{"id":414,"date":"2015-09-09T09:00:40","date_gmt":"2015-09-09T09:00:40","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=414"},"modified":"2022-01-31T15:07:00","modified_gmt":"2022-01-31T09:37:00","slug":"15cb-is-issued-for-payment-to-nri","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/15cb-is-issued-for-payment-to-nri\/","title":{"rendered":"Form 15cb To Be Issued For Payment To NRI"},"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-69e7886cc7c9e\" 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-69e7886cc7c9e\"  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\/15cb-is-issued-for-payment-to-nri\/#Form_15cb_to_be_issued_for_the_payment_to_NRI_for_using_Immovable_Property_situated_in_India\" title=\"Form 15cb to be issued for the payment to NRI for using Immovable Property situated in India\">Form 15cb to be issued for the payment to NRI for using Immovable Property situated in India<\/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\/15cb-is-issued-for-payment-to-nri\/#Distributive_Rule_of_Taxation\" title=\"Distributive Rule of Taxation\">Distributive Rule of Taxation<\/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\/15cb-is-issued-for-payment-to-nri\/#CIT_vs_PVAL_Kulandagan_Chettiar\" title=\"CIT vs. P.V.A.L. Kulandagan Chettiar.\">CIT vs. P.V.A.L. Kulandagan Chettiar.<\/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\/15cb-is-issued-for-payment-to-nri\/#Income_from_Agriculture_and_forestry\" title=\"Income from \u00a0Agriculture and forestry\">Income from \u00a0Agriculture and forestry<\/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\/15cb-is-issued-for-payment-to-nri\/#Computation_of_income_from_immovable_property\" title=\"Computation of income from immovable property\">Computation of income from immovable property<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/15cb-is-issued-for-payment-to-nri\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/15cb-is-issued-for-payment-to-nri\/#Procedure_for_15CA_and_15CB\" title=\"Procedure for 15CA and 15CB\u00a0\">Procedure for 15CA and 15CB\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/15cb-is-issued-for-payment-to-nri\/#Penalty_pursuant_to_Section_271-I_of_the_Income_Tax_Act\" title=\"Penalty pursuant to Section 271-I of the Income Tax Act:\u00a0\">Penalty pursuant to Section 271-I of the Income Tax Act:\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><span style=\"color: #ffffff;\">www.carajput.com: Form15CA &amp; 15CB<\/span> <img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13359\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/15CB-means-final-1024x457-1-300x134.jpg\" alt=\"www.carajput.com: Introduction of Form15CA &amp; 15CB\" width=\"827\" height=\"369\" srcset=\"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, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/12\/15CB-means-final-1024x457-1.jpg 1024w\" sizes=\"(max-width: 827px) 100vw, 827px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Form_15cb_to_be_issued_for_the_payment_to_NRI_for_using_Immovable_Property_situated_in_India\"><\/span><strong><span lang=\"EN-IN\" style=\"color: #ff9900;\">Form 15cb to be issued for the payment to NRI for using Immovable Property situated in India<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li style=\"text-align: justify;\">The primary right to tax the income from immovable property is with the country where the immovable property is situated as per Article 6 of the <a href=\"https:\/\/carajput.com\/blog\/tag\/double-taxation-avoidance-agreement-dtaa\/\">DTAA.<\/a><\/li>\n<li style=\"text-align: justify;\">This view holds good for all the Model Tax conventions namely, OECD, U.N, U.S. The situs of the immovable property has a vital role in determining distributive rules for taxation i.e. State of source vs. State of residence. Various paragraphs of Article 6 has been discussed under all the three Model Conventions:<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Distributive_Rule_of_Taxation\"><\/span><span style=\"color: #3366ff;\"><strong><span style=\"text-decoration: underline;\">Distributive Rule of Taxation<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"text-align: justify;\">This paragraph denotes that income derived by a resident of a Contracting State from immovable property situated in other contracting states may be taxed in that other state.<\/li>\n<li style=\"text-align: justify;\">The paragraph uses the words \u201cmay be taxed in\u201d which implies that the state of source is not getting exclusive but primary right to tax and hence, the state of residence may also tax the same income. Double taxation so arising, is mitigated by way of exemption or tax credit mechanism available under the tax treaty (Article 23A or 23B).<\/li>\n<li style=\"text-align: justify;\">There are tax treaties of India with Bangladesh, Greece, and Egypt which provide that- income from immovable property shall be taxable in the contracting state in which such property is located. Thus, the source state retains an exclusive right to tax the income from immovable property.<\/li>\n<li style=\"text-align: justify;\">The use of different terminologies, i.e, \u2018maybe taxed in\u2019 &amp; \u2018shall be taxed only in\u2019 led to controversies in the interpretation of tax treaties.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"CIT_vs_PVAL_Kulandagan_Chettiar\"><\/span><strong><span style=\"color: #008000;\">CIT vs. P.V.A.L. Kulandagan Chettiar.<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"text-align: justify;\">With respect to Article 6, a landmark decision was given by the Apex court of India in the case of <strong><span style=\"color: #008000;\">CIT vs. P.V.A.L. Kulandagan Chettiar.<\/span><\/strong><\/li>\n<li style=\"text-align: justify;\"><strong>\u00a0<\/strong>The Supreme Court held that income arising from rubber estate in Malaysia was not liable to tax in India, even though Article 6 uses the language \u2018may be taxed in\u2019.<\/li>\n<li style=\"text-align: justify;\">A notable fact, in the context of language, \u2018maybe taxed in\u2019 is <strong><span style=\"color: #008000;\">NOTIFICATION 91\/2008 dated. 28 August, 2008<\/span>\u00a0<\/strong> which clarifies \u2013 in case tax treaty provides that any income of a resident of India \u201cmay be taxed in\u201d in the other country, such income shall be included in his total income chargeable to tax in India, and relief shall be granted in accordance with the treaty provisions.<\/li>\n<li style=\"text-align: justify;\">It is clear that India preserves the right to tax the worldwide income of its tax residents also under the tax treaties. However, this notification has remained unnoticed and doesn\u2019t find reference in rulings dealing with the phrase \u2018may be taxed in.<\/li>\n<li style=\"text-align: justify;\">In a situation where a resident of one of the Contracting State earns income from immovable property located in a third state, the same shall fall outside the ambit of Article 6 and it shall bear the character of \u2018other income \u2018 and be taxed accordingly.<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Income_from_Agriculture_and_forestry\"><\/span><span style=\"color: #3366ff;\"><strong><span style=\"text-decoration: underline;\">Income from \u00a0Agriculture and forestry<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"text-align: justify;\">Model tax Conventions also include Income from agricultural and forestry within the ambit of income from immovable property, because of the concept that these incomes are primarily concerned with use of land.<\/li>\n<li style=\"text-align: justify;\">Ownership of immovable property that is exploited for the purpose of agriculture and forestry need not rest with the person carrying out the activities of agriculture and forestry.<\/li>\n<li style=\"text-align: justify;\">However, Income from Agriculture is exempt u\/s 10 of<a href=\"https:\/\/carajput.com\/income-tax-services.php\"> Income Tax Act, 1961<\/a>, hence, there is no need to take the benefit of the treaty.<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Computation_of_income_from_immovable_property\"><\/span><span style=\"color: #3366ff;\"><strong><span style=\"text-decoration: underline;\">Computation of income from immovable property<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"text-align: justify;\">Article 6 deals only with attribution of taxation on income arising from immovable property, it is silent on the modalities of determining income. It also doesn\u2019t mention about deductible expenses.<\/li>\n<li style=\"text-align: justify;\">In absence of such specification, the computation shall have to be carried out as per domestic tax laws of the state of source.<\/li>\n<\/ul>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><span style=\"color: #3366ff;\"><strong><span style=\"text-decoration: underline;\">Conclusion<\/span><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">The primary taxation right over income from immovable property is always with the State of suits.<\/p>\n<figure id=\"attachment_13368\" aria-describedby=\"caption-attachment-13368\" style=\"width: 817px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/09\/images-16-1.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13368\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/09\/images-16-1.png\" alt=\"www.carajput.com: applicability of Form15CA &amp; 15CB\" width=\"817\" height=\"475\" \/><\/a><figcaption id=\"caption-attachment-13368\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">www.carajput.com: applicability of Form15CA &amp; 15CB<\/span><\/figcaption><\/figure>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Procedure_for_15CA_and_15CB\"><\/span><a href=\"https:\/\/www.caindelhiindia.com\/blog\/form-15ca-and-form-15cb-certificate\/\"><span style=\"color: #ff6600;\">Procedure for 15CA and 15CB\u00a0<\/span><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_13369\" aria-describedby=\"caption-attachment-13369\" style=\"width: 955px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/09\/Form15CA15CB_Procedure_1-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-13369\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/09\/Form15CA15CB_Procedure_1-2.jpg\" alt=\"www.carajput.com: Procedure of Form15CA &amp; 15CB\" width=\"955\" height=\"690\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/09\/Form15CA15CB_Procedure_1-2.jpg 955w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/09\/Form15CA15CB_Procedure_1-2-300x217.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/09\/Form15CA15CB_Procedure_1-2-768x555.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2015\/09\/Form15CA15CB_Procedure_1-2-800x578.jpg 800w\" sizes=\"(max-width: 955px) 100vw, 955px\" \/><\/a><figcaption id=\"caption-attachment-13369\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">www.carajput.com: Procedure of Form15CA &amp; 15CB<\/span><\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Penalty_pursuant_to_Section_271-I_of_the_Income_Tax_Act\"><\/span><span style=\"color: #ff9900;\">Penalty pursuant to Section 271-I of the Income Tax Act:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure id=\"attachment_13294\" aria-describedby=\"caption-attachment-13294\" style=\"width: 1024px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/05\/penalty-under-section-271i_2-1024x420-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-13294\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/05\/penalty-under-section-271i_2-1024x420-1.jpg\" alt=\"www.carajput.com; penalty-under-section-271i\" width=\"1024\" height=\"420\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/05\/penalty-under-section-271i_2-1024x420-1.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/05\/penalty-under-section-271i_2-1024x420-1-300x123.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/05\/penalty-under-section-271i_2-1024x420-1-768x315.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/05\/penalty-under-section-271i_2-1024x420-1-800x328.jpg 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption id=\"caption-attachment-13294\" class=\"wp-caption-text\"><span style=\"color: #ffffff;\">www.carajput.com; penalty-under-section-271i<\/span><\/figcaption><\/figure>\n<ul>\n<li>Any person convicted of delaying or failing to submit Forms 15CA and 15CB to the tax authority is entitled to impose a penalty of Rs. 1 Lakh on the defaulter.<\/li>\n<li>The penalty is also payable in the event that the person files incorrect information or files the wrong section of Form 15CA.<\/li>\n<li>The person shall be deemed to have defaulted until he\/she has been unable to make a reasonable reason for failure to submit the form.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Popular Articles :\u00a0<\/strong><\/span><\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/blog\/basic-provision-of-form-15cb-15ca\/\">Basic Provision of Form 15CB &amp; 15CA<\/a><\/li>\n<li><a href=\"https:\/\/carajput.com\/blog\/form-15ca-15cb-submission-process-has-been-redesigned\/\">New Form 15CA &amp; 15CB Submission Process redesigned <\/a><\/li>\n<\/ul>\n<p style=\"text-align: justify;\">For query or help, contact: <a href=\"mailto:singh@carajput.com\">singh@carajput.com<\/a>\u00a0or call at 9555555480<\/p>\n","protected":false},"excerpt":{"rendered":"<p>www.carajput.com: Form15CA &amp; 15CB Form 15cb to be issued for the payment to NRI for using Immovable Property situated in India The primary right to tax the income from immovable property is with the country where the immovable property is situated as per Article 6 of the DTAA. This view holds good for all the &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":[3258,3255,8524,3252,3254,3257],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/414"}],"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=414"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/414\/revisions"}],"predecessor-version":[{"id":21689,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/414\/revisions\/21689"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}