15CA-15CB Filing – Compliance for Foreign Remittances

Suppose you are an Indian resident making payments to a foreign entity or receiving payments from a foreign entity. In that case, it is mandatory to comply with the legal provisions of the Income Tax Act 1961. According to the Act, you must file Form 15CA and Form 15CB with the tax authorities before remitting funds to a foreign entity. Filing these 15 CA and CB Forms can be complex, requiring extensive knowledge of tax laws and regulations.

Form 15CA

Under the Income Tax Act, all payments made by a resident to a non-resident must be disclosed. The goal of tax deduction at source and subsequent reporting is to ensure that taxes are collected on time. Form 15CA is a declaration filed by the person remitting the money in which he states that any payments made to the non-resident have been taxed.

Parts of Form 15CA

The form is divided into four parts, to be filled based on the scenario that is prevalent at the time. The four parts are:

Form 15CB

Form 15CB, however, is not a declaration, but a certificate issued by a Chartered Accountant ensuring that the provisions of the Double Taxation Avoidance Agreement (DTAA) and the Income Tax Act have been complied with in respect of tax deductions while making the payments. It includes the following:

• Details and nature of payment made to a Non-Resident.
• Compliance with Section 195 of the Income Tax Act.
• Rate of TDS deducted.
• Applicability of the Double Taxation Avoidance Agreement.

Applicability of Form 15CA and Form 15CB

• If the amount of remittance is not chargeable to tax, then no forms are required.
• If the remittance is covered under a specified exemption list, only Part D of Form 15CA must be submitted.
• Where remittance is less than Rs.5 lakh in a particular financial year – Only Form 15CA – Part A to be submitted.
• Where remittance exceeds Rs.5 lakh – Form 15CA – Part C and Form 15CB are to be submitted.
• Where remittance exceeds Rs.5 lakh and a certificate under Section 195(2)/195 (3)/197 of the Income Tax has been obtained – Form 15CA – Part B is to be submitted.

Procedure to File Form 15CA Online

Form 15CA

Step-by-Step Process to File Form No.15CA – Part A, B and D (Online mode)

Form No. 15CA is filed electronically on the Income Tax e-filing portal and is verified either using a digital signature or electronic verification code (EVC).

Step 1: Log in to the income tax portal

Step 2: Before filing, you are Required to Add your Chartered Accountant

• Select the ‘Authorised Partners’ tab, click on ‘My Chartered Accountant (CA) from the drop-down menu
• You will be directed to a page ‘My Chartered Accountant(s)’. Click on the ‘Add CA’ option
• You will then be prompted to add the ‘Membership Number of the CA’
• Click on ‘Add’ and you will be required to give a ‘Confirmation’
• A message displaying ‘Request for adding CA has been submitted successfully, it is pending for acceptance by the CA’ will appear

Step 3: Process of E-filing Form No. 15CA

1. Log in to the E-filing portal and go to “E-file” > ‘Income tax Forms’ > ‘File Income Tax Forms’
2. You will be directed to the page ‘File Income Tax Forms’, click on ‘Others (Source of Income not relevant)’ and choose Form No. 15CA. Alternatively, you can also type Form No. 15CA in the search box and locate it
3. Now on the ‘Instructions’ page, click on ‘Let’s Get Started’
4. On the page ‘Information for payment to Non-Resident’, Select ‘Mode of Submission’, and the FY.
5. From Part A, B and C, you are required to select the applicable part in Form No. 15CA. Let’s say,

Part-A

• Part A is applicable where remittance is below Rs 5 lakh during a financial year.
• You need to enter details of the remitter (sender), remittee (recipient), and remittance (fund transfer details). There is no requirement for Form No. 15CB from a CA. Finally, you will be required to submit the verification

Part-B

• Part B is applicable when you have received assessing officer (AO) approval under Section 195(2), 195 (3) or 197.
• In Part B as well, you are required to key in details related to remitter, remittee and remittance. The only difference is that you need to provide AO Order details as well. Also, there is no requirement for Form No. 15CB

Part-C

• Part C is applicable in cases where the remittance or the aggregate of such remittance exceeds Rs 5 lakh during a financial year, and an accountant’s certificate in Form No. 15CB is required.
• In Part C, you would be required to furnish details about the chartered accountant (CA) and related attachments. This is apart from the remittee and remittance details
• After filling in all the relevant details, you are required to click on ‘Assign to CA’
• Once you click on ‘Yes’ to give your confirmation, a message will come up stating ‘Assigned to the CA successfully’
• Go to the Dashboard and click on ‘Pending Actions’
• You will be able to see Form No. 15CB, which your CA has uploaded. You can either accept or reject Form No. 15CA
• If you click on ‘Accept’, you will be directed to the ‘e-Verify page’. Once you have e-verified Form No. 15CA using DSC or EVC, a message ‘Submitted Successfully’ will pop up

Part-D

• Part D is applicable where remittance is not taxable under the ITA, and no withholding tax is required to be deducted.
• In Part D, you will be required to key in details about the remitter, which includes name, PAN, remitter status, residential status, contact and address details. In Part D, verification of the person submitting Form No. 15CA is also required. Click on the ‘Save’ option
• You need to furnish the details of the remittee. Followed by this, you would need to give the remittance details

6. Finally, ‘Verify’ the details and click on ‘Preview’
7. After cross-checking all the details under ‘Preview’, you are required toe-Verify the form using a digital signature certificate (DSC).
8. Once the e-Verification process is complete, a success message is displayed with a Transaction ID and Acknowledgement Number. You are required to keep a note of the Transaction ID and Acknowledgement Number. A confirmation message will be sent to your email ID and mobile number registered with the income tax e-filing portal

Procedure to File Form 15CB Online

Form 15CB

• The “Add CA” requisite has to be completed first.
• Under the “Authorised Partners” Tab select My CA & then the “Add CA” option is to be selected.
• Here, the Membership Number of the CA has to be entered.
• Then Form 15CB has to be assigned.
• Since the CA has now been added successfully, the CA may complete the rest of the process himself.
• The CA’s user account must be registered on the site as a CA account and not as a regular account.
• Under the E-file Tab, select Income Tax Forms >> File Income Tax Forms. Select the ‘Form 15CB’ and click File Now. The Online, Offline/Bulk Upload, and manual Options are available.
• In Offline/Bulk Upload the file is generated from the Offline Utility.
• In the Online submit option fill in the required details in online forms Only.
• Then proceed to e-verify, upload the DSC of CA & file the forms.
• Once Form 15CB has been uploaded and successfully submitted by the CA, it can be viewed and downloaded under the E-file Tab. Select Income Tax Forms and then View Filed Forms both in the CA Login and Assessee Login.

Procedure to File Form 15CA and 15CB Offline/ Bulk Mode

Form 15CA (Offline/Bulk Mode)

Part A and B (Taxpayer)

1. Log in to the e-Filing portal and go to “e-File” > “Income Tax Forms” > “File Form 15CA”.
2. Fill in basic details: PAN/TAN is auto-populated, financial year, filing type and submission mode are to be collected. Both Online, Offline/Bulk Upload & manual Options is there
3. The manual mode is for filing only for digitalization of forms which were filed manually between 7th June 2021 to 15th August 2021 as per Press Release.
4. In Offline/Bulk Upload Download the Offline Utility & after Uploading the Bulk Forms.
5. Online fill in the required details in online forms Only.
6. Then proceed to e-verify. Upload the DSC of the Authorized signatory & File the Forms.
7. Download the Form 15CA Offline Utility: get it from the “Downloads” section on the Income Tax Forms page.
8. Prepare individual XML files for Remitter, Remittee, and CA (only for Part-C). Zip all the XML files. For Part-C: Import the Form 15CB XML submitted by your CA (downloadable from View e-Filed Forms).
9. Upload the zipped file and submit it. You’ll get a Token Number.
10. Check the status of your submission: Go to “e-File” > “View Form 15CA Offline/Bulk”. See if your XMLs were successful (acknowledgement​nt Number generated) or failed (reasons shown).
11. If failed, the Reasons for failure will be displayed. Re-upload the corrected XML with the validations/data fixed. You can download an export showing the ARN number, status, and XML filename for failed files.

Form 15CB (Offline/Bulk Mode):

Appointing your CA:

• Log in to the e-filing portal and go to “My Chartered Accountant(s)” under “Authorised Partners”.
• Add your CA: Provide their membership number and assign Form 15CB. Do this once per financial year.

Part A and B (CA):

• Log in to the e-Filing portal and go to “e-File” > “File Form 15CB”.
• Fill in basic details: User ID, PAN, “Offline/Bulk” submission, and financial year.
• Download the Form 15CB Offline Utility or get it from the “Downloads” section on the Income Tax Forms page.
• Prepare individual XML files for Remitter, Remittee, and CA. Zip the files.
• Upload the zipped file and submit using your Digital Signature Certificate (DSC). You’ll get a Token Number.
• Check the status of your submission: Go to “e-File” > “View Form 15CB Offline/Bulk”. See if your XMLs were successful (acknowledgement Number generated) or failed (reasons shown).
• If failed: Re-upload the corrected XML with validations/data fixed. You can download a PDF of successful submissions and an export showing the ARN number, status, and XML filename for failed files.

*Note: that the procedure for filing Form 15 CA and Form 15CB may vary depending on the specific transaction and other factors.

DisyTaxcan help you file Form 15 CA-CB, from preparation to submission, and ensure that you comply with all the applicable regulations

The submission of forms such as these, in reality, isn’t as complicated and tedious as they are normally believed to be. Moreover, the option of withdrawing the form presents the opportunity to retract the form when necessary.

When is Form 15CB not required?

• Form 15CB is not required when the remittance is not taxable in India.
• If the remittee’s country of residence considers the income taxable and the remittance is sent to that country.
• Form 15CB is not necessary if the total remittances during the fiscal year do not surpass Rs. 5,00,000.
• When an individual makes the remittance and is not for a foreign tour or payment for the purchase of any foreign asset, the amount does not exceed the limit prescribed by the RBI.
• When an individual makes the remittance to pursue education abroad, the amount does not exceed the limit prescribed by the RBI.

Specified payments where Form 15 CA/15CB is not required

As per the latest rules and regulations, the payments where Form 15CA and Form 15CB are not required include the following:

• Indian investment abroad
• Advance payment against imports
• Intermediary trade
• Imports by diplomatic missions
• Loans extended to Non-Residents
• Imports below Rs.5,00,000
• Construction of projects by Indian companies/firms, including import of goods at the project site
• Freight insurance
• Operating expenses of Indian Airlines Firms
• Travel under basic travel quota (BTQ)/ pilgrimage/ medical treatment/business travel/education
• Payment for operating expenses of Indian shipping firm/companies operating abroad
• Payments for maintenance of offices abroad
• Remittances by foreign embassies in India
• Remittance by non-residents toward family maintenance and savings
• Remittance toward donations and personal gifts
• nations to charitable and religious institutions abroad can be remitted.
• Remittances for donations and grants to charitable institutions of foreign governments and governments themselves are permitted.
• Donations or Contributions to international institutions
• Refunds or reduction or rebates in invoice value on account of exports
• Remittance towards payment or refund of taxes
• Payments by residents for international bidding.