Form 15CA and 15CB
Complete Guide to Form 15CA and 15CB: Filing, Applicability, and Compliance
In this post, we will discuss Form 15CA and Form 15CB, what they are, who needs to file them, and how to submit them for foreign payments made from India.
Let us take a closer look at the following sections:
- What Is Form 15CA?
- What Is Form 15CB?
- Why Are Forms 15CA and 15CB Required?
- Applicability of Form 15CA and 15CB
- Situations Where Forms Are NOT Required
- Parts of Form 15CA
- Step-by-Step Filing Process of Form 15CA & 15CB
- Details Required for Filing Forms
- Difference between Form 15CA and 15CB
- Consequences of Non-Compliance
- Conclusion
- FAQs
What Is Form 15CA?
Form 15CA is a declaration used by individuals and businesses in India when making payments to non-residents. It is filed to report foreign payments that may be subject to TDS. The main purpose of this form is to make sure that the required tax is deducted before the money is sent outside India.
This form has to be filed online on the Income Tax Department website before making the foreign remittance. Even if no tax is deducted, Form 15CA may still be required, as it helps the government track funds sent abroad. Failing to file the form can lead to penalties.
What Is Form 15CB?
Form 15CB is a certificate issued by a Chartered Accountant. It is required when you make a taxable payment to a non-resident or a foreign company and the total amount exceeds Rs 5 lakh in a financial year. It confirms that the correct tax has been calculated and paid before transferring the money.
Why Are Forms 15CA and 15CB Required?
Forms 15CA and 15CB are required to ensure tax is properly deducted when money is paid to a non-resident. These forms help the Income Tax Department track foreign payments and verify whether tax has been deducted as per the Income Tax Act.
Form 15CA is an online declaration filed by the person who is sending money outside India. It provides details of the payment and indicates whether tax has been deducted.
Form 15CB is a certificate issued by a Chartered Accountant. It explains the nature of the payment and the applicable tax rate, and confirms that the payment complies with the Income Tax Act and DTAA rules, where applicable.
Together, these forms help ensure timely tax compliance and allow the department to properly monitor foreign remittance transactions.
Applicability of Form 15CA and 15CB
- If the remittance amount is not taxable in India, there is no need to submit Form 15CA or Form 15CB.
- If the remittance falls under the specified exemption list, only Part D of Form 15CA has to be filed.
- If the total remittance during a financial year is less than Rs. 5 lakh, only Form 15CA Part A needs to be submitted.
- If the total remittance during a financial year exceeds Rs. 5 lakh, Form 15CA Part C, along with Form 15CB, must be submitted.
- If the remittance amount is more than Rs. 5 lakh and a certificate has been obtained under Section 195(2), 195(3) or 197 of the Income Tax Act, then only Form 15CA Part B needs to be filed.
Situations Where Forms Are NOT Required
Form 15CA is not needed in the following cases:
- If the payment made is not taxable under Indian income tax laws, Form 15CA is not required.
- If the payment is covered under Rule 37BB, such as a personal remittance for foreign travel, medical treatment, or education, Form 15CA need not be filed.
Form 15CB is not compulsory in the following situations:
- If the total payment made to a non-resident does not exceed Rs. 5 lakh in a financial year, Form 15CB is not required.
- If the remittance is not taxable in India, there is no need to submit Form 15CB.
- If the taxpayer has obtained an order or certificate from the Assessing Officer under Section 195(2) or 195(3) of the Income Tax Act, Form 15CB is not required.
- If the payment is made for purposes covered under Rule 37BB, such as gifts, donations, or maintenance of relatives, Form 15CB is not needed.
Parts of Form 15CA
Form 15CA has different parts, depending on the type and amount of foreign remittance.
|
Parts |
When to File |
|
Part A |
To be filed if the foreign remittance is below ₹5 lakh for a single entity in a financial year. |
|
Part B |
To be filed if the foreign remittance exceeds ₹5 lakh and the taxpayer has obtained an income tax order or certificate from the Assessing Officer to deduct tax at a lower rate. |
|
Part C |
To be filed if the foreign remittance exceeds ₹5 lakh and there is no special income tax certificate. Form 15CB from a Chartered Accountant must also be submitted with this. |
|
Part D |
To be filed if the foreign remittance is covered under the exemption list. Only Part D is required in this case. |
Step-by-Step Filing Process of Form 15CA & 15CB
Form 15CA has to be filed online on the Income Tax e-filing portal. It can be verified using a digital signature or through an electronic verification code.
Step 1
Log in to the Income Tax portal at www.incometax.gov.in
Step 2
Before filing the form, you need to add your Chartered Accountant.
- Go to the Authorised Partners section and select My Chartered Accountant from the menu.
- You will be taken to the My Chartered Accountant page. Click on the Add CA option.
- Enter the membership number of the Chartered Accountant and click on Add.
- You will be asked to give confirmation. Once confirmed, a message will appear indicating that the request to add the CA has been submitted and is pending the CA’s acceptance.
Step 3: How to e-file Form 15CA
- Log in to the Income Tax e-filing portal. Then go to E-file, select Income Tax Forms, and click on File Income Tax Forms.
2. You will be taken to the page called File Income Tax Forms. Click on Others where the source of income is not relevant and select Form 15CA. You can also simply type Form 15CA in the search box and choose it from the list.
3. Now, on the Instructions page, click on Let’s Get Started.
4. On the page titled Information for payment to Non Resident, select the mode of submission and choose the relevant financial year.
- In Form 15CA, you have to choose the applicable part from Part A, Part B, Part C, or Part D, based on your remittance details.
Part A
- Part A is applicable when the total remittance during a financial year is less than Rs. 5 lakh.Â
- You need to enter details of the remitter, the remittee, and the remittance.
Form 15CB from a Chartered Accountant is not required. After entering the details, you have to complete the verification and submit the form.
Part B
- Part B applies when you have obtained approval from the Assessing Officer under Section 195(2), 195(3), or 197.
- You need to fill in remitter, remittee, and remittance details, along with the Assessing Officer order details. Form 15CB is not required in this case.
Part C
- Part C applies when the remittance amount or the total remittance in a financial year exceeds Rs. 5 lakh, and Form 15CB is required.
- You need to provide details of the Chartered Accountant and upload the necessary attachments, along with remitter and remittance details.
- After entering the details, click Assign to CA.
- Confirm the assignment by clicking Yes. A message will appear confirming that the form has been assigned to the CA.
- Go to the Dashboard and select Pending Actions.
You will be able to view Form 15CB uploaded by the CA. You can either accept or reject it. - If you accept the form, you will be redirected to the e-verification page.
- Complete the e-verification using DSC or EVC. Once done, a message saying Submitted Successfully will appear.
Part D
Part D applies when the remittance is not taxable under the Income Tax Act, and no tax is required to be deducted.
- You need to enter remitter details, including name, PAN, status, residential status, contact details, and address.
- Verification of the person filing the form is required. Click on Save.
- After this, enter the remitted details and remittance details.
- After completing the form, verify all the details and click on Preview.
- Carefully check the details shown in Preview and complete the verification using a Digital Signature Certificate.
- Once the verification is completed, a success message will be displayed along with the Transaction ID and Acknowledgement Number. Make sure to note down both numbers. A confirmation message will also be sent to your registered email ID and mobile number.
Details Required for Filing Forms
Key information required for Form 15CA and 15CB:Â
Details of Remitter
- Name of the Remitter
- Address of the Remitter
- PAN of the Remitter
- Main Place of Business of the Remitter
- E-mail and Phone Number of the Remitter
- Status of the Remitter
Details of Remittee
- Name and Status of the Remittee
- Address of the Remittee
- Main Place of Business of the Remittee
- Country of the Remittee
Details of the Remittance
- The country to which the money is being sent
- Currency of the remittance
- Amount of remittance in Indian Rupees
- Planned date of remittance
Bank Details of the Remitter
- Name of the Bank
- Name of the Branch
- BSR Code of the Bank
Difference between Form 15CA and 15CB
|
Point |
Form 15CA |
Form 15CB |
|
Purpose |
It is a declaration filed by the person making the remittance |
It is a certificate issued by a Chartered Accountant |
|
Applicability |
It is mandatory for specified foreign remittances |
It is required only in cases where a CA certificate is needed |
|
Amount limit |
Filed based on the nature and value of remittance |
Required mainly when the remittance exceeds Rs. 5 lakh |
|
Details covered |
Contains basic details of the remittance |
Contains detailed tax analysis and tax applicability |
Consequences of Non-Compliance
If Form 15CA or 15CB is not filed when required, the following can happen:
- The Income Tax Department may impose a penalty on the person making the payment.
- Interest may be charged on the unpaid tax amount.
- The bank may delay or even block the remittance until the forms are submitted.
Conclusion
Filing Form 15CA and Form 15CB is an essential step in complying with India’s tax regulations on foreign remittances. These forms ensure that the correct taxes are deducted and paid before funds are transferred abroad. By understanding the applicability, process, and exemptions of these forms, you can manage your foreign remittances smoothly and avoid potential penalties.
By that, we have come to the end of this post. If you have any questions, feel free to leave them in the comment section below.
FAQs
Q. Who is required to file Form 15CA?
Any person, other than a company, who makes a payment to a non-resident or a foreign company must submit the required details in Form 15CA.
Q. Is Form 15CB required to be filed before Form 15CA Part C?
Yes, Form 15CB must be filed and e-verified first. The Form 15CB acknowledgement number is required to complete and submit Part C of Form 15CA.
Q. What documents are required while filing Form 15CA?
The documents required include the invoice, Tax Residency Certificate, agreement between the parties, and Form 10F.
Q. Can Form 15CA be withdrawn?
Yes, you can withdraw Form 15CA within 15 days of its submission.
Q. Is it compulsory to submit Form 15CB?
No, submitting Form 15CB is not always compulsory. You need to fill it only when the total remittance in a financial year is more than Rs. 5 lakh and an accountant’s certificate is required as per Section 288 of the Income Tax Act, 1961.
Q. How should Form 15CB be verified?
Form 15CB can be verified online only with the Digital Signature Certificate (DSC) of a Chartered Accountant. The CA’s DSC must be registered on the Income Tax e-Filing portal. There is no fixed deadline for submitting Form 15CB, but it should be filed before remitting the amount.
