In the course of business, it happens that many payments are made outside India.
When payments are made outside India, there are certain compliances that need to
be followed and tax deduction is required for any amount that is taxable under
the Income Tax Act. The purpose of this compliance is to collect information
regarding payments that are chargeable to tax in the hands of recipient NRIs. An
NRI is required to file Form 15CA and Form 15CB for any payment made outside
India. Form 15CB along with Form 15CA needs to be filed online on the official
website of the Income Tax Department.
What is Form 15CA?
Form 15CA is a declaration made by the remitter stating that he has deducted tax
from any payment made to a non-resident. Form 15 CA needs to be filed by the
remitter - the person making the payment to the NRI or foreign company. It is
also used as a tool to collect information regarding payments that are
chargeable to tax.
Through Form 15 CA, the Income Tax Department keeps track of all foreign
remittances/payments and also their taxability. As per Income Tax Rule 37BB, it
is the responsibility and duty of authorized banks or dealers to ensure that
they receive such forms from the remitter. Income Tax Form 15 must be filed
online in CA Income Tax Department. Also, along with Form 15 CA, 15 CB needs to
be filed with the Income Tax Department. However, Form 15CB must be accompanied
by an accountant's certificate in Form 15CB.
What is Form 15 CB?
While Form 15 CA is a declaration, Form 15 CB is a certificate issued by a
chartered accountant. A Chartered Accountant has to ensure that all the
provisions of the Income Tax Act and Double Taxation Avoidance Agreement are
complied with in respect of tax deduction while making payments.
What is the applicability of Form 15CA and Form 15CB?
Redesigned Form 15 CA and Form 15 CB submission process
- If the remittance amount is not chargeable to tax, no form is required.
- If the remittance is covered under the specified exemption list, only Part D of Form 15CA has to be submitted.
- Where the remittance is less than Rs. 5 lakhs in a particular financial year
- only Form 15CA - Part A is to be submitted.
- Where the remittance is exceeded to Rs. 5 lakh - Form 15CA - Part C and Form 15CB have to be submitted.
- Where the remittance is exceeded to Rs. 5 lakhs and certificate under Section 195(2)/195 (3)/197 of Income Tax has been obtained
- Form 15CA - Part B is to be submitted.
The IT Department has launched a new redesigned submission process for Form 15
CA and Form 15 CB. This decision has been taken based on various responses from
corporates and professionals across India. It is believed that these changes
will simplify the entire Form 15 CA and Form 15 CB filing cycle from form
preparation to submission to verification process. Let's look at the significant
changes in the process.
For multiple filing of Form 15CA/CB, it is no longer mandatory or necessary to
assign the same CA in a particular financial year.
Hence, appointment of Chartered Accountant for Form 15 CB is a one-time activity
for a particular financial year.
A CA can now proceed with Form 15 CB for both the remitee and the remitter
without the need for the taxpayer to fill up Part C of Form 15 CA and submit it
to a Chartered Accountant, after a single assignment is made in a year. Hence,
here the earlier process of multiple acceptance and rejection for each form is
eliminated and the entire process is simplified.
Chartered Accountants can now access Form 15CB directly from IT Forms
functionality for filing instead of work list for action.
The offline/bulk mode of submission process has been enabled from 4th October.
Taxpayer can generate XML files using Java-based offline utility. The offline
utilities are available on the portal in the "Download" section under the
"Income-Tax Forms" page and upload it to the portal for further filing. A new
online process will start soon on the portal.
The process of filling Form 15 CA and 15 CB, if understood properly, is not as
complicated and tedious as it seems. On top of that, the simplification in the
process introduced by the Income Tax Department makes it easier for the taxpayer
to follow the procedures. In addition, it also provides an option to withdraw
Form 15 CA and 15 CB and gives an opportunity to withdraw these forms when
Written By: Ishita Ramani
Email: [email protected]
, Ph no: +91 9643203209