{"id":29324,"date":"2025-05-19T00:41:39","date_gmt":"2025-05-18T19:11:39","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=29324"},"modified":"2025-08-20T18:00:32","modified_gmt":"2025-08-20T12:30:32","slug":"form-15ca-cb-if-transfer-of-shares-no-capital-gains","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/form-15ca-cb-if-transfer-of-shares-no-capital-gains\/","title":{"rendered":"Form 15CA\/CB : if Transfer of Shares &#038; No capital gains"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d2aaf07c3f0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d2aaf07c3f0\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/form-15ca-cb-if-transfer-of-shares-no-capital-gains\/#Whether_Form_15CACB_required_when_Transfer_of_Shares_No_capital_gains\" title=\"Whether Form 15CA\/CB required when Transfer of Shares &amp; No capital gains\">Whether Form 15CA\/CB required when Transfer of Shares &amp; No capital gains<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/form-15ca-cb-if-transfer-of-shares-no-capital-gains\/#Exemption_from_Filing_of_Form_15CACB\" title=\"Exemption from Filing of Form 15CA\/CB\">Exemption from Filing of Form 15CA\/CB<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/form-15ca-cb-if-transfer-of-shares-no-capital-gains\/#Key_Highlights_of_the_Exemption_List\" title=\"Key Highlights of the Exemption List:\">Key Highlights of the Exemption List:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/form-15ca-cb-if-transfer-of-shares-no-capital-gains\/#Section_271-I_%E2%80%93_Penalty_for_Non-Filing_or_Inaccurate_Filing_of_Form_15CACB\" title=\"Section 271-I \u2013 Penalty for Non-Filing or Inaccurate Filing of Form 15CA\/CB\">Section 271-I \u2013 Penalty for Non-Filing or Inaccurate Filing of Form 15CA\/CB<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/form-15ca-cb-if-transfer-of-shares-no-capital-gains\/#Section_271J_%E2%80%93_Penalty_on_Professionals_for_Incorrect_Certificates\" title=\"Section 271J \u2013 Penalty on Professionals for Incorrect Certificates\">Section 271J \u2013 Penalty on Professionals for Incorrect Certificates<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/form-15ca-cb-if-transfer-of-shares-no-capital-gains\/#Form_15CACB_Compliance_Tips\" title=\"Form 15CA\/CB\u00a0Compliance Tips\">Form 15CA\/CB\u00a0Compliance Tips<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/form-15ca-cb-if-transfer-of-shares-no-capital-gains\/#Whether_Form_15CACB_required_when_Transfer_of_Shares_No_capital_gains-2\" title=\"Whether Form 15CA\/CB required when Transfer of Shares &amp; No capital gains\">Whether Form 15CA\/CB required when Transfer of Shares &amp; No capital gains<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/form-15ca-cb-if-transfer-of-shares-no-capital-gains\/#Transfer_of_Shares_Case_Summary\" title=\"Transfer of Shares Case Summary\">Transfer of Shares Case Summary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/form-15ca-cb-if-transfer-of-shares-no-capital-gains\/#Legal_Position_under_Income_Tax_on_Whether_Form_15CACB_Required_When_Transfer_of_Shares_No_Capital_Gains\" title=\"Legal Position under Income Tax on Whether Form 15CA\/CB Required When Transfer of Shares &amp; No Capital Gains: \">Legal Position under Income Tax on Whether Form 15CA\/CB Required When Transfer of Shares &amp; No Capital Gains: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/form-15ca-cb-if-transfer-of-shares-no-capital-gains\/#Applicability_in_This_Case\" title=\"Applicability in This Case\">Applicability in This Case<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/form-15ca-cb-if-transfer-of-shares-no-capital-gains\/#Our_recommended_action_in_this_case\" title=\"Our recommended action in this case : \">Our recommended action in this case : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/form-15ca-cb-if-transfer-of-shares-no-capital-gains\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-13359\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/15CB-means-final-1024x457-1.jpg\" alt=\"www.carajput.com: Introduction of Form15CA &amp; 15CB\" width=\"1024\" height=\"457\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/15CB-means-final-1024x457-1.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/15CB-means-final-1024x457-1-300x134.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/15CB-means-final-1024x457-1-768x343.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/15CB-means-final-1024x457-1-800x357.jpg 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Whether_Form_15CACB_required_when_Transfer_of_Shares_No_capital_gains\"><\/span><span style=\"color: #000080;\"><strong>Whether Form 15CA\/CB required when Transfer of Shares &amp; No capital gains<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Exemption_from_Filing_of_Form_15CACB\"><\/span><span style=\"color: #000080;\">Exemption from Filing of Form 15CA\/CB<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>31 categories of foreign remittances that are exempt from the requirement of filing Form 15CA &amp; Form 15CB under Rule 37BB of the Income-tax Rules, 1962.<\/p>\n<p style=\"padding-left: 40px;\">Sl. No. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Nature of Payment<\/p>\n<p style=\"padding-left: 40px;\">1 Indian investment abroad \u2014 in equity capital (shares) 2 Indian investment abroad \u2014 in debt securities<\/p>\n<p style=\"padding-left: 40px;\">3 Indian investment abroad \u2014 in branches and wholly owned subsidiaries<\/p>\n<p style=\"padding-left: 40px;\">4 Indian investment abroad \u2014 in subsidiaries and associates<\/p>\n<p style=\"padding-left: 40px;\">5 Remittance towards fully repatriable investments in India by NRIs\/PIOs<\/p>\n<p style=\"padding-left: 40px;\">6 Remittance towards non-repatriable investments in India by NRIs\/PIOs<\/p>\n<p style=\"padding-left: 40px;\">7 Remittance towards portfolio investment by NRIs\/PIOs<\/p>\n<p style=\"padding-left: 40px;\">8 Remittance for loans extended to NRIs<\/p>\n<p style=\"padding-left: 40px;\">9 Donations to charitable\/religious institutions abroad<\/p>\n<p style=\"padding-left: 40px;\">10 Remittance by individuals under the Liberalized Remittance Scheme (LRS) up to \u20b97,00,000 per financial year (as amended)<\/p>\n<p style=\"padding-left: 40px;\">11 Travel for education (including fees, hostel, maintenance, etc.)<\/p>\n<p style=\"padding-left: 40px;\">12 Travel for medical treatment<\/p>\n<p style=\"padding-left: 40px;\">13 Travel for attending conferences, training, etc.<\/p>\n<p style=\"padding-left: 40px;\">14 Travel for religious purposes<\/p>\n<p style=\"padding-left: 40px;\">15 Travel for business or tourism 31 Exemption from Filing of Form 15CA\/CB SI. No. Nature of Payment<\/p>\n<p style=\"padding-left: 40px;\">16 Payments for imports by Indian companies<\/p>\n<p style=\"padding-left: 40px;\">17 Operating expenses of Indian shipping companies abroad<\/p>\n<p style=\"padding-left: 40px;\">18 Remittance of interest on loans and overdrafts by NRIs<\/p>\n<p style=\"padding-left: 40px;\">19 Payments made under operating lease agreements (other than towards royalty, FTS, interest, etc.)<\/p>\n<p style=\"padding-left: 40px;\">20 Payments for subscriptions to magazines, periodicals, journals, etc.<\/p>\n<p style=\"padding-left: 40px;\">21 Payments towards internet services, bandwidth, email services, etc.<\/p>\n<p style=\"padding-left: 40px;\">22 Remittance towards payment of fees to testing agencies or accreditation boards<\/p>\n<p style=\"padding-left: 40px;\">23 Remittance by embassies\/consulates\/high commissions<\/p>\n<p style=\"padding-left: 40px;\">24 Remittance towards refund of taxes<\/p>\n<p style=\"padding-left: 40px;\">25 Remittance towards payment to international bodies like IMF, World Bank, etc.<\/p>\n<p style=\"padding-left: 40px;\">26 Remittance for shipping freight (not involving royalty\/FTS)<\/p>\n<p style=\"padding-left: 40px;\">27 Payments for software purchased off-the-shelf (not involving copyright\/license)<\/p>\n<p style=\"padding-left: 40px;\">28 Remittance for use of satellite transponders where royalty is not involved<\/p>\n<p style=\"padding-left: 40px;\">29 Remittance for news subscription services<\/p>\n<p style=\"padding-left: 40px;\">30 Remittance under FEMA compounding orders<\/p>\n<p style=\"padding-left: 40px;\">31 Remittance towards wages\/salaries to foreign employees (not taxable in India)<\/p>\n<p>The above exemptions are issued by the CBDT and aim to ease compliance for specified low-risk or recurring transactions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_Highlights_of_the_Exemption_List\"><\/span><span style=\"color: #000080;\">Key Highlights of the Exemption List:<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Investments and Remittances Abroad (Sl. No. 1 to 4) : Indian investments abroad in equity, debt securities, branches, subsidiaries, or associates.<\/li>\n<li>NRI\/PIO Transactions (Sl. No. 5 to 8) : Remittances by NRIs\/PIOs, whether repatriable or non-repatriable. Portfolio investments and loans to NRIs.<\/li>\n<li>LRS and Personal Remittances (Sl. No. 9 to 15) : LRS up to \u20b97,00,000 per financial year (above this, 15CA\/CB is required). Personal travel, education, medical treatment, donations, business, and religious trips.<\/li>\n<li>Corporate and Commercial Payments (Sl. No. 16 to 22) : Import payments, shipping operations, interest remittances by NRIs. Operating lease payments, online services (magazines, internet, testing agencies).<\/li>\n<li>Institutional and Governmental Remittances (Sl. No. 23 to 25) : Payments by embassies, tax refunds, and to international bodies like IMF\/World Bank.<\/li>\n<li>Other Specific Exemptions (Sl. No. 26 to 31): Freight, off-the-shelf software (no royalty), satellite usage (no royalty), news services. FEMA compounding order payments. Salaries to foreign employees (not taxable in India).<\/li>\n<li>Form 15CA\/CB is still required if the remittance involves taxable income under the Income Tax Act or exceeds the LRS threshold of \u20b97 lakh per FY (in individual cases).<\/li>\n<li>Chartered Accountant certificate (Form 15CB) is mandatory for taxable remittances exceeding \u20b95 lakh in a financial year.<\/li>\n<\/ul>\n<h3 class=\"\" data-start=\"200\" data-end=\"289\"><span class=\"ez-toc-section\" id=\"Section_271-I_%E2%80%93_Penalty_for_Non-Filing_or_Inaccurate_Filing_of_Form_15CACB\"><\/span><span style=\"color: #000080;\"><strong data-start=\"207\" data-end=\"289\">Section 271-I \u2013 Penalty for Non-Filing or Inaccurate Filing of Form 15CA\/CB<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"290\" data-end=\"799\">\n<li class=\"\" data-start=\"290\" data-end=\"361\">\n<p class=\"\" data-start=\"292\" data-end=\"361\">Applicability: On remitter (payer of the foreign remittance).<\/p>\n<\/li>\n<li class=\"\" data-start=\"362\" data-end=\"535\">\n<p class=\"\" data-start=\"364\" data-end=\"376\">Trigger: Fails to furnish required information under Section 195(6) (i.e., fails to file Form 15CA\/CB). &amp; Furnishes inaccurate information in such forms.<\/p>\n<\/li>\n<li class=\"\" data-start=\"536\" data-end=\"589\">\n<p class=\"\" data-start=\"538\" data-end=\"589\">Quantum of Penalty: \u20b9 1,00,000 per default.<\/p>\n<\/li>\n<li class=\"\" data-start=\"590\" data-end=\"683\">\n<p class=\"\" data-start=\"592\" data-end=\"683\">Nature: Discretionary; Assessing Officer may impose it after considering the facts.<\/p>\n<\/li>\n<li class=\"\" data-start=\"684\" data-end=\"799\">\n<p class=\"\" data-start=\"686\" data-end=\"799\">Note: There is no provision for reasonable cause defense under this section, so due diligence is crucial.<\/p>\n<\/li>\n<\/ul>\n<h3 class=\"\" data-start=\"806\" data-end=\"886\"><span class=\"ez-toc-section\" id=\"Section_271J_%E2%80%93_Penalty_on_Professionals_for_Incorrect_Certificates\"><\/span><span style=\"color: #000080;\"><strong data-start=\"813\" data-end=\"886\">Section 271J \u2013 Penalty on Professionals for Incorrect Certificates<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul data-start=\"887\" data-end=\"1493\">\n<li class=\"\" data-start=\"887\" data-end=\"1033\">\n<p class=\"\" data-start=\"889\" data-end=\"1033\">Applicability: On accountants or professionals (usually Chartered Accountants) who issue certificates or reports like Form 15CB.<\/p>\n<\/li>\n<li class=\"\" data-start=\"1034\" data-end=\"1217\">\n<p class=\"\" data-start=\"1036\" data-end=\"1048\">Trigger: Furnishing of incorrect information in any report or certificate under the Income Tax Act. Detected during scrutiny by the AO or Commissioner (Appeals).<\/p>\n<\/li>\n<li class=\"\" data-start=\"1218\" data-end=\"1283\">\n<p class=\"\" data-start=\"1220\" data-end=\"1283\">Quantum of Penalty: \u20b9 10,000 per incorrect certificate.<\/p>\n<\/li>\n<li class=\"\" data-start=\"1284\" data-end=\"1493\">\n<p class=\"\" data-start=\"1286\" data-end=\"1493\">Scope: This aims to hold professionals accountable for negligent or misleading certification, including incorrect DTAA application, misclassification of payments, wrong withholding tax opinions, etc.<\/p>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Form_15CACB_Compliance_Tips\"><\/span><span style=\"color: #000080;\"><strong>Form 15CA\/CB\u00a0<\/strong><strong data-start=\"1506\" data-end=\"1525\">Compliance Tips<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"_tableContainer_16hzy_1\">\n<div class=\"_tableWrapper_16hzy_14 group flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"1527\" data-end=\"2343\">\n<thead data-start=\"1527\" data-end=\"1660\">\n<tr data-start=\"1527\" data-end=\"1660\">\n<th data-start=\"1527\" data-end=\"1555\" data-col-size=\"sm\">Aspect<\/th>\n<th data-start=\"1555\" data-end=\"1576\" data-col-size=\"sm\">Responsibility<\/th>\n<th data-start=\"1576\" data-end=\"1660\" data-col-size=\"lg\">Suggested Action<\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"1794\" data-end=\"2343\">\n<tr data-start=\"1794\" data-end=\"1947\">\n<td data-start=\"1794\" data-end=\"1821\" data-col-size=\"sm\">Correct classification<\/td>\n<td data-col-size=\"sm\" data-start=\"1821\" data-end=\"1842\">Remitter + CA<\/td>\n<td data-col-size=\"lg\" data-start=\"1842\" data-end=\"1947\">Clearly identify whether the payee is non-resident or resident (e.g., a foreign branch of an Indian bank).<\/td>\n<\/tr>\n<tr data-start=\"1948\" data-end=\"2079\">\n<td data-start=\"1948\" data-end=\"1975\" data-col-size=\"sm\">DTAA application<\/td>\n<td data-col-size=\"sm\" data-start=\"1975\" data-end=\"1996\">CA<\/td>\n<td data-col-size=\"lg\" data-start=\"1996\" data-end=\"2079\">Ensure proper referencing of relevant articles and conditions in Form 15CB.<\/td>\n<\/tr>\n<tr data-start=\"2080\" data-end=\"2211\">\n<td data-start=\"2080\" data-end=\"2107\" data-col-size=\"sm\">Threshold applicability<\/td>\n<td data-col-size=\"sm\" data-start=\"2107\" data-end=\"2128\">Remitter<\/td>\n<td data-col-size=\"lg\" data-start=\"2128\" data-end=\"2211\">Use the Rule 37BB list of exempt remittances before triggering 15CA\/CB filing.<\/td>\n<\/tr>\n<tr data-start=\"2212\" data-end=\"2343\">\n<td data-start=\"2212\" data-end=\"2239\" data-col-size=\"sm\">Documentation<\/td>\n<td data-col-size=\"sm\" data-start=\"2239\" data-end=\"2260\">Remitter + CA<\/td>\n<td data-col-size=\"lg\" data-start=\"2260\" data-end=\"2343\">Keep invoices, bank correspondence, and CA working papers to support reporting.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div class=\"absolute end-0 flex items-end\">\n<p>Being meticulous in identifying whether the remittance is to a resident or non-resident and whether it is taxable in India, is essential to avoid these penalties. INR 1 lakh penalty under Section 271-I applies to the remitter for non-filing or incorrect Form 15CA\/CB. and INR 10,000 penalty under Section 271J applies to professionals for errors in Form 15CB or other certificates.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Whether_Form_15CACB_required_when_Transfer_of_Shares_No_capital_gains-2\"><\/span><span style=\"color: #000080;\"><strong>Whether Form 15CA\/CB required when Transfer of Shares &amp; No capital gains<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Transfer_of_Shares_Case_Summary\"><\/span><span style=\"color: #000080;\"><strong>Transfer of Shares Case Summary<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Question:\u00a0 A US company had acquired shares in an Indian company in Dec 2021. \u00a0In April 2025, the US company sells part of such shares to another non-resident (UK entity) for the same price at which the shares were acquired. As per the capital gain computation, the resultant figure will not result in any tax payable situation in India.<\/p>\n<ul>\n<li>Seller: US Company (non-resident)<\/li>\n<li>Buyer: UK Entity (non-resident)<\/li>\n<li>Asset: Shares in an Indian Company<\/li>\n<li>Acquisition Price = Sale Price \u2192 No capital gains<\/li>\n<\/ul>\n<p>Whether to file Form 15CA\/CB despite no tax liability in India &amp; Whether it is advisable to file Form 15CA\/CB in view of provisions of section 195 read with Rule 37BB, even if\u00a0 the transaction is NOT resulting in any capital gain? &amp; If yes, whether Part B\/C\/D of Form 15CA should be filed?<\/p>\n<p><strong>Solution <\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Legal_Position_under_Income_Tax_on_Whether_Form_15CACB_Required_When_Transfer_of_Shares_No_Capital_Gains\"><\/span><span style=\"color: #000080;\"><strong>Legal Position under Income Tax on Whether Form 15CA\/CB Required When Transfer of Shares &amp; No Capital Gains: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Section 195(6) (Income-tax Act, 1961): Any person responsible for paying to a non-resident any sum whether or not chargeable under the Act, shall furnish the prescribed information.<\/li>\n<li>Rule 37BB (Income-tax Rules, 1962): Requires filing of Form 15CA for any remittance to a non-resident and Form 15CB when the remittance is taxable and exceeds \u20b95 lakh, unless specifically exempted. However, Form 15CA is not required if the remittance is covered under the exempt list (which this case is not, since transfer of shares is not on the exemption list).<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Applicability_in_This_Case\"><\/span><span style=\"color: #000080;\"><strong>Applicability in This Case<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><span style=\"color: #000080;\"><strong>Is the transaction chargeable to tax in India?<\/strong><\/span>\n<ul>\n<li>Yes, under Section 9(1)(i) of the Income-tax Act, any transfer of a capital asset situated in India (i.e., shares of an Indian company) is deemed to be income accruing in India.<\/li>\n<li>Even if no capital gain arises due to no appreciation, the transaction is still chargeable \u2014 this is critical.<\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000080;\"><strong>Is TDS required?<\/strong><\/span>\n<ul>\n<li>Since no income arises, no actual TDS is required. But compliance with Form 15CA\/CB is still triggered.<\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000080;\"><strong>Which Part of Form 15CA applies?<\/strong><\/span>\n<ul>\n<li>Part C should be filed, along with Form 15CB issued by a chartered accountant, because:\n<ul>\n<li>The transaction is chargeable to tax in India.<\/li>\n<li>The amount exceeds \u20b95 lakh.<\/li>\n<li>A certificate from AO under Section 197 has not been obtained.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><span style=\"color: #000080;\"><strong>What if no Form 15CA\/CB is filed?<\/strong><\/span>\n<ul>\n<li>Non-filing can attract a penalty under Section 271-I (up to \u20b91 lakh).<\/li>\n<li>If the remitter\/bank is involved and fails to ensure compliance, they may also face scrutiny.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Our_recommended_action_in_this_case\"><\/span><span style=\"color: #000080;\"><strong>Our recommended action in this case : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Obtain a CA Certificate (Form 15CB): Explaining why the amount is not taxable due to absence of gains.<\/li>\n<li>File Part C of Form 15CA: Based on Form 15CB.<\/li>\n<li>Alternatively, consider obtaining a Nil\/Lower TDS certificate under Section 197 from the AO to shift compliance to Part B (less complex).<\/li>\n<li>Document everything. Maintain documentation to support the computation of no capital gain, including acquisition and sale agreements, bank remittance trail, and valuation (if any).<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><span style=\"color: #000080;\"><strong>Conclusion<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Even though no tax is payable, the transaction is technically chargeable to tax under the Act. Hence, Form 15CA (Part C) and Form 15CB are required. To reduce complexity or risk, applying for a lower or NIL TDS certificate from the assessing officer is a safer and more practical route.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Whether Form 15CA\/CB required when Transfer of Shares &amp; No capital gains Exemption from Filing of Form 15CA\/CB 31 categories of foreign remittances that are exempt from the requirement of filing Form 15CA &amp; Form 15CB under Rule 37BB of the Income-tax Rules, 1962. Sl. No. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Nature of Payment 1 Indian investment abroad \u2014 &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[159],"tags":[10287],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29324"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=29324"}],"version-history":[{"count":3,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29324\/revisions"}],"predecessor-version":[{"id":29326,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/29324\/revisions\/29326"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=29324"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=29324"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=29324"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}