Form 15ca And 15cb Of Income Tax

Form 15CA is a declaration form that needs to be submitted when a resident makes a payment to a non-resident. It is a means of furnishing information about payments that are taxable in the hands of the recipient.

Banks and authorised dealers ensure that Form 15CA is submitted before moving ahead with the remittance. It helps to know whether tax has been deducted from the payment made to the non-resident or not. Individuals can submit the form online. In certain scenarios, form 15CA must be submitted along with form 15CB.

Parts of Form 15CA

• Form 15CA consists of distinct parts that must be filled based on different scenarios:

• Part A: This part must be completed for taxable remittances up to ₹5 lakh in a given financial year.

• Part B: You are required to fill out this part when the remittance exceeds ₹5 lakh and a certificate under Section 195(3)/195(2)/197 of the Income Tax Act is acquired from the Assessing Officer (AO).

• Part C: Form 15CA Part C applicability is when the taxable remittance exceeds ₹5 lakh in a financial year and no special income tax certificate is obtained. You also need to submit form 15CB acquired from a CA.

• Part D: Part D is to be filled when the remittance amount is not subject to taxation as per the tax laws.

Form 15CB is a certification from a Chartered Accountant (CA) that states that the taxes are paid properly. It needs to be uploaded with form 15CA when the total remittance exceeds ₹5 lakh in a financial year.

The CA states the payment details, the rate of TDS, the purpose of remittance, etc. The form ensures that TDS from the payment to a non-resident complies with the provisions of the Income Tax Act and the Double Taxation Avoidance Agreement.

Form 15CA is applicable when a payment is being made to a non-resident individual or entity regardless of the taxability of the remittance. On the other hand, form 15CB is applicable when the remittance is taxable and exceeds ₹5 lakh in a financial year.

Useful Link: Form 15CA and !5 CB download

Here is the information and the list of documents needed to fulfil Form 15CA and 15CB requirement:

Remitter’s Details

Name

Address

Permanent Account Number

Primary business location

Email address and contact number

Digital signature

Bank details like bank’s name, branch and BSR code

Status

Recipient’s Details

Status and name

Country

Address

Primary business location

Details of Remittance

Currency in which remittance is done

Country to where remittance is made

Amount of remittance in Indian national rupees

Proposed date of the remittance

Nature of the remittance as per the agreement

Other Documents

Form 10F filled by the person authorised by the remittee

Tax residency certificate from the recipient

Certificate that the recipient does not have a permanent establishment in India

Now that you know the purpose and applicability of form 15CA and 15CB, let us understand the process of filling out the forms in detail.

Form 15CA

Here’s a step-by-step guide to e-file form 15CA:

Step 1: Visit the Income Tax Department's official website or e-filing portal

Step 2: Click on the “E-File” tab and then choose “Income Tax Returns”. Now click the “File Income Tax Forms” option.

Step 3: Click “Others” on the new page and choose Form 15CA from the dropdown menu

Step 4: Click “Let’s get started” on the instructions page

Step 5: Now under the “Information for payment to non-resident” section, enter the filing type (Original/Revised), select the financial year and hit “Continue”

Step 6: Now choose the applicable part from A, B, C or D

Part A requires details of the remitter (sender of funds), recipient (receiver of funds) and remittance details. Form 15CB is not required for Part A. Once relevant details are provided, complete the verification process.

Part B requires details of the remitter, recipient, remittance and details of the AO order. Again, form 15CB is not required here.

Part C requires details of the remitter, recipient and the remittance along with the details of the Chartered Accountant. You then need to click “Assign to CA” and then “Yes” to confirm. You can check if Form 15CB has been uploaded by the CA by clicking “Pending Actions”.

You can either "Accept” or “Reject” form 15CA. After accepting, complete e-verification with a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC)

Part D requires details of the remitter, remittance and the recipient. Click “Preview” to e-verify. Also, verify the details of the individual submitting Form 15CA and complete e-verification with a DSC. Remember to note the acknowledgement number and the transaction ID shown on the screen.

Form 15CB

The CA has to complete form 15CB. Here’s the step-by-step guide on how to fill out Form 15CB:

Step 1: Add the Chartered Accountant through the procedure explained in Form 15CA.

Step 2: Once the CA is added as an authorised partner, the remaining steps will be handled by the CA.

Step 3: The next step is to download the “Form 15CB Utility .xml file”. It can then be prepared offline.

Step 4: Choose the “e-file” option and then click “Upload Form” and furnish details like the PAN of the assessee, PAN of the CA, form name-15CB and filing type-Original.

Step 5: Upload the .xml file using the Utility and digital signature to complete the submission. Now click “Submit.”

Step 6: Once the CA successfully submits form 15CB, the form’s status can be viewed by logging in and selecting the “For Your Information” and “Worklist” tab.

Complying with the income tax laws is vital to aid in the country's economic development and also avoid penalties. If you are making a payment to a non-resident, you must understand the intricacies of Form 15CA and 15CB for foreign remittance. These two forms ensure that tax is deducted as per Section 195 of the Income Tax Act.

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