed Rs. 250,000 in a financial year, Only Form 15CA Part A to be furnished.
4. For any other payment, updated CA Certificate in Form 15CB to be obtained and revised Part B of the Form 15CA to be furnished to the Income Tax department.
5. Please note that the Form 15CB required detailed information (Income Tax provisions, DTAA Article, TDS rate, amount, basis, etc.) as mentioned in my previous blog. For Form 15CA, the part C of the Form 15CA in the earlier notification has been made Part B of the Form 15CA after making related changes.
If this notification is not revised before it becomes effective on October 1, 2013, this is a VERY Welcome step by CBDT and will lift a lot of tension or burden from the NRIs. Ofcourse, Chartered Accountants would lose some revenue…
(edited on April 25, 2014)….
It appears that banks are still requiring 15CB/15CA evenif they may not be required. If you are having ANY problem with NRO to NRE transfer, Contact Us and we will help you get your money in the NRE account. Thanks.
The rules and procedures have been revised again. For the latest procedures and requirement as on April 1, 2016, please visit my recent blog 15CB, 15CA Procedures Updated: Understand new procedures applicable from April 1, 2016.