Form 15CA is a form that is required to be filed with the Income Tax Department if a resident makes any payment to a non-resident. The Payer is required to furnish the details and information as per the provisions of the Income Tax Act. Form 15CA helps the IT department to track foreign remittances and their taxability. It also helps the non-resident to claim credit for the tax deducted in India. Form 15CA has to be submitted online on the e-filing portal of the IT Department.
Form 15CB is a certificate that verifies that the (TDS) tax deducted at the source from the payment made to a non-resident is in accordance with the Income Tax Act and the Double Taxation Avoidance Agreement (DTAA). It is issued by a practicing Chartered Accountant and contains the payment details, the TDS rate, the DTAA provisions, and the compliance with Section 195 of the Income Tax Act. Form 15CB is required to be filed before making any remittance to a non-resident.
Forms 15CA and 15CB are needed when making foreign remittances under the Income Tax Act, 1961. The selection of the form depends on the type and the amount of remittance. Given below is the applicability of the forms -
Form 15CA
- Form 15CA is applicable for a payment made to a foreign company or a non-resident, irrespective of whether it is subject to tax.
- The remitter can be a resident or non-resident individual, foreign or domestic company.
- As per the provisions of Section 5 of the Income Tax Act, 1961, when the income accrues, arises, is received, or is deemed to accrue, arise, or be received in India, it should be declared in Form 15CA.
When is Form 15CA Not Required?
- Form 15CA is not required when the remittance is made in accordance with the provisions of the specified payment list in Rule 37BB.
- When the individual making the remittance does not require the approval of RBI as per section 5 of the Foreign Exchange Management Act, 1999.
Form 15CB
- In order to make the remittance, Form 15CB should be filed by a Chartered Accountant.
- This form is needed when the remittance to a foreign company or a non-resident should is taxable.
- When the amount of remittance is more than Rs.5 lakhs.
- When there’s no order received from the assessing officer.
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 required if Part A of Form 15CA is to be filed.
- When the remittance made is not for purchasing a foreign asset or to a foreign tour operator and the payment amount does not exceed the limit prescribed by RBI.
- When an individual makes the remittance to pursue education abroad, and the amount does not exceed the limit prescribed by RBI.
- Form 15CB is not required where a certificate from AO has been obtained under sections u/s197 or u/s195(2) / (3).
Form 15CA is separated into 4 parts, and each part has to be submitted based on the different structure of the remittance.
Part A If the remittance is chargeable to tax and its total is not more than ₹ 5 Lakh, then Part A of Form 15CA has to be filled. It is to be filled irrespective of whether the remittance is taxable or not.
Part B If the remittance exceeds ₹ 5 Lakh and a certificate has been obtained from the Assessing Officer under Section 197/195(2)/195 (3) of the Income Tax.
Part C If the remittance exceeds ₹ 5 Lakh and is taxable under Income Tax Act, and certificate in form 15CB has been obtained from a chartered accountant.
Part D If the remittance is covered under a specific exemption, Part D of Form 15CA has to be submitted.
Form 15CA
Form 15CA income tax can be filled by logging in through the Income Tax e-filing portal and verified by electronic verification code(EVC) and digital signature. Before e-filing Form 15CB, you must add your CA under authorized partners menu. This is a one-time appointment to be made every Financial Year.
Process to add chartered accountant:
- First, you must add your Chartered Accountant's membership number. This is a unique identification number issued by ICAI to every CA.
- Select ‘Authorised Partners’ tab, and click ‘My Chartered Accountant from the drop-down menu.
- You will be redirected to a page ‘My Chartered Accountant(s).’ Click on the ‘Add CA’ option.
- You will be prompted to add the ‘Membership Number of the CA.’ You can enter it manually or use the search option to find it in the ICAI database. Ensure you enter the correct number, as it cannot be changed later.
- Click on ‘Add,’ and you will be required to give a ‘Confirmation.’ You can review the details of the CA and click on ‘Confirm’ to proceed.
- A message will display ‘Request for adding CA has been submitted successfully, it is pending for acceptance by the CA.’ The CA will receive an email notification about your request and will have to accept it within 15 days. Once the CA accepts your request, he/she will be added as your authorized partner, and you can view his/her details on the portal.
The process of e-filing Form 15CA income tax
- Log in through the e-filing portal of the Income Tax Department using your PAN and password.
- Go to the e-File tab and select Prepare and Submit Online Form (Other than ITR).
- Select Form No. 15CA from the drop-down menu and enter the assessment year and PAN of the remitter.
- Fill in the details in Part A, B, C, or D of the form as applicable and click on Submit.
- A confirmation screen with a transaction ID and acknowledgment number will appear. You can also download the form as a PDF file for your records.
Form 15CB
Before filing Form 15CB, you must add your CA using the process explained for Form 15CA.
- After adding CA as your authorized partner, Form number 15CB will be entered next.
- After adding the CA, the next steps will be completed by your CA.
- Download From 15CB utility from (.xml file) the download page
- After downloading the .xml file, it can be prepared offline.
- Selecting the “e-File” option, click on the “Upload Form” button, and fill in the below details:
- PAN of the remitter
- PAN of the CA
- Form Name – 15CB
- Filing Type – Original
- Next, the prepared .xml file will be uploaded and generated through Utility.
- The DSC Management Utility needs to be downloaded as well. This is needed in uploading the Digital Signature File for the submission to be complete in all respects.
- Click on the “Submit” button and wait for the Success page.
- View the form:
- Once Form 15CB is uploaded and successfully submitted by the CA, the assessee may log in and view the form right under the “Worklist” tab by selecting the “For Your Information” button.
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