Form 15ca And 15cb - Brief Overview

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Form 15CA and 15CB

Whenever any remittance is required to be made to Non Resident or to foreign banks or foreign company, the bankers usually ask for copies of form 15CA and 15CB from the remitter.

In this writeup, we will try to understand about form 15CA and 15CB and when it is required.

Legal requirement of form 15CA and 15CB

As per rule 37BB of the Income Tax act, 1961, at the time of any payment to any non-resident or foreign company, which exceeds the amount of Rs 500000 ( Chargeable to tax), the remitter has to furnish the details under the form 15CA under the Income-tax act and also has to obtain form 15CB from Chartered Accountant. Nowadays, both form 15CA and 15CB needs to be filed online on the portal of the tax department.

What is form 15 CA?

Form 15CA is a sort of declaration which is filed online by the remitter wherein He states that proper taxes has been deducted at the time of making remittance of money abroad.

What is Form 15CB?

Form 15CB is an online certificate issued by a Practicing Chartered Accountant. It provides a confirmation that at the time of ...
... deduction of taxes, provisions of domestic law and treaty has been taken into consideration.

Components of form 15CA

Form 15CA has 4 parts which needs to be filled as under:

● Part A: Where the aggregate remittance amount doesn’t exceed Rs 5,00,000 during the said financial year

● Part B: Where the aggregate remittance amount do exceeds Rs 5,00,000 during the said financial year and the certificate has been received from the Assessing officer

● Part C: Where the aggregate remittance amount exceeds Rs 5,00,000 during the said financial year and a certificate in form 15CB has been obtained by the accountant

● Part D: Where the remittance is not chargeable to tax under the Income-tax act

Is filing of form 15CA and 15CB mandatory in all the cases?

The answer is NO. In following cases, there is no requirement to file form 15CA and 15CB:

● If the aggregate remittance amount doesn’t exceed Rs 5 lac or
● If the payment is covered under the list of exempted payments where there is no compulsion to file the above-said forms under the Income-tax act.

List of information required for filing form 15CA and 15CB

Normally, following information are required for preparing and uploading form 15CA and 15CB:

 Name and address of the remitter and remittee
 Country to which remittance is paid
 Amount to be paid with the currency in which it has to be paid
 Proposed date of remittance,
 PAN, Address and phone number of remitter,
 Bank and branch of bank of the remitter,
 Remittee’s nationality and remitter’s status,
 Designation of the Signing person.
 Digital Signature
 Income Tax Login and Password

Both the forms can be uploaded by login into the tax department website and filling the necessary details. Once form 15CB is uploaded by CA through his login, the remitter or assessee can view the same and approve and submit.

Thus, form 15CA and 15CB are one of the important documents required by the bankers before permitting remittance of any money outside India. Further, non filing of same may also lead to penalty in the hands of the remitter.
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