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Form 15CA & Form 15CB

  • An Income Tax Calculator can help estimate the tax implications of foreign payments. It ensures that the correct TDS rate is applied before making the remittance.

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Form 15CA & Form 15CB – Understanding Their Purpose & Requirements

 

Form 15CA and Form 15CB are mandatory tax compliance documents required when remitting payments abroad. These forms help the Income Tax Department track foreign remittances and ensure that the appropriate taxes are deducted at source (TDS) on such payments.

 

What is Form 15CA?

  • Form 15CA is an online declaration submitted by the remitter (payer) before making a foreign remittance.
  • It is used by the Income Tax Department to collect details about taxable payments made to non-residents.
  • The form serves as an information tracking tool, ensuring TDS compliance on foreign payments.

 

What is Form 15CB?

  • Form 15CB is a certificate issued by a Chartered Accountant (CA).
  • It certifies that the nature of the payment and applicable taxes have been correctly determined under Indian tax laws.
  • This certification is required before filing Form 15CA for certain transactions, particularly those that are taxable in India.

 

Why Are Form 15CA & 15CB Required?

  • To track foreign remittances and prevent tax evasion.
  • To ensure proper tax deductions on payments made to non-residents.
  • To comply with the Income Tax Act and RBI regulations.

How Form 15CA & 15CB Work Together?

  • A business or individual plans to send money abroad (foreign remittance).
  • A Chartered Accountant reviews the payment details and issues Form 15CB (if applicable).
  • The remitter files Form 15CA online through the Income Tax e-Filing Portal.
  • The bank processes the remittance only after verifying these forms.

Use of Income Tax Calculator

An Income Tax Calculator can help estimate the tax implications of foreign payments. It ensures that the correct TDS rate is applied before making the remittance.

How to e-File Form 15CA?

  • Log in to the Income Tax e-Filing portal.
  • Go to “e-File” → “Income Tax Returns” → “File Income Tax Forms”.
  • Select “Others” and choose Form 15CA.
  • Click on “Let’s Get Started” on the Instructions Page.
  • Enter payment details, select Filing Type, and choose Financial Year.
  • Select the applicable Part (A, B, C, or D) based on remittance type.
  • Fill in remitter, remittee, and remittance details.
  • For Part C, assign to CA and verify Form 15CB before submission.
  • Preview, verify, and complete e-Verification using DSC or EVC.
  • Submit and note the Transaction ID and Acknowledgement Number.

How to e-File Form 15CB?

  •   Log in to the Income Tax e-Filing portal.
  • Go to “e-File” → “Income Tax Forms” → “File Income Tax Forms”.
  • Select “Form 15CB” from the list.
  • Click on “Let’s Get Started” on the Instructions Page.
  • Enter remitter, remittee, and remittance details.
  • Fill in taxability details, applicable DTAA, and TDS information.
  • Attach supporting documents, if required.
  • Preview and verify all details before submission.
  • Complete e-Verification using DSC or EVC.
  • Submit and note the Transaction ID and Acknowledgement Number.

Frequently Asked Question

1. Is it mandatory to submit Form 15CB before Form 15CA?

No, Form 15CB is required only when applicable (i.e., for payments exceeding ₹5,00,000 or where tax liability exists). If Form 15CB is required, it must be obtained before submitting Form 15CA.

2. Are there any exemptions for filing Form 15CA & Form 15CB?

Yes, filing is exempt in the following cases:

  • Remittances covered under the specified list in Rule 37BB of the Income Tax Rules (e.g., payments for imports, educational expenses, travel expenses).
  • Remittances not taxable in India.

3. Can Form 15CA be revised after submission?

  • No, once submitted, Form 15CA cannot be revised. However, if incorrect details are provided, a new corrected form can be filed, and the bank can be informed accordingly.

4. Is Form 15CA required for foreign remittances by individuals?

  • Yes, if the remittance is taxable. However, certain payments like educational fees, personal gifts, and medical expenses may be exempt under Rule 37BB.

5. Can Form 15CB be withdrawn?

No, once Form 15CB is filed, it cannot be withdrawn. However, a revised form can be issued if necessary.

6. Can Form 15CA be filed without a Digital Signature Certificate (DSC)?

  • Yes, individuals can file it using their Aadhaar-based OTP. However, companies, LLPs, and firms must use DSC.