Form 15CA and 15CB

When an individual or business sends money to a Non-Resident Indian (NRI) or a foreign entity, the sender has to file Form 15CA and Form 15CB with the Income Tax Department. It is important to file these forms to track foreign remittances and determine potential tax liabilities.

This page covers information on Form 15CA and 15CB meaning, applicability and the process to file these forms online. 

Form 15CA Meaning 

Form 15CA is a declaration by the remitter. It is used as a document to provide information on payments that are chargeable to tax in the hands of recipient non-residents.   

The purpose of Form 15CA is to maintain an effective information processing system that the Income Tax Department can use to track foreign remittances and their tax liability. Authorised dealers and banks are now more vigilant about making sure that they receive this form before the remittance is made. 

Parts of Form 15CA

Form 15CA is divided into four parts – A, B, C, and D, which have been explained below:

• Part A: Taxable remittance up to Rs 5 lakh.
• Part B: This must be filled out for tax remittances of more than Rs 5 lakh.
• Part C: This part needs to be filled out for taxable remittances of more than Rs 5 lakh, along with Form 15CB, signed by a chartered accountant. 
•  Part D: This part needs to be filled out when the payment made to an NRI is not charged under the Income Tax Act. 

Form 15CB Meaning

Form 15CB is a certificate issued by a Chartered Accountant registered under the Income Tax Act. It certifies that the provisions of the Income Tax Act and any applicable Double Taxation Avoidance Agreement (DTAA) have been complied with regarding tax deductions for a remittance. 

This form need not be filled out if the remittance or payment to a non-resident Indian is not taxable. It is only needed if tax is charged. This is evidence that the payment is in accordance with the applicable tax laws and assists in avoiding any potential tax penalties. 

Form 15CA and 15CB Applicability

Applicability of Form 15CA

• It applies to payments to non-residents or foreign enterprises, regardless of whether the remittance is subject to taxes. 
• It is applicable when the remitter is a resident or non-resident. 
• It is applicable when it is necessary to prove that any payment made outside India has been subject to tax in India. 

Applicability of Form 15CB

• This form is applicable when the remittance to a non-resident or a foreign enterprise is taxable. 
• It is applicable when the remittance amount is more than Rs 5 lakh. 
• It is needed when there is no order from the Assessing Officer (AO). 
• Form 15CB must be filled out and signed by a chartered accountant to make remittances. 

How to File Form 15CA Online?

The steps to file Form 15CA are given below in detail:

Step 1: Go to the Income Tax online portal, click the File electronically tab, choose Income Tax Returns, and select the File Income Tax Forms option. 

Step 2: Now, click on Others and choose Form 15CA. 

Step 3: You can find the form in the search box. 

Step 4: On the instructions page, choose Let's get started.

Step 5: On the next page, choose Information for payment to a non-resident.

Step 6: Enter the filing type - Original or Revised.

Step 7: Choose the financial year. 

Step 8: Now, choose your applicable option from the four parts of the form. Refer to the table above.

Step 9: Verify your details. 

Step 10: Preview your information and click on Submit.

You will get a confirmation on your registered email and phone number. 

How to file Form 15CB Online?

Form 15CB requires completion by a Chartered Accountant. Here are the steps for filling out Form 15CB:

Step 1:  Go to the Income Tax online portal. 

Step 2: Select the ‘Authorised Partners’ tab and click on ‘My Chartered Accountant (CA) from the drop-down menu.

Step 3: Click on the ‘Add CA’ option on the new page.

Step 4: Enter the membership number and choose the Form 15CB option. 

Step 5: Click on ‘Add’, and you will be required to give a ‘Confirmation’.

A pop-up message will appear saying, ‘Request for adding CA has been submitted successfully; it is pending acceptance by the CA.’

The remaining form should be completed by the CA. For this, the CA's user account needs to be registered. 

Information Required While Filing Form 15CA and CB

Here is the list of essential information that must be provided by an individual while filing Form 15CA and CB:

1. Remitter Details: Name, Address, PAN, Location, Email ID, Phone Number, and Status of the Remitter. 
2. Remittee Details: Name, Address, Country of Remittee, and Principal Place of the Business. 
3. Remittance Details: Country to which the remittance is made, currency of the remittance, amount being remitted, proposed date of the remittance, and nature of the remittance.
4. Bank Details: Remitter's bank name, bank branch, and BSR code.