Section 195 was amended vide Finance Act, 2008 to allow CBDT to prescribe rules for electronic filing of the undertaking. The format of the undertaking (Form 15CA) which is to be filed electronically and the format of the certificate of the Accountant (Form 15CB) have been notified vide Rule 37BB of the Income-tax Rules, 1962.

Accordingly, circular no. 4 has been issued to clarify the procedure as:

(i) The person making the payment (remitter) will obtain a certificate from an accountant (other than employee) in Form 15CB.

(ii) The remitter will then access the website to electronically upload the remittance details to the Department in Form 15CA (undertaking). The information to be furnished in Form 15CA is to be filled using the information contained in Form 15CB (certificate).

* An 'accountant" means a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (38 of 1949), and includes, in relation to any State, any person who by virtue of the provisions of sub-section (2) of section 226 of the Companies Act, 1956 (1 of 1956), is entitled to be appointed to act as an auditor of companies registered in that State.

(iii) The remitter will then take a print out of this filled up Form 15CA (which will bear an acknowledgement number generated by the system) and sign it. Form 15CA (undertaking) can be signed by the person authorised to sign the return of income of the remitter or a person so authorised by him in writing.

(iv) The duly signed Form 15CA (undertaking) and Form 15CB (certificate), will be submitted in duplicate to the Reserve Bank of India / authorized dealer. The Reserve Bank of India / authorized dealer will in turn forward a copy the certificate and undertaking to the Assessing Officer concerned.

(v) A remitter who has obtained a certificate from the Assessing Officer regard the rate at or amount on which the tax is to be deducted is not required to obtain a certificate from the Accountant in Form 15CB. However, he is required to furnish information in Form 15CA (undertaking) and submit it along with a copy of the certificate from the Assessing Officer as per the procedure mentioned from Sl.No.(i) to (iv) above.

(vi) A flow chart regarding filing of Form 15CA and Form 15CB is enclosed at Annexure-A.

The Directorate General of Income-tax (Systems) (www.incometaxindia.gov.in) shall specify the procedures, formats and standards for running of the scheme as well as instructions for filling up Forms 15CA and 15CB. These forms shall be available for upload and printout at www.tin-nsdl.com

 

Annexure - A

Flow chart of filing undertaking form u/s 195 of I T Act 1961

(Flows Downward)

 

 

 

 

 

 

 

 

 

Electronic filing for remittance undertakings mandated, requiring Form 15CB-based Form 15CA submission and RBI/authorized dealer forwarding. The amendment authorises electronic filing of undertakings for remittances, prescribing that remitters obtain an accountant's certificate in Form 15CB, use it to electronically populate Form 15CA, print and sign the acknowledged Form 15CA, and submit both Form 15CA and Form 15CB in duplicate to the Reserve Bank of India or an authorized dealer, who will forward copies to the Assessing Officer; if a certificate from the Assessing Officer is obtained, Form 15CB is not required but Form 15CA must still be furnished with the AO certificate.