| Question And Answer | |
|---|---|
| Subject: | Is form 15CA and CB required for payment of Dividend credited in rupees in the NRE account in India to NRI |
| Category: | Income-Tax |
| Querist: | Disha@spcm.in |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | 15CB, Dividend, Form 15CA, payment to non-resident, TDS |
| Date: | October 7, 2021 |
Public limited co making payment of Dividend to NRI share holder. This payment is credited to his NRE account in Indian Rupees. Whether in this situation Form 15 CA and CB is required. Does this amounts to remittance to NRI, even though payment is credited in bank account maintained in India.
Form 15CA is titled “Information to be furnished for payments to a non-resident not being a company, or to a foreign company”. Form 15CB is applicable on payments exceeding Rs. 5 lakhs. Therefore, there is an obligation on the remitter on remitting to a Non-Resident.
Further, dividend is not covered under the exceptions under Rule 37BB of the Income-tax Rules, 1962 (Rules).
Therefore, the payment of Dividends to Non-residents will attract compliance obligations under Rule 37BB of the Rules i.e., Form 15CA and Form 15CB.