Forms 15CA and 15CB are crucial income tax compliance documents in India, primarily used when making payments to Non-Residents (including foreign companies). Their purpose is to ensure that proper tax is deducted (TDS) on such remittances as per the Income Tax Act, 1961, and applicable Double Taxation Avoidance Agreements (DTAAs).
What are Form 15CA and Form 15CB?
Form 15CA (Remittance Information)
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- This is a declaration by the remitter (the person or entity making the payment from India to a non-resident).
- It provides details of the payment being made, the recipient, and the nature of the remittance, along with information about the tax deducted.
- Its primary goal is to allow the Income Tax Department to track foreign remittances and ensure that the appropriate tax has been paid or accounted for.
- It must be submitted before the actual remittance is made.
Form 15CB (Accountant’s Certificate)
- This is a certificate issued by a Chartered Accountant (CA).
- The CA certifies the details of the payment, the applicable TDS rate (considering the Income Tax Act and DTAA provisions), the actual TDS deducted, and confirms compliance with Section 195 of the Income Tax Act.
- It essentially acts as a tax determination certificate, where the CA examines the remittance’s chargeability to tax in India.
- Form 15CB is generally required only in specific circumstances (explained below) and must be filed by the CA BEFORE the corresponding Part C of Form 15CA can be filed by the remitter.
Who Needs to File Form 15CA and 15CB?
Any person (individual, company, firm, etc.) in India who is responsible for making a payment to a Non-Resident (not being a company) or to a Foreign Company, where such sum is chargeable to income tax in India, may need to furnish Form 15CA.
Form 15CB is required by the remitter, but it must be obtained from a practicing Chartered Accountant.
Applicability and Parts of Form 15CA
Form 15CA is divided into four parts, and the specific part you need to fill depends on the nature and amount of the remittance and whether a CA certificate is required.
Part A:
Applicability
When the remittance (or the aggregate of remittances in a financial year) does not exceed ₹5 lakh, and the remittance is chargeable to tax in India.
Requirement
Only Part A of Form 15CA needs to be filled. No Form 15CB is required.
Part B:
Applicability
When the remittance (or aggregate) exceeds ₹5 lakh, and an order/certificate has been obtained from the Assessing Officer (AO) under Section 195(2), 195(3), or 197 of the Income Tax Act (e.g., for lower deduction or no deduction of tax).
Requirement
Part B of Form 15CA needs to be filled. No Form 15CB is required (as the AO’s order replaces the CA’s certificate).
Part C:
Applicability
When the remittance (or aggregate) exceeds ₹5 lakh, and the remittance is chargeable to tax in India, and a certificate in Form 15CB from a Chartered Accountant has been obtained.
Requirement
Form 15CB must be uploaded by a CA first, and then the remitter can file Part C of Form 15CA by referencing the Acknowledgement Number of the filed Form 15CB.
Part D:
Applicability
When the remittance is not chargeable to tax under the Income Tax Act, 1961. This means the income is either wholly exempt or not taxable in India as per the provisions of the Act or a DTAA.
Requirement
Only Part D of Form 15CA needs to be filled. No Form 15CB is required.
When are Forms 15CA and 15CB NOT Required?
Even if you’re making a payment to a non-resident, you might not need to file these forms in the following cases:
Specific Exempted Remittances (Rule 37BB)
- The Income Tax Department has a list of specific remittance codes (as per RBI’s purpose codes) for which Forms 15CA and 15CB are not required. This list was expanded in recent years and includes payments like:
- Indian investment abroad (equity, debt, real estate)
- Loans extended to non-residents
- Operating expenses of Indian shipping/airline companies abroad
- Remittances towards business travel, pilgrimage, medical treatment, education (fees, hostel expenses), etc.
- Payments for imports of goods.
- Remittance towards payment or refund of taxes.
- Many others specified under Rule 37BB(3).
- The Income Tax Department has a list of specific remittance codes (as per RBI’s purpose codes) for which Forms 15CA and 15CB are not required. This list was expanded in recent years and includes payments like:
Remittance by an individual, not requiring RBI approval
If an individual is making a remittance that does not require prior approval of the Reserve Bank of India (RBI) under Section 5 of FEMA, 1999 (read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000), then Forms 15CA and 15CB are generally not required. This typically covers small remittances under the Liberalised Remittance Scheme (LRS) for certain personal purposes.
Due Dates for Filing 15CA and 15CB
There are no specific “due dates” like for ITRs.
- Forms 15CA and 15CB must be filed/obtained BEFORE making the actual remittance. This is because the bank (Authorised Dealer) through which the remittance is made will typically ask for these forms before processing the transaction.
Process for Filing Form 15CA and 15CB Online (on Income Tax e-filing portal)
The process involves both the remitter and, if applicable, a Chartered Accountant.
Step 1: CA Files Form 15CB (if required for Part C of 15CA)
Taxpayer Assigns Form to CA
The remitter (taxpayer) must log in to their e-filing account on www.incometax.gov.in.
- Go to “Authorised Partners” -> “My Chartered Accountant (CA)”.
- Click “Add CA” and enter the CA’s membership number.
- “Assign Form” -> Select “Form 15CB” for the relevant Financial Year and click “Add”. This creates a link between the taxpayer and the CA for this form.
CA Logs in and Files 15CB
The assigned CA logs into their e-filing account.
- Go to “e-File” -> “Income Tax Forms” -> “File Income Tax Forms”.
- Select “Form 15CB”.
- Choose the “Submission Mode” (Online or Offline Utility is available).
- Select the Financial Year and enter the PAN of the taxpayer who assigned the form.
- Fill in all the required details: remitter details, remittee details, remittance details, taxability under Income Tax Act (with/without DTAA), and CA details.
- The CA will electronically verify the form using their Digital Signature Certificate (DSC).
Acknowledgement
Upon successful submission, an Acknowledgement Number for Form 15CB is generated. This ARN is crucial for the remitter to file Form 15CA (Part C).
Step 2: Remitter Files Form 15CA
- Login to e-Filing Portal: The remitter logs into their account on www.incometax.gov.in.
- Navigate to Form 15CA: Go to “e-File” -> “Income Tax Forms” -> “File Income Tax Forms”.
- Select Form 15CA: Choose “Form 15CA”.
- Select Assessment Year and Part:
- Select “Assessment Year: 2025-26” (for FY 2024-25).
- Choose the relevant “Part” (A, B, C, or D) based on your remittance criteria.
- Fill in Details:
- Part A/B/D: Fill in the remitter’s, remittee’s, and remittance details. For Part B, also provide AO order details. For Part D, state why the remittance is not taxable.
- Part C: This is where the ARN of the pre-filed Form 15CB (filed by the CA) is crucial. Enter the ARN of the 15CB form. The details from the 15CB will often be auto-populated or linked.
- Preview and Submit: Review all the details thoroughly.
- E-Verify the Return: The remitter must e-verify the submitted Form 15CA using:
- Aadhaar OTP
- Net Banking
- EVC (via pre-validated bank/Demat account)
- Digital Signature Certificate (DSC) (Mandatory for companies and some other entities, optional for individuals).
- Acknowledgement: Upon successful e-verification, an Acknowledgement Number for Form 15CA is generated.
Step 3: Provide to Bank
- The remitter will then provide the generated Acknowledgement Numbers (and possibly PDF copies) of the filed Form 15CA (and 15CB if applicable) to their bank (Authorised Dealer) to process the foreign remittance.
Consequences of Non-Filing or Inaccurate Filing
Penalty
If a person fails to furnish Form 15CA or furnishes inaccurate information, a penalty of ₹1 lakh may be levied under Section 271I of the Income Tax Act.
Bank Refusal
Banks/Authorised Dealers are mandated not to process foreign remittances without the submission of the required Forms 15CA/15CB. This can cause significant delays or even prevent the transaction.
Scrutiny
Non-compliance or incorrect reporting can lead to further scrutiny by the Income Tax Department.
Given the complexities, especially concerning the taxability of payments under DTAA, it is always advisable to consult a our tax experts for clarity and assistance in filing Forms 15CA and 15CB for foreign remittances.