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15CA & 15CB Filings
 

Forms 15CA and 15CB are crucial documents in India's Income Tax framework, primarily related to foreign remittances from India to non-residents or foreign companies. They ensure that proper tax has been deducted at source (TDS) on payments made to non-residents, as per the provisions of the Income Tax Act, 1961, and applicable Double Taxation Avoidance Agreements (DTAAs).

 

What are Form 15CA and Form 15CB?

  • Form 15CA (Certificate of Remittance): This is a declaration by the person making the remittance (the remitter) to a non-resident or a foreign company. It provides information about the payment being made and its taxability in India. Banks and authorized dealers require this form before facilitating any outward remittance.

  • Form 15CB (Chartered Accountant's Certificate): This is a certificate issued by a Chartered Accountant (CA) that certifies the details of the payment, the applicable TDS rate, the TDS deduction, and other relevant information about the nature and purpose of the remittance. It essentially confirms that the tax laws and DTAA provisions have been complied with.

 

Why are they required?

The primary purpose of these forms is to:

  • Track foreign remittances: The Income Tax Department uses these forms to monitor cross-border financial transactions.

  • Ensure tax compliance: They help ensure that appropriate taxes are deducted at source on income accruing to non-residents from India.

  • Facilitate banking: Banks and authorized dealers rely on these forms to ensure regulatory compliance before processing foreign outward remittances.

 

Who needs to file Form 15CA and 15CB?

  • Form 15CA: Any person (individual, company, firm, etc.) responsible for making a payment to a non-resident (not being a company) or a foreign company is generally required to file Form 15CA before remitting the amount.

  • Form 15CB: This form is required to be furnished by a Chartered Accountant. It is needed only when the remittance or aggregate of remittances to a non-resident (not being a company) or a foreign company exceeds ₹5 lakh in a financial year and is chargeable to tax in India, and a certificate from the Assessing Officer (u/s 195(2), 195(3), or 197) has not been obtained.

 

Parts of Form 15CA:

Form 15CA is divided into four parts, and the part you need to fill depends on the nature and amount of the remittance:

  • Part A: For remittances (or aggregate of remittances) up to ₹5 lakh in a financial year that are chargeable to tax. (No 15CB required)

  • Part B: For remittances (or aggregate of remittances) exceeding ₹5 lakh in a financial year that are chargeable to tax, and an order/certificate under Section 195(2)/195(3)/197 of the Act has been obtained from the Assessing Officer. (No 15CB required)

  • Part C: For remittances (or aggregate of remittances) exceeding ₹5 lakh in a financial year that are chargeable to tax, and a certificate in Form 15CB from an accountant (CA) has been obtained. (15CB is mandatory here)

  • Part D: Where the remittance is not chargeable to tax under the Income Tax Act, 1961. (No 15CB required)

 

When is Form 15CA/15CB NOT required?

Form 15CA and 15CB are not required in the following situations:

  • When the remittance is not chargeable to tax under the Income Tax Act (covered by Part D of Form 15CA).

  • For a specific list of payments specified under Rule 37BB(3) of the Income Tax Rules. This list includes various types of transactions like:

    • Imports (trade-related)

    • Indian investment abroad (in equity, debt, etc.)

    • Payments for operating expenses of Indian shipping companies abroad

    • Intermediary trade

    • Remittance by an individual not requiring prior RBI approval (as per Schedule III to Foreign Exchange (Current Account Transaction) Rules, 2000), provided it's not for a foreign tour or purchase of foreign assets.

  • If the aggregate of remittances by an individual during the financial year does not exceed ₹5 lakh and is not for a foreign tour or payment for the purchase of any foreign asset.

 

Online Filing and Registration Process on the Income Tax e-filing Portal:

The entire process is online and involves both the remitter (for 15CA) and the Chartered Accountant (for 15CB).

1. Registration on the e-filing Portal (for Remitter and CA):

  • Remitter: Must be a registered user on the Income Tax e-filing portal (incometax.gov.in) with a valid PAN and password.

  • Chartered Accountant (CA): Must be registered as a "Chartered Accountant" on the e-filing portal with a valid membership ID and a registered Digital Signature Certificate (DSC).

2. CA Appointment by Taxpayer (Remitter) for Form 15CB:

  • This step is only required if you need a CA to file Form 15CB (i.e., for Form 15CA Part C).

  • Login as Taxpayer: The remitter logs in to their e-filing account.

  • Navigate to "Authorized Partners": Go to e-File -> Authorized Partners -> My Chartered Accountant(s).

  • Add CA: Click on "Add CA" and enter the CA's membership number.

  • Assign Form: Select Form 15CB and the relevant financial year, then click "Add."

  • Confirmation: The CA will receive a request, which they need to accept within 15 days. Once accepted, the CA will be linked to the remitter's account for filing Form 15CB.

3. Filing Form 15CB by Chartered Accountant:

  • Login as CA: The CA logs in to their e-filing account.

  • Navigate to "File Forms": Go to e-File -> Income Tax Forms -> File Form 15CB.

  • Select Form 15CB: The CA selects Form 15CB and fills in the required details related to the remitter, remittee, remittance amount, nature of remittance, TDS details, and DTAA applicability.

  • Verification: Form 15CB must be e-verified using the CA's Digital Signature Certificate (DSC).

  • Submission: Upon successful submission, an Acknowledgement Receipt Number (ARN) for Form 15CB is generated. This ARN is crucial for the remitter to file Form 15CA Part C.

4. Filing Form 15CA by Remitter:

  • Login as Remitter: The remitter logs in to their e-filing account.

  • Navigate to "File Forms": Go to e-File -> Income Tax Forms -> File Form 15CA.

  • Select Part: Choose the relevant part of Form 15CA (Part A, B, C, or D) based on the remittance details.

  • Fill Details:

    • For Part A, B, D: Fill in the remitter, remittee, and remittance details directly on the portal.

    • For Part C: You will be prompted to enter the ARN of the e-verified Form 15CB filed by the CA. Once the ARN is validated, some details from Form 15CB will be pre-filled. You then complete any remaining fields.

  • Preview and Submit: Review all details carefully.

  • E-Verify Form 15CA: Form 15CA can be e-verified using DSC or EVC (Electronic Verification Code). If the remitter has a registered DSC, it's recommended to use it. Otherwise, Aadhaar OTP, Net Banking EVC, or Bank Account EVC can be used.

  • Acknowledgement: Upon successful e-verification, an acknowledgement number is generated, and a downloadable PDF of the submitted Form 15CA is available.

Important Considerations:

  • Timing: Form 15CA (and 15CB, if applicable) must be filed before the actual remittance is made through the bank/authorized dealer.

  • Penalties: Failure to furnish Form 15CA and/or 15CB when required can lead to penalties under Section 271I of the Income Tax Act, which can be up to ₹1 lakh.

  • Withdrawal: Form 15CA can be withdrawn within 7 days from the date of submission if there's an error.

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