15CA & 15CB Filing
Essential Compliance for Foreign Remittances
If you are an Indian resident making payments to a foreign entity or receiving payments from abroad, it’s crucial to follow the legal requirements under the Income Tax Act, 1961. One of the key compliances is filing Form 15CA and Form 15CB before transferring funds internationally.
What are Form 15CA and 15CB?
Form 15CA
Form 15CA is a declaration by the person making the payment to a non-resident, submitted online to the Income Tax Department. It helps track foreign remittances and ensures proper tax deduction.
Form 15CB
Form 15CB is a certificate issued by a Chartered Accountant (CA), certifying that the payment complies with tax laws and the Double Taxation Avoidance Agreement (DTAA), if applicable. It’s mandatory when payments exceed ₹5 lakh.
- When Are These Forms Applicable?
- When Are These Forms NOT Required?
- Key Sections of Form 15CA
- What Does Form 15CB Include?
- Form 15CA must be filed for all foreign remittances, irrespective of whether tax is deductible or not.
- Form 15CB is required only when the remittance amount exceeds ₹5,00,000 and the payment is taxable.
- If you have received a tax exemption certificate or order from the Assessing Officer, filing Form 15CB may not be necessary.
- Payments listed under Rule 37BB of Income Tax Rules (such as certain imports, Indian investments abroad, diplomatic payments, donations to charitable institutions, etc.).
- Remittances exempted from tax or those below specified limits for education, travel, or foreign asset purchases (as per RBI guidelines).
- When RBI approval is not required under FEMA, 1999.
- Part A: Remittances up to ₹5 lakh (taxable).
- Part B: Remittances over ₹5 lakh with a certificate/order from the Assessing Officer.
- Part C: Remittances over ₹5 lakh requiring Form 15CB.
- Part D: Remittances not chargeable to tax.
- Details of remitter and beneficiary.
- Verification of compliance with Income Tax Act and DTAA.
- CA’s certification that tax provisions are followed.
Penalties for Non-Compliance
Failing to file or late filing of Forms 15CA and 15CB can attract a penalty of ₹10,000 per instance.
Documents & Details Needed to File
- PAN of remitter and beneficiary.
- Amount and purpose of remittance.
- Relevant Income Tax Act sections and DTAA articles.
- Bank details of both parties.
- Chartered Accountant’s certificate (Form 15CB), if applicable.
How to File Forms 15CA and 15CB?
- Get a valid PAN: Mandatory for filing Form 15CA.
- Determine if Form 15CB is needed: Required for taxable remittances above ₹5 lakh.
- Fill Form 15CA online: Enter details of payment, remitter, and remittee.
- Obtain CA certification: For Form 15CB if applicable.
- Submit Forms online: Upload 15CA and 15CB on the Income Tax e-filing portal.
- Receive acknowledgment: Keep the unique reference number for records.
Why Choose The Consulting Crew?
Expert Guidance
Our team of tax experts and Chartered Accountants ensures accurate and timely filing.
Hassle-Free Process
From document collection to submission, we handle everything smoothly.
Stay Compliant
Avoid penalties and legal issues with our up-to-date knowledge of tax laws and RBI regulations.
All-in-One Service
From calculations to submission and corrections.
Personalized Support
Get answers to all your queries from dedicated professionals.
