If you are a law-abiding, tax-paying citizen, you may want to understand the significance of Forms 15CA and 15CB. These forms are crucial for tax compliance when making foreign remittances.

• Form 15CA is a declaration of remittance, serving as a tool for collecting information regarding payments made to non-residents that are taxable in India. It enables the Income Tax Department to track foreign remittances and assess tax liabilities.
• Form 15CB is a certification provided by a Chartered Accountant (CA) confirming the details of the payment, the applicable TDS rate, TDS deduction, and the nature and purpose of the remittance.

When filing Form 15CA, details from Form 15CB may also be required. However, under Rule 37BB of the Income Tax Rules, certain transactions are exempt from requiring Form 15CB.

Applicability of Forms 15CA and 15CB

Form 15CA is required when:

• A remittance is made to a foreign company or a non-resident.
• The remitter can be a foreign company, a domestic company, a resident, or a non-resident.
• The remitted amount is chargeable to tax in India.

Form 15CB is required when:

• The remittance is taxable and made to a foreign company or a non-resident.
• The payment amount exceeds ₹5 lakhs.
• No certificate or exemption order has been obtained from the Assessing Officer.

Filing Process for Forms 15CA and 15CB

The Income Tax Department has streamlined the filing process for these forms to improve clarity and compliance. Here’s a step-by-step guide to filing them:

(a) Filing Process for Form 15CA

1. Visit the Income Tax e-filing portal and log in using valid credentials.
2. Navigate to the Income Tax Forms section.
3. Select Form 15CA from the drop-down list.
4. Choose the relevant part of the form based on the nature of the remittance.
5. Fill in the required details and submit the form.
6. Complete the verification section of the selected part.

Note: If Part C of Form 15CA is applicable, Form 15CB must be uploaded first, as its acknowledgment number is required. If the process seems complex, hiring an expert for 15CA-CB filing is advisable.

(b) Filing Process for Form 15CB

Since only a Chartered Accountant (CA) can file Form 15CB, the following steps must be followed:

1. Visit the Income Tax e-filing portal and go to the Downloads tab.
2. Under the My Account section, add a CA by entering their membership number and selecting Form 15CB.
3. Once the CA is registered, download the Form 15CB Utility from the Downloads page.
4. The CA must prepare the form offline and generate an XML file.
5. Navigate to the e-File tab, select Upload Form, and upload the XML file.
6. Submit the form using a Digital Signature Certificate (DSC).

Upon successful submission, a confirmation email will be sent to the CA.

Revised Rules for Form 15CA and 15CB

The Income Tax Department has updated the rules for submitting these forms:

• Form 15CB is required only when the payment is taxable and exceeds ₹5 lakhs.
• Part A of Form 15CA is required if the payment is below ₹5 lakhs (whether taxable or not).
• Parts B and C of Form 15CA are necessary when the payment exceeds ₹5 lakhs.
• Part D of Form 15CA is used when the payment is not chargeable to tax under the Income Tax Act.

Conclusion

Forms 15CA and 15CB are essential for tax compliance when making foreign remittances. These forms provide the necessary declarations and certifications to banks before processing transactions.

Since tax compliance for foreign remittances can be complex, this guide aims to simplify the process. If you need assistance with filing Forms 15CA and 15CB, feel free to reach out to us at [email protected].