written by khatabook | October 25, 2022

What Are Form 15CA and Form 15CB of the Income Tax?

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Table of Content


Individuals are not the only ones required to ensure all necessary and proper steps are taken, and paperwork is completed for filing taxes. The Income Tax Department would have the upper hand when assessing the taxable amounts of non-resident Indians because banks and financial institutions are also assumed to adhere to specified guidelines. This page discusses Income Tax Form 15CA, a form that banks use to record payments that are subject to tax.

Did you know? Form 15CB must be uploaded before Part C of Form 15CA may be filled out. The Acknowledgment number of the electronically filed Form 15CB must be given to prefill the information in Part C of Form 15CA. 

What Is Form 15CA?

Income Tax Form 15CA is a remitter's declaration that is used to gather data on payments that are subject to tax in the hands of a non-resident receiver. The Income Tax Department uses this form to keep track of international remittances and determine if they are taxable. It is the duty of authorised banks or dealers to ensure that they get such paperwork from a remitter per Income Tax Rule 37BB.

Only if the remittances are subject to tax in India must Income Tax Form 15CA be lodged. The Form 15CA does not need to be filed if the remittances or payment are not due to non-resident Indians. To avoid submitting Form 15CA, a customer may, however, provide a statement in the form of a note to the bank outlining the nature of the payment and the justification for why it is not subject to tax.

Form 15CA can be used by any category of taxpayer, Authorized Signatory, and Representative Assessee to provide information on payments made to non-residents who are not companies or foreign companies.

Also Read: TDS Refund: How To Claim TDS Refund

Parts of the Form:

Four components make up Form 15CA:

If a remittance, or the sum of all such remittances, is taxable and does not exceed5 lakh during the financial year, Part A applies.

Part B-If a remittance is taxable, the total of all such remittances throughout the financial year exceeds 5 lakh, and an order or certificate u/s 195(2), 195(3), or 197 has been received from the AO

Part C: If a remittance is taxable, the total of all such remittances throughout the financial year exceeds 5 lakh, and an accountant's certification in Form No. 15CB has been acquired.

If the remittance is not subject to tax, see Part D.

Details Needed to Submit Form 15CA:

The information needed to submit Income Tax Form 15CA is shown below.

  • Information about the sender
  • Identifier of the sender 
  • The location of the sender 
  • The sender's main place of business 
  • PAN for the sender 
  • Email and phone numbers for the sender 
  • The sender's status (firm, corporation, or other)
  • The remittee's name and current status
  • The postal code for the remittee
  • The remittee's main location of business
  • The nation of the remittance (country to which the remittance is made)
  • Information on the Transfer 
  • nation to whom remittances are sent.  
  • Mount was sent back in Indian rupees. 
  • currency used for remittances. 
  • According to the agreement, the remittance's nature (invoice copy to be requested from a client) 
  • Proposed remittance date
  • Bank information for the Remitter 
  • Bank information for the Remitter 
  • name of the remitter's bank 
  • Name of the bank's branch
  • The bank's BSR code
  • Other Information
  • Identification of the signatory
  • The name of the signing party's father
  • needed paperwork for the remittee
  • The authorised individual of the remittee's properly completed Income Tax Form 10F 
  • tax residency certification from the correct remittee/tax registration of the nation in which the remittee is enrolled
  • A certificate demonstrating that the remittee has no permanent establishment in India

If the revenue is considered to be business income and there is no permanent establishment within India, this is considered to be obligatory and not subject to taxation under the DTAA.

Also Read: Income Tax in India: Basics, Slabs and E-filing Process 2022

Procedure to File Form 15CA

When submitting Income Tax Form 15CA on the Income Tax Department's official website, the following processes must be followed:

Step 1: Visit the Income Tax Department's website. 

Step 2: Enter the correct login information to access the relevant account.

Step 3: From the drop-down menu under the e-File tab, choose the Income Tax Forms option.

Step 4: From the drop-down menu, choose Form 15CA, and then click the Continue tab.

Step 5: From the drop-down option, choose the type of Form 15CA that applies to the user.

Step 6: Finish filling out form 15CA by selecting the Submit button.

Modifications for Form 15CA Filing

The modifications made to the Form 15CA filing process are listed below.

If the remittance does not require RBI permission under its Liberalized Remittance Scheme, an individual would not be required to provide Income Tax Form 15CA (LRS).

The number of payments with a special nature under Income Tax Rule 37BB that do not require the submission of Income Tax Form 15CA has increased from 28 to 33.

What Is Form 15CB?

If you must make a taxable payment to a non-resident (who is not a company) or to a foreign company, and if the total of all such payments exceeds ₹5 Lakh in a given fiscal year, you must submit Form 15CB, an accountant's certificate.

How Does Form 15CB Work?

A chartered accountant must sign Form 15 CB in order for it to be valid. This serves as proof that you paid the appropriate rates and taxes. At the time of submitting Form 15CB, some information from Form 15CB is necessary.

If the payment or remittance to the non-resident Indian is not subject to tax, it appears that Form 15CA need not be completed.

According to the Income Tax (Fourteenth Amendment) Rules of 2013, the following types of overseas remittances from October 2013 are not required to be reported on Forms 15CA and 15CB. This is stated in Rule 37BB.

Also Read: Income Tax Assessee: Know More About Concept and Type

Form 15 CA/CB not Needed

The most recent list of payments for which the Income Tax Form 15CA does not need to be given is shown below:

Purpose code as per RBI

Nature of Payment

S0001

Indian investment abroad in equity capital (shares)

S0002

Indian investment abroad in debt securities

S0003

Indian investment abroad in branches and wholly owned subsidiaries

S0004

Indian investment abroad in subsidiaries and associates

S0005

Indian investment abroad in real estate

S0011

Loans extended to non-residents

S0202

payment for operating expenses of Indian shipping companies operating abroad.

S0208

Operating expenses of Indian Airlines companies operating abroad

S0212

Booking of passages abroad-Airlines companies

S0301

remittance towards business travel.

S0302

Travel under a basic travel quota (BTQ)

S0303

Travel for pilgrimage.

S0304

Travel for medical treatment

S0305

Travel for education (including fees, hostel expenses, etc.)

S0401

Postal services

S0501

Construction of projects abroad by Indian companies, including the import of goods at project sites

S0602

Freight insurance—relating to the import and export of goods

S1011

Payments for the maintenance of offices abroad

S1201

Maintenance of Indian embassies abroad

S1 202

Remittances by foreign embassies in India

S1301

Remittance by non-residents towards family maintenance and savings

S1302

Remittance towards personal gifts and donations

S1303

Remittances towards donations to religious and charitable institutions abroad

S1304

remittance towards grants and donations to other governments and charitable institutions established by them.

S1305

Contributions or donations by the government to international institutions

S1306

Remittance towards payment or refund of taxes.

S1501

Refunds or rebates or reduction in invoice value on account of exports

S1503

Payments by residents for international bidding "

Filling Instructions for Form 15CB 

Before sending the remittance, the Form 15CB must be correctly completed, signed, and sent to the Reserve Bank of India or an authorised dealer. The form must be properly filled out and submitted on the Tax Information Network's website (www.tin-nsdl.com). The PAN number and TAN number should be appropriately stated in the form. The form must contain all the necessary information on the remitter, the remittance, and the recipient of the remittance. According to the definition provided by Section 288 of the Income Tax Act of 1961, the accountant shall be selected to handle the form-filling procedure and attestation of the TDS Certificate.

Major Impacts of New Rules on 15 CA and 15 CB

Effective as of October 1, 2013.

  • Form 15CB's applicability is superseded by that of Part A of Form 15CA. Consider the example of tiny payments. 
  • The 28 different payment kinds don't need any information to be entered into the form.
  • A certificate of the Chartered Accountant should be acquired for all other forms of payments, or an order or a certificate of the Assessing Officer under Section 197/195(2) or 195 (3). 
  • The authorised dealer must receive a copy of Form 15CA before the payment is remitted, according to Subrule (2) of the new Rule 37BB.

Also Read: Comparative Income Statement: Examples, Analysis and Format

Online Filing

Both offline and online filing options are available for this form. You can submit Form 15CA in offline mode by using the Offline Utility service. There is no set deadline for submitting this form. It must be submitted before the reimbursement is made.

For this form, either DSC or EVC can be used for e-Verification. If DSC is registered, you must use it for e-Verification. To comprehend the e-Verification procedure step-by-step, see the How to e-Verify user handbook.

Conclusion

Previously, the individual sending money to a non-resident had to provide a certificate in a format that was prescribed by the RBI. The main goal was to collect the taxes at the time of remittance because it would not be feasible to do so at a later time from a non-resident. Therefore, it was suggested to incorporate the e-filling of information into the certificates in order to monitor and trace the transactions in an effective manner.

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FAQs

Q: Describe Form 15CA.

Ans:

Form 15CA, a declaration of remitter, is used to gather data on payments that are subject to tax in the hands of non-resident recipients.

Q: Who needs to submit Form 15CA?

Ans:

According to Rule 37BB, anybody in charge of making payments to a non-resident who is not a company or to a foreign company must include this information in Form 15CA.

Q: Is the submission of Form 15CB required?

Ans:

No, submitting Form 15CB is not required. Form 15CB is an event-based form that needs to be filled out only when a financial year's worth of remittances exceeds 5 lakhs, and you are required to provide a certificate from an accountant as stipulated by Section 288.

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The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.