Finally, the Central Board of Direct Taxes (CBDT) issues Notification no. 93/2015 dated December 16, 2015 that is both reasonable and practical for anyone making payment to a non-resident or an NRI remitting money outside India or transferring from NRO to NRE account. The important changes under the revised Rules are:
- Form 15CA and 15CB will NOT be required for
- Any payments included in the specified list. The nature of payment in specified list has been expanded from 28 to 33 including payments for imports, family maintenance and savings.
- Any payment by an individual for remittance which do not requiring RBI approval under its Liberalized Remittance Scheme (LRS)
- Form 15CA has been revised and now has 4 parts (Part A, Part B, Part C and Part D) to be used under specific circumstances.
- For any payment chargeable to tax, if the aggregate of such payments during the year does not exceed Rs. 500,000, Form 15CA Part A is to be submitted.
- For any payment exceeding Rs. 500,000, if a certificate or an order from the Assessing Officer is obtained, Form 15CA Part B is to be submitted.
- For any payment that is (i) chargeable to tax, and (ii) amount of payment or sum of payments exceeds Rs. 5,00,000 during the year, and (iii) order or certificate from Assessing Officer is not obtained; A CA certificate in Form No. 15CB and Form 15CA part C will be required. The CA certificate in Form 15CB is to be submitted electronically.
- For any payment that is not chargeable to tax and is not included in #1 above (i.e. Form 15CB and Form 15 are not required), Form 15CA Part D is to be submitted.
I have prepared a flowchart for better understanding.
In summary, Form 15CB and Form 15CA are now required only for any taxable payment exceeding Rs. 500,000 for which Assessment order or certificate is not obtained.
The amended Rules are applicable from April 1, 2016.