15CA-15CB Filing.

15CA-15CB Filing – Compliance for Foreign Remittances 🇮🇳🌍

If you are an Indian resident making payments to a foreign entity or receiving funds from abroad, complying with the Income Tax Act, 1961 is mandatory. Under this law, Form 15CA and Form 15CB must be filed with the tax authorities before remitting any funds overseas.

Filing these forms can be complex due to extensive tax laws and regulations. India Fills offers expert assistance to navigate the entire process smoothly, ensuring hassle-free compliance.

Section 195 of the Income Tax Act, 1961 📜

According to Section 195, any individual or entity making payments to a non-resident (including foreign companies) must deduct tax at source at the applicable rate before making the payment.

• The remitter must submit Form 15CA, declaring the details of payment to the non-resident.
• For payments exceeding ₹5 lakh, a certificate in Form 15CB from a Chartered Accountant (CA) is mandatory. This certificate confirms the nature of payment, tax rate applied, and tax deducted.

Importance of Form 15CA and Form 15CB ✅

• Form 15CA: A declaration by the payer about the remittance to a non-resident.
• Form 15CB: A CA-issued certificate ensuring compliance with the Income Tax Act and any Double Taxation Avoidance Agreement (DTAA).

Both forms ensure timely, accurate reporting of foreign payments and proper tax collection.

What is Form 15CA? 📝

Form 15CA is an online declaration submitted on the Income Tax Department’s portal before making any remittance to a non-resident. It helps the department track foreign payments and verify that taxes are appropriately deducted.

What is Form 15CB? 🧾

Form 15CB is a certificate issued by a Chartered Accountant under Section 195(6) of the Income Tax Act, verifying that the remittance complies with tax laws and DTAA provisions.

Applicability of Form 15CA and 15CB 🏷️

When is Form 15CA required?

• Any remitter making payments to a non-resident or foreign company, regardless of taxability.
• Remitters can be residents, non-residents, domestic companies, or foreign companies.
• Income must accrue, arise, or be received in India under Section 5 of the Income Tax Act.

When is Form 15CB required?

• For remittances exceeding ₹5 lakh.
• When the remittance is taxable under Indian laws.
• When no certificate/order from the Assessing Officer is received.

When is Form 15CA NOT required? ❌

• Remittances specified under Rule 37BB of the Income Tax Rules.
• When RBI approval is not required as per FEMA, 1999.
• Remittances exempt under Income Tax Act or applicable tax treaties.
• Individual remittances below ₹5 lakh during the financial year (except for foreign tours or purchase of foreign assets).
• Education-related remittances within RBI prescribed limits.

When is Form 15CB NOT required? ❌

• If the remittance is not taxable in India.
• If the income is taxable in the remittee’s resident country.
• If total remittances during the fiscal year do not exceed ₹5 lakh.
• Education remittances and foreign tour payments within RBI limits.

Specified Payments Where Form 15CA/15CB Is Not Required 🚫

• Indian investments abroad
• Advance payments against imports
• Intermediary trade
• Imports below ₹5 lakh
• Loans extended to non-residents
• Freight, insurance, and operating expenses of Indian airlines/shipping abroad
• Travel under Basic Travel Quota (BTQ) for pilgrimage, education, medical treatment, business travel
• Donations to charitable and religious institutions abroad
• Refunds or rebates on export invoices
• Payments for international bidding and tax refunds

Structure of Form 15CA and Form 15CB 📄

Form 15CA parts:

• Part A: Taxable remittances up to ₹5 lakh in the financial year.
• Part B: Taxable remittances above ₹5 lakh with AO certificate/order.
• Part C: Taxable remittances above ₹5 lakh requiring CA certificate (Form 15CB).
• Part D: Remittances not chargeable to tax.

Form 15CB parts:

• Part A: Remitter, beneficiary, and remittance details.
• Part B: CA verification of Income Tax Act and DTAA compliance.
• Part C: CA certification of correctness.
• Annexure: Optional for additional information.

Penalty for Non-Filing or Late Filing ⚠️

Failure to file or late filing of Form 15CA/15CB can attract a penalty of ₹10,000 per instance.

Details Required for Filing 🗂️

• PAN of remitter and beneficiary
• Remittance amount (in INR)
• Nature and purpose of remittance (e.g., services, royalty, dividends)
• Relevant sections/articles of Income Tax Act and DTAA
• Bank details of remitter and beneficiary
• Chartered Accountant certificate details (if Form 15CB is needed)

Step-by-Step Procedure for Filing Form 15CA & 15CB 🛠️

1. Obtain PAN: Ensure valid PAN of remitter.
2. Determine if Form 15CB is needed: For remittances over ₹5 lakh, obtain CA certification.
3. Fill Form 15CA online: Provide remitter, remittee, remittance details.
4. Get CA Certification (Form 15CB): If applicable, get the CA certificate.
5. Upload forms: Submit Form 15CA (and 15CB if needed) on the Income Tax e-filing portal.
6. Receive acknowledgment: Save the acknowledgment number for records.

How India Fills Can Help You 🧑‍💼

India Fills provides end-to-end assistance in filing Form 15CA and 15CB, from documentation and CA certification to online submission. Our experts ensure your foreign remittance compliance is accurate, timely, and hassle-free.