Procedure for filing Form 15 CA and 15CB
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The process for filing Form 15 CA and Form 15CB is as follows:
- Obtain a valid PAN: Before filing Form 15CA, the Income Tax Department must issue a valid Permanent Account Number (PAN).
- Determine whether Form 15CB is required: If the remittance exceeds INR 5 lakhs, then Form 15CB must be filed by a Chartered Accountant (CA) certifying that the remittance is taxable in India and the appropriate taxes have been paid.
- Fill Form 15 CA: The person making the remittance must fill out Form 15CA online on the income tax department’s e-filing website. The form requires the details of the remitter, the remittee, the nature of the remittance, and the remittance amount.
- Get CA certification: If Form 15CB is required, the remitter must obtain a certificate from a CA in Form 15CB.
- Submit Form 15CA and 15CB: Once the Form 15 CA and CB forms are filled and certified, the remitter must upload the forms on the income tax department’s e-filing website.
- Obtain an acknowledgment: After submitting Form 15 CA, you will receive an acknowledgment with a unique number. You should keep this acknowledgment for future reference.
Note that the procedure for filing Form 15 CA and Form 15CB may vary depending on the specific transaction and other factors.
IndiaFilings can help you file Form 15 CA-CB, from preparation to submission, and ensure that you comply with all the applicable regulations.
15CA – 15CB Filing FAQ’s
What is Form 15CA-15CB?
Form 15CA is a declaration form that must be submitted electronically by the remitter to the bank before paying a non-resident. Form 15CB is a certificate issued by a Chartered Accountant (CA) to verify the deduction of taxes and the completion of other regulatory requirements.
What is the difference between Form 15CA and Form 15CB?
Form 15CA is a declaration form submitted by the remitter to the bank. At the same time, Form 15CB is a certificate issued by a CA to verify the deduction of taxes and the completion of other regulatory requirements.
Who is required to file Form 15CA-15CB?
Form 15CA and 15CB must be filed by a person responsible for remittance outside India. The remitter can be an individual, a company, or any other entity paying a non-resident or a foreign company.
What are the different types of transactions that require 15CA-15CB filing?
Different types of transactions require Form 15CA and 15CB filing. Some of them are:
- Payment for import of goods or services.
- Payment for royalty or technical fees.
- Remittance of dividends.
- Payment for interest on loans or deposits.
- Payment for foreign collaborations or joint ventures.
- Remittance for education-related expenses.
- Remittance for medical treatment abroad.
- Remittance for travel expenses.
- Remittance for payment of insurance premium.
- Any other taxable payment or remittance under the Income Tax Act, 1961.
Is Form 15CA-15CB mandatory for all foreign remittances?
Form 15CA and 15CB are not mandatory for all foreign remittances. The requirement to file these forms depends on the nature and amount of the remittance.
As per the current regulations, Form 15CA and 15CB are mandatory for remittances made outside India, except for the following:
- Remittances are covered under specified exemptions as per Rule 37BB of the Income Tax Rules, 1962. Some examples of exempted remittances include gifts and donations, payments made by the Government, payments for certain investments, etc.
- Remittances below INR 5 lakhs are not subject to TDS under Section 195 of the Income Tax Act, 1961.
How is the information provided in Form 15CA verified?
The information provided in Form 15CA is verified by the Authorized Dealer Bank (AD Bank) and is cross-checked with the information in Form 15CB.
Can Form 15CA-15CB be filed manually?
Form 15CA-15CB must be filed electronically through the Income Tax Department’s website.
What is the penalty for not filing Form 15CA-15CB?
Non-compliance with the requirement to file Form 15CA and 15CB can attract penalties and interest. The penalty for not filing Form 15CA and 15CB is covered under Section 271-I of the Income Tax Act, 1961. As per the current regulations, the penalty for non-filing or incorrect filing of Form 15CA and 15CB is INR 1 lakh or equal to the transaction amount, whichever is lower. The penalty can be imposed by the Assessing Officer (AO) after providing an opportunity for the remitter to explain the reasons for non-compliance.
Can the same Form 15CA be used for multiple transactions?
No, the same Form 15CA cannot be used for multiple transactions. A separate Form 15CA must be filled for each transaction, even if the transactions are related to the same beneficiary.
Is Form 15CB required for all transactions?
The same Form 15CA can be used for multiple transactions, provided that the transactions are of the same nature, i.e., the purpose, amount, and beneficiary are the same for all the transactions.
As per the guidelines issued by the Income Tax Department, a single Form 15CA can be used for multiple transactions if the following conditions are met:
- The nature and purpose of the remittance are the same for all the transactions.
- The amount of remittance is the same for all the transactions.
- The remittance is made to the same beneficiary.
- The country of the remittance is the same for all the transactions.
Who can issue Form 15CB?
Form 15CB is a certificate issued by a Chartered Accountant (CA) in India. The CA certifies that the remittance made by the remitter is not taxable in India and that the tax, if any, has been deducted and deposited with the Indian Government as per the relevant provisions of the Income Tax Act, 1961
What is the validity of Form 15CB?
Form 15CB is valid for six months from the date of its issuance. This means that the remitter should ensure that the remittance is made within six months from the date of issuance of Form 15CB.
Can a foreign company file Form 15CA-15CB?
Yes, a foreign company can file Form 15CA-15CB through its authorized signatory in India.
Is Form 15CA-15CB required for the transfer of funds between NRE and NRO accounts?
No, Form 15CA-15CB is not required to transfer funds between NRE and NRO accounts.
Is Form 15CA-15CB required for remittances to Nepal and Bhutan?
No, Form 15CA-15CB is not required for remittances to Nepal and Bhutan.
Is Form 15CA-15CB required for remittances from India to a person holding a Permanent Account Number (PAN) in India?
No, Form 15CA-15CB is not required for remittances from India to a person holding a Permanent Account Number (PAN) in India.
Form 15CA-15CB is required only for remittances made to non-resident or foreign entities. Since a person holding a PAN in India is considered a resident for tax purposes, Form 15CA-15CB is not applicable in such cases.
Can Form 15CA-15CB be filed after the remittance is made?
Form 15CA and 15CB are required to be filed before making a remittance outside India. However, in certain cases, where the remittance is made without filing Form 15CA/15CB, the remitter can apply to the Assessing Officer (AO) for condonation of delay. If the AO is satisfied with the reasons for not filing the forms, they may allow the remitter to file them after the remittance.
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