India taxes individuals based on a system of income slabs. Different tax rates are assigned to different ranges of income.&nbsp;

Understanding tax slabs is crucial for several reasons.

As a person earns more, the tax liability also increases, creating a fair and progressive tax system in the country. To achieve this, the government regularly updates and announces changes to tax slabs in the Union Budget.

The income tax slabs differ between the old and new tax regimes. Let's explore the specific slab rates applicable to Individuals for FY 2022-23 (AY 2023-24) and FY 2023-24 (AY 2024-25).

Income Tax Slab Rates For FY 2023-24 (AY 2024-25)&nbsp;

Rates of the old tax regime slabs are categorized into three groups:

The new tax regime applies uniform tax rates to all individuals, eliminating the age-based distinctions in the old system. The new tax regime slabs 2023-24 are outlined below.

Applicability of Surcharge for FY 2023-24 (AY 2024-25)

The income tax <a href="https://incometaxindia.gov.in/charts%20%20tables/tax%20rates.htm">surcharge</a> is an extra fee imposed on top of the <a href="https://www.skydo.com/blog/how-to-file-taxes-under-44ada?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">regular income tax</a>. An additional tax is applied to individuals with higher income earnings in a specific financial year. Let’s look at the applicable surcharge rate under the Old and New tax regime.

However, 25% or 37% surcharge rates will not apply to income under the following sections.

Consequently, the highest surcharge rate on the tax payable for such incomes will be 15%.

Starting from the Assessment Year 2023-24, the maximum surcharge rate on tax payable for dividend income or capital gain specified in Section 112 will be capped at 15%.&nbsp;

A 4% Health and Education cess will be applied to all cases’ total income tax liability and surcharges.

Comparison of tax rates under the New tax regime and the Old tax regime for FY 2022-23 (AY 2023-24)

How do you calculate the income tax from the income tax slabs?

Let’s understand the calculation with an example.

Sanjana, aged 35, has a total taxable income of Rs. 8,50,000. She has opted for the old tax regime. Her income includes income from salary, interest and rental income. Deductions under section 80 have been reduced. Now, Sanjana wants to know her <a href="https://www.skydo.com/blog/gst-requirements-international-service-sales?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">tax liability</a> for FY 2022-23 (AY 2023-24).

*Sanjana, an individual taxpayer under the age of 60, enjoys an income exemption limit of up to Rs 2,50,000. Other taxpayers, i.e., senior and super senior citizens, have higher income tax exemption thresholds of Rs 3,00,000 and Rs 5,00,000, respectively.

Please be aware that the tax rates in the New Tax Regime are uniform for all categories of individuals, including regular individuals, senior citizens, and super senior citizens.&nbsp;

Individuals with a net taxable income of up to Rs 5 lakh qualify for a tax rebate under section 87A, resulting in zero tax liability in both the New and Old tax regimes. It's important to note that in Budget 2023, the rebate under the new regime has been extended, making income up to Rs 7 lakh tax-free from the FY 2023-24 onward.

Let's delve into effective strategies to maximize your investments while minimizing the associated tax burdens.

ELSS mutual funds provide a dual benefit of potential capital appreciation and tax savings under Section 80C of the Income Tax Act. Investing in ELSS reduces taxable income and offers a path for long-term wealth growth.

2. Explore tax-efficient investment avenues

Health insurance qualifies for tax benefits under Section 80D. You can claim tax benefits on premiums paid - up to Rs 20,000 for senior citizens and Rs 15,000 for others. For example, if you pay Rs 15,000 for your policy and Rs 20,000 for your senior citizen parent, you can claim a total tax benefit of Rs 35,000.&nbsp;

Maturity value is tax-free for sums received under critical illness insurance policies.

This strategy entails selling loss-making assets to realize the capital loss and using it to offset the gains earned by profit-making assets.

For instance, if you have a loss of Rs. 20,000 in Stock A and a gain of Rs. 30,000 from Stock B, you can sell Stock A during a market downturn to offset the gains. This way, you can reduce your taxable income. The saved amount can be reinvested for portfolio growth.

Ensure that tax loss harvesting aligns with your overall financial goals and plan by considering a discussion with a financial professional or tax advisor.

<a href="https://www.skydo.com/blog/how-can-the-right-chartered-accountant-help-your-tech-export-business?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">Consult financial professionals or tax advisors</a> for effective tax planning and strategic advice. Their expertise can provide tailored insights aligned with your financial goals and ensure a well-informed approach to optimize your tax situation.

If you need help deciding what is right for you, we will connect you with our panel of Indian and US-based CA / CPAs. Feel free to reach out to us.

Q1. How is a taxpayer's income categorized?

Ans: A taxpayer's income falls into five categories outlined in Section 14 of the Income Tax Act. These include Income from salary, Profits from a business or profession, Income from House Property, Capital Gains, and Income from Other Sources.

Q2. Is it possible to avail of 80C deductions while choosing the new tax slabs 2023-24?

Ans: No, under the new tax regime, several deductions and exemptions, including those under section 80C, are not permitted. Opting for the new tax regime means foregoing the ability to claim deductions under section 80C.

Q3. What do "Previous Year" and "Assessment Year" mean?

Ans: We have two important terms in income tax provisions: (i) Previous Year and (ii) Assessment Year. Previous Year is when you earn income, typically from April 1st to March 31st. The year right after the Previous Year, from April 1st to March 31st, is called the 'Assessment Year.'

For example, the Previous Year is from April 1, 2023, to March 31, 2024 (FY 2023-24). The corresponding Assessment Year is from April 1, 2024, to March 31, 2025 (AY 2024-25).

Q4. What is the tax exemption limit for calculating income tax rebate under section 87A?

Ans: For FY 2023-24 (AY 2024-25), the rebate limit has been increased to Rs. 7,00,000 under the new tax regime. This means a resident individual with taxable income up to Rs 7,00,000 will receive Rs 25,000 or the amount of tax payable (whichever is lower) as tax relief. However, the old tax regime's threshold limit will remain the same, i.e., Rs 12,500 if taxable income is up to Rs 5,00,000.

Q5. How much is the standard deduction for FY 2023-24?

Ans: You can claim a standard deduction of ₹50,000 to the income taxable under the head ‘Salaries.’ The standard deduction is a tax benefit that can be claimed irrespective of the amount spent on Transport or Medical Allowance. It applies to individuals earning a salary or pension income.

Prepare for the upcoming year's tax season by understanding the tax slabs for 2023-24 and optimizing your tax savings. 

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Rohit Khuranna

SEPA is a payment format that allows the transfer of Euro-denominated funds within the SEPA region, with 36 member countries.

SEPA first began operations in January 2008 and is regulated by the European Payment Council (EPC). At first, SEPA only processed credit transfers, but it was updated in November 2009 to include direct debits and debit cards.&nbsp;

As an Indian freelancer or business owner, collaborating with clients in the EU and understanding the intricacies of the SEPA transfers, with its key features and benefits, is important. This blog will help you unravel the significance of SEPA transactions and explore how this initiative is reshaping the landscape of European electronic payments

SEPA global transactions within the member EU countries allow the following four payment processing schemes.

The processing and settlement times for SEPA transactions vary depending on the nature of the transaction. Here are the processing times for SEPA payments based on the four types of payment processing schemes:&nbsp;

For businesses registered in the US that are processing SEPA Direct Debit payments from customers for bank accounts in the SEPA area, the settlement time for the SEPA international payments is 3-6 days.&nbsp;

Although the requirements for SEPA vary for each bank, here are some common details needed:

The SEPA network is a domestic payment system for the member EU countries, similar to payment methods ACH in the US, BACs in the UK and NEFT in India, requiring two bank accounts to complete the transaction.&nbsp;

Every account in the SEPA area is assigned an International Bank Account Number (IBAN) at inception. The IBAN is the European equivalent of an Indian bank account number. When making a SEPA transfer, the parties have to quote the IBAN identification codes.&nbsp;

SEPA’s standardized payments system allows the direct debit of a Euro-denominated bank account within the SEPA region.&nbsp;

Almost all SEPA transactions are free as it is the nationalized payment method for EU member countries. If you are a small business owner or a freelancer registered in India but have clients in the member EU countries, SEPA can be a convenient and cost-effective way for your clients to pay you.&nbsp;

However, as India is not a member country of the SEPA, it becomes challenging for a small business owner or freelancer in India to accept payment made through the SEPA. The only way for an Indian entity to accept SEPA payments is through a licensed third-party payment platform. Platforms like <a href="https://www.skydo.com/">Skydo</a> provide a one-stop solution to efficiently accept Euro payments from international clients through a virtual SEPA account. Using <a href="https://www.skydo.com/">Skydo</a>, you don’t have to open a traditional SEPA bank account in the SEPA Region and can virtually receive Euro SEPA payments. Once received, you can transfer funds from your virtual SEPA account to your Indian bank account after converting the funds into INR.&nbsp;

In its essence, <a href="https://www.skydo.com/">Skydo</a> presents an effective and accessible solution for domestic and international entities to embrace the benefits of SEPA payments and ensure a seamless payment process, as it is easier for clients to use the SEPA network.&nbsp;

The SEPA network and its associated transactions represent a significant leap forward in European electronic payments. Establishing the Single Euro Payments Area has harmonised the diverse payment landscapes across participating countries and laid the foundation for a more efficient, secure, and seamless cross-border payment ecosystem.

Adopting common formats, such as IBANs, streamlines the identification and processing of transactions, reducing errors and enhancing overall transaction efficiency. Furthermore, options such as SEPA Instant Credit Transfer provide the facility for instant fund transfer in case of urgency with the same level of security.&nbsp;

For Indian entities, platforms like <a href="https://www.skydo.com/">Skydo</a> are helping streamline global transactions through SEPA. You can open your virtual SEPA account by visiting the <a href="https://www.skydo.com/">Skydo</a> website.&nbsp;

Q1. Do I need a European bank account to receive SEPA payments?&nbsp;

Ans: Yes, if you want to receive the funds directly into your bank account, you would need a European bank account. However, you can use third-party payment platforms such as Skydo to open a SEPA account virtually, receive funds in the virtual account, and transfer the funds to your Indian bank account.&nbsp;

Ans: No, SEPA and SWIFT are different. SEPA standardises euro payments within Europe, while SWIFT enables international payments beyond SEPA, using BIC codes instead of IBANs. While they can work together, they serve distinct purposes.

Ans: Yes, IBAN is mandatory for all SEPA payments denominated in euros. It ensures accurate routing within the Single Euro Payments Area.

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The Directorate General of Foreign Trade (DGFT) is committed to facilitating exports and imports, focusing on efficient, transparent, and accountable delivery systems. Hence, the DGFT has implemented an upgraded Electronic Bank Realisation Certificate (eBRC) system to enhance trade facilitation for exporters.

The enhanced eBRC system is based on the streamlined processing of electronic Inward Remittance Messages (IRMs) transmitted directly by banks to DGFT. Under this system, exporters are empowered to self-certify their eBRCs based on the IRMs received. This move intends to reduce transaction time and costs for exporters, simplify the reconciliation process for banks, and promote a more business-friendly environment.

Pilot launch of the improved e-BRC system

The DGFT had proposed a soft launch of the enhanced eBRC system from November 15, 2023. For this, banks will set individual cut-off dates based on their readiness after completing User Acceptance Testing (UAT). Both the upgraded and legacy eBRC systems will run simultaneously until all the banks transition to the improved system.

Banks have been asked to transition through mandatory API integration for prompt data exchange by January 31, 2024. The DGFT website will host a list of banks with their respective IRM cut-off dates.

Streamlined Workflow of the Enhanced e-BRC System

Previously, the Bank Realization Certificate (BRC) was processed manually. Exporters were required to submit a physical copy of the BRC to the relevant Regional Authority of the Directorate General of Foreign Trade (DGFT). Subsequently, export transaction details from the BRC were manually entered, resulting in a time-consuming and complex procedure for claiming export incentives.

DGFT introduced the eBRC Module to promote paperless trade—a unified platform facilitating the direct electronic transmission of <a href="https://www.skydo.com/blog/forex-and-its-impact?https://www.skydo.com/blog/forex-and-its-impact">Foreign Exchange</a> Realization Information from Banks to DGFT’s server. Incorporating digital certificates adds an extra layer of security to this process.

With the implementation of the eBRC system, exporters are no longer compelled to visit their banks for a Bank Realization Certificate. This has significantly streamlined the process of claiming export incentives and benefits from DGFT and other relevant export agencies, making it more accessible for exporters.

The revamped eBRC system follows a structured workflow:

The enhanced Electronic Bank Realisation Certificate (e-BRC) system offers several benefits for exporters and stakeholders, including:

The enhanced e-BRC system offers a more modern, efficient, and user-centric approach to the certification process, contributing to a smoother export documentation experience for businesses.

<a href="https://economictimes.indiatimes.com/news/economy/foreign-trade/pilot-launch-of-upgraded-electronic-bank-realisation-certificate-system-for-exporters-from-nov-15/articleshow/105185227.cms">According to Sanjay Budhia, the Chairman of the CII National Committee on EXIM and Managing Director of Patton Group</a>, "This will help exporters and banks optimize their resources and cut costs. Over the years, DGFT has almost completely automated its processes, and now, with this new step, exporters can fully focus on enhancing exports and achieve our targeted goal of USD 2 trillion of exports by 2030."

To read more about e-BRC, check out <a href="https://www.skydo.com/blog/what-is-e-BRC?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">this</a> blog.

Ans: You can follow the below steps to check the status of your e-BRC:

Q2. How to download eBRC from the DGFT website?

Ans: You can follow the below steps to download your e-BRC from the DGFT website:

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The W-8BEN form is filled out by non-US residents or business entities earning an income from the US. The major benefit of filling out a W-8BEN tax form is that you avail tax benefits and exemptions in the USA despite being a non-resident. In short, this is a tax-saving form and can help you reduce your taxes significantly, especially if your country has entered a tax treaty with the US.&nbsp;

The complex nature of tax norms in the US makes compliance difficult. In this article, we will go through the basics of the W-8BEN tax form, why it is important, how it can benefit you, and the consequences of not filling it.

The W-8BEN form is issued by the Internal Revenue Service (IRS). The agency <a href="https://www.youtube.com/watch?v=rFZVwEUHRqg">mandates</a> that all non-US resident individuals and entities earning an income in the United States fill out this form to avail of tax exemptions. Without the W-8BEN tax form, an entity must pay tax according to the USA’s standard 30% tax rate.

The W-8BEN tax form establishes the foreign status of individuals, whereas businesses, corporations, partnerships, and other entities must use the W-8BENE form to avail their tax exemptions.&nbsp;

According to the IRS, individuals or businesses earning income in the following ways are also required to fill the W-8BEN form:

This means non-US citizens or businesses that engage in investments, work with other businesses or partnerships in the US, own property in the US, etc., are generally the type of entities that fill this form.&nbsp;

To know whether you fall under this category, you must ask yourself two simple questions:

If your answer to both is yes, chances are you will need to fill out the W-8BEN tax form.&nbsp;

Failure to fill out the form can result in the US government withholding 30% of your income or any amount credited to you.&nbsp;

Some entities/individuals who may be required to submit the W-8BEN form are:

Students who receive any income from compensatory fellowships or scholarships are exempt. These individuals must fill out a different set of forms according to the <a href="https://www.sec.gov/Archives/edgar/data/1084544/000119312506201838/dex99a1vii.htm#:~:text=No%20Form%20W%2D8BEN%20is,that%20apply%20to%20that%20income.">guidelines</a> laid down by the IRS.

The W-8BEN tax form is a straightforward form that most people fill out themselves. Here is what the form looks like:

Section 1: Identification of Beneficial Owner

This section includes basic information about you, such as your name, country of citizenship, country of residence, date of birth, permanent residence, and mailing address.&nbsp;

This section has a field to enter your US Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). If you are not a US citizen, you will not be eligible for an SSN; in that case, you must apply for an ITIN. It takes about 4-6 weeks to get the ITIN after filling out the W-7 form with the IRS.

The next field is the foreign tax identifying number (FTIN). This is an important field, and if your country does not provide a foreign tax ID, you can also enter your passport number.&nbsp;

While you can check a box if the FTIN is not applicable, it is not generally recommended to do so since it can result in discrepancies cropping up in your form. The reference number field can be left blank.

This depends on your country of residence since the withholding amount depends on the country’s treatment with the US. You can try looking up your country’s treaty on the IRS website and entering the withholding amount accordingly.&nbsp;

The treaty is generally in the form of a PDF and contains withholding rates for different types of income. This section also requires you to enter the specific article and paragraph from the treaty that mentions the withholding amount for the type of income you are earning.&nbsp;

The final section includes a certification that ensures you understand the conditions of the form, followed by your date of birth, signature, and name.

It is best to get help from an agent, but if you are used to filling out this form, you should get it right. Another mistake commonly made is leaving the ITIN field blank.&nbsp;

Do not submit your form to the IRS directly. In most cases, the person who pays you the money or income you earn will ask you to submit the W-8BEN tax form. Download the form (more on that below) and submit it to them. Another option is going through a withholding agent who will receive your form after you fill it out and submit it.&nbsp;&nbsp;

You must submit the form whenever it is asked of you, even if you do not intend to file for exemption from taxes for that particular time period.

Go to the IRS’ official website and <a href="https://www.irs.gov/pub/irs-pdf/fw8ben.pdf">download the latest revision of the W-8BEN form</a>. Do not rely on third-party sites claiming to have the latest versions. The IRS website shall give you the right version.

If you submit an expired or outdated form, you may have to go through the process again and resubmit it.

What is the Difference Between a W-8BEN and a W-8BEN-E Form?

There are two forms: W-8 BEN and W-8 BEN-E form. The W-8BEN form is for individuals, and the W-8 BEN-E is meant to be filled by entities other than individuals, such as businesses and partnerships.

While the former is a short, one-page form, the latter extends to 8 pages. The W-8BEN-E requires additional details about your entity type, the Foreign Account Tax Compliance Act (FATCA) status, exempt retirement plans, and additional certifications.&nbsp;

There are five types of W-8 forms, including W-8 BEN and W-8BEN-E. Here are some basic requirements they fulfill:

Best practices to follow when filling a W-8BEN form

The best way to ensure you comply with all the rules and regulations is to go through an agent. Agents can also be useful to ensure that your forms are submitted and handled without any complications or errors.&nbsp;

However, it is absolutely your decision if you want to go solo and do it yourself. You can also be updated with all the changes by subscribing to financial newsletters or following tax consultants on LinkedIn who regularly simplify the field and its intricacies for their viewers.&nbsp;

To sum up, doing business globally or out of your country as a foreign entity is tough enough, and figuring out your tax liabilities and responsibilities can seem daunting. But if you do it right, it can save you a fortune, which is why going through this grueling process is worth it.&nbsp;

Whether it is the W-8BEN or W-8BEN-E, it is important to recognize what type of entity you are and what other types of forms you need to fill out to get this one right. Kindly refer to the <a href="https://www.sec.gov/Archives/edgar/data/1065088/000119312509098031/dex99a1viii.htm">instructions on the SEC website</a> for more guidance.

Q1. Do I need to submit a new W-8BEN form for each payment or transaction?

Ans: An individual W-8BEN form is required for each withholding agent, not each transaction or payment. If you have multiple sources of income, you should file a different form with each of them.&nbsp;

Q2. Can a tax professional help me fill out the W-8BEN form?

Ans: Yes, there are several professional agencies and freelance agents that you can contact to help you fill out your form and submit it. Most people who have been filling out the W-8BEN form for years end up doing it alone, but it is recommended you go through a professional initially.

Ans: A W-8BEN form is valid from the date the form is signed to the last day of the next three calendar years. However, any changes in the conditions mentioned in the form that can deem it incorrect make it invalid.

Q4. Can I submit a W-8BEN form electronically?

Ans: Yes, you can submit the form via email after filling in the details and scanning it.

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Sending money abroad can feel overwhelming, especially when understanding the compliance requirements. One key challenge Indian residents face is knowing when and how to file Form 15CA and Form 15CB, essential documents for making international payments to non-residents.

For example, if you run a software company in India and must pay USD 10,000 to a US-based UI/UX consultant, your bank will ask for Forms 15CA and 15CB before processing the payment.&nbsp;

Does that sound relatable? Don't worry. We're here to simplify it for you.

This blog will explain exactly what these forms are, why they matter, and how to file them easily. Let's get started!

Form 15CA is a declaration form required under Indian tax law, specifically <a href="https://www.incometax.gov.in/iec/foportal/help/all-topics/statutory-forms/popular-form/form15ca-faq#:~:text=As%20per%20Section%20195%2C%20every,be%20furnished%20in%20Form%2015CA.">Section 195 of the Income Tax Act</a>. It must be submitted by any person making payments to non-residents or foreign companies when such payments are deemed taxable in India. This form ensures that the correct amount of tax is deducted at source (TDS) before the payment (remittance) is made.

Form 15CA helps the Income Tax Department monitor foreign remittance details and their tax implications. It also assists non-residents in claiming credit for taxes deducted in India.&nbsp;

TDS rate declaration: The form requires disclosing the TDS rate applicable to the payment. This rate may be based on either <a href="https://www.incometax.gov.in/iec/foportal/help/all-topics/statutory-forms/popular-form/form15ca-faq#:~:text=As%20per%20Section%20195%2C%20every,be%20furnished%20in%20Form%2015CA.">Section 195 of the Income Tax Act</a> or any lower rate specified in a relevant DTAA.

Deductions: The payer must ensure that TDS is deducted at the source before paying, reflecting compliance with Indian tax obligations.

Form 15CB is a certificate from a Chartered Accountant (CA) required before filing Part C of Form 15CA. This certificate ensures compliance with the Double Taxation Avoidance Agreement and Income Tax Act for accurate tax deductions on payments. When making taxable payments above ₹5 lakhs to non-residents, you must first obtain this CA certificate and then use it to file Part C of Form 15CA.

Quick note: A DTAA is an agreement between two countries that helps determine the tax rates and obligations when making cross-border payments. For example, when paying a US-based consultant, the India-US DTAA helps decide which tax rate applies to your payment and how much TDS needs to be deducted before sending the money abroad.

TDS rate certification: In Form 15CB, the CA certifies the TDS rate applied to the payment. The rate could be determined as follows:

Deductions overview: The CA also confirms that all necessary deductions have been made according to legal requirements before remittance.

Let's break down Form no. 15CA into simple, digestible parts. Think of it as a document with four versions (A, B, C, and D), each for specific situations.

Part A: For taxable payments up to ₹5 lakhs

Use this version when you've got special permission from the tax officer (Assessing Officer) under <a href="https://www.incometax.gov.in/iec/foportal/help/all-topics/statutory-forms/popular-form/form15ca-faq">Section 195(2), 195(3), or 197</a> to:

Think of it as a pre-approved tax discount. When filing, you'll need to show the official permission letter.

Details required: Payer (remitter) and recipient (remittee) information and the AO's order details.

This is for bigger payments. You'll need to use this when:

Important: You'll need your CA to provide Form 15CB first before filing this part. This extra step helps verify your tax calculations for larger amounts.

Use this when your payment isn't taxable in India. For example:

Even though these payments might be exempt, you must declare them through Part D of Form 15CA.

💡Quick Tip: When you're paying non-resident service providers (like international consultants, developers, or designers):

Remember: These forms are for sending money abroad, not for receiving international payments.

Form 15CA is not required in the following situations:&nbsp;

Form 15CB is not required in the following situations:&nbsp;

Existing AO certificate: If a certificate has been obtained from the Assessing Officer under Sections 195(2), 195(3), or Section 197, indicating that TDS does not apply or can be reduced, then Form 15CB is not required.&nbsp;

As per&nbsp;<a href="https://incometaxindia.gov.in/Rules/Income-Tax%20Rules/103120000000007406.htm">Rule 37BB</a>, the following payments do not require Form 15 CA CB:

What Details are Required to File Form 15 CA CB?

The details required to file form 15CA are as follows:&nbsp;

The details required to file form 15CB are as follows:&nbsp;

Note: These supporting documents help your CA verify the applicable tax rates and prepare Form 15CB, but they're not directly submitted with the form.

How to file Form 15 CA and CB Online?&nbsp;

The steps to file Form 15CA online are as follows:&nbsp;

Step 1: Access the e-filing portal. Visit the <a href="https://www.incometax.gov.in/iec/foportal/">Income Tax forms page in the e-filing portal</a> and log in using your credentials (PAN, user ID, and password).

Step 2: Navigate to form selection. Go to e-File &gt; Income Tax Forms &gt; File Income Tax Forms, and select Form 15CA from the list.

Step 3: Choose the appropriate part of Form 15CA. Once at the instructions page, select the relevant part based on your situation: Part A for such remittances not exceeding ₹5 lakh, Part B if you have obtained a certificate from the Assessing Officer under Sections 195(2), 195(3), or 197, Part C for remittances exceeding 5 lakh rupees that are chargeable to tax (requires prior submission of Form 15CB), or Part D for remittances not chargeable to tax.

Step 4: Fill in the required details. In the selected part of Form 15CA, enter all necessary information as prompted, including details of both sender and receiver, nature of payment, and remittance amount.

Step 5: Verification and submission. Complete any required verification sections and submit Form 15CA online. A confirmation pop-up will appear upon successful submission, and you should receive an acknowledgement at your registered email address.

Step 6: Accessing submitted forms. After submission, you can view your submitted Form 15CA under the "Worklist" tab by selecting "For Your Information."

The steps to file Form 15CB online are as follows:&nbsp;

Step1: Preparation by chartered accountant (CA)&nbsp;

The CA must be registered on the Income Tax e-filing portal and have a valid Digital Signature Certificate (DSC). You must provide your CA with all necessary documentation to pay a non-resident.

The CA prepares Form 15CB, certifying that the payment complies with Indian tax laws and any applicable Double Taxation Avoidance Agreements (DTAAs).

Step 3: Log into the e-filing portal&nbsp;

The CA must log in using their credentials to visit the Income Tax e-filing portal.

Step 4: Access Form 15CB. After logging in, navigate to e-File &gt; Income Tax Forms &gt; File Income Tax Forms, and select Form 15CB from the list.

Step 5: Submission process Choose "Online" as the submission mode, enter the PAN of both the taxpayer and the CA, upload the prepared XML file generated from the downloaded utility, upload the DSC file generated using the DSC Management Utility, and click on the Submit button. You can also use the search box for any assistance.&nbsp;

Confirmation: Upon successful submission, a confirmation message and acknowledgment number (or transaction ID) will appear. The CA can view the uploaded Form 15CB under their dashboard. Keep the acknowledgement number for your future reference.&nbsp;

Receive International Payments Seamlessly with Skydo&nbsp;

Making international payments from India requires proper tax compliance through 15CA and 15CB documentation. Getting these right ensures smooth cross-border transactions and helps avoid regulatory issues.&nbsp;

Brands like Skydo simplify this process by providing instant FIRA documentation and GST-compliant invoicing for hassle-free global business payments.

Learn<a href="https://www.skydo.com/"> more about Skydo!</a>&nbsp;

large_Form 15 CA CB

medium_Form 15 CA CB

small_Form 15 CA CB

thumbnail_Form 15 CA CB

Form 15 CA CB

In business transactions involving cross-border payments, selecting the appropriate purpose code is critical to comply with RBI and FEMA regulations. The S1099 purpose code applies to miscellaneous business services that do not fall under any specific predefined categories. This guide explains the role of the S1099 code, when to use it, and how it ensures smooth inward remittance processing under RBI guidelines.

The S1099 purpose code is designated for miscellaneous business services that do not fit into any other purpose code categories. It is a catch-all code for services that involve other business-related activities, ensuring these payments are properly classified under RBI guidelines.