CA Certificate for repatriation of income

Section 195 of the Income Tax Act, 1961 (‘the Act’) deals with deduction of tax at source while making payments to a non-resident. As per the said section, every person liable for making a payment to non-residents shall deduct tax (at applicable rates) from the payments made to non-residents, if such sum is chargeable to tax under the provisions of the Act. If so, the appropriate taxes must be withheld and a CA certificate in Form 15CB together with a self-declaration in Form 15CA must be submitted online by the person making remittance.

15CB is the Tax Determination Certificate where the CA examines the remittance with regard to chargeability provisions under the Act along with the provisions of Double Tax Avoidance Agreements.

The rationale behind a Form 15CB/CA is to ensure that taxes are duly deducted and deposited before payments are made overseas. Additionally it serves as a mechanism for the authorities to collect information and monitor the movement of foreign exchange from the Country.

In form 15CB, A CA certifies details of the payment, TDS rate and TDS deduction as per Section 195 of the Income Tax Act, if any DTAA is applicable, and other details of nature and purpose of the remittance.