Why do you need to file Form 15CB & 15CA?
- While making payment overseas remitter of funds needs to follow some procedures and rules. These compliances not only bind an individual but banks and financial institutions also need to follow some regulations.
- These forms(Form 15CB & 15CA) help Income tax department in tracking taxable amount of payments made to a Non resident or a Foreign Company.
- As per Section 195 of Income Tax Act, 1961, every person making any payment to a Non resident shall deduct TDS at required rates, if such sums are subject to tax. So, by obtaining Form 15CA & 15CB from remitter Income Tax Department keeps a check on outflow of funds to Non residents.
What is Form 15CA?
- Forms 15CA is an undertaking(declaration) filed by remitter of funds before remitting funds to a Non resident. This form is submitted online. In some cases, this form is accompanied by Form 15CB(Certificate from a Chartered Accountant).
- This form acts as a tool for collecting information for foreign payments which are chargeable to tax as per Income Tax Act,1961.
- This way Form 15CA also keeps a check on both remitter as well as non resident recipient of funds, that the payment was done after paying all the taxes due.
- It is the duty of Banks and Financial Institutions to ask for Form 15CA before approving any overseas payments.
- Even for transfer of funds from NRE(Non resident external) account to NRO(Non resident ordinary) account of same person, form 15CA is required to be filed and submitted to the concerned bank.
Form 15CA consists of 4 parts as explained well with the help of Table:
| PART | Description |
| Part A | If total value remittance or remittances during the financial year does not exceed Rs. 5 Lakh but chargeable to Income tax |
| Part B | If total value remittance or remittances during the financial year exceeds Rs. 5 Lakh and also chargeable to Income tax and an order or certificate u/s 195(2)/195(3)/197 of Income Tax Act has been obtained from the Assessing Officer (NIL rate or Lower rate certificate) |
| Part C | If total value remittance or remittances during the financial year exceeds Rs. 5 Lakh and is also chargeable to Income tax accompanied by a certificate from a Chartered Account in Form 15CB. |
| Part D | If remittance is not chargeable to tax. |
What is Form 15CB?
- Form 15CB is a certificate issued by a Chartered Accountant in India, which certifies payments made to a Non resident or a Foreign Company.
- In Form 15CB a CA certifies the details of payment, TDS Rate, TDS deduction as per Section 195 of Income Act , provisions of DTAA applicable and nature of remittances.
- A Chartered Accountant duly examines the nature of remittances having regard to chargeability under the provisions of Section 5 & Section 9 of Income Tax Act along with DTAA provisions with recipient’s country.
Payments don’t require Form 15CB & 15CA
- Remitter doesn’t need to furnish Form 15CA & 15CB for payments not requiring any RBI Approval.
- Payments specified in List under Rule 37BB do not require above forms.
List of payments requiring no Form 15CA & 15CB as per rule 37BB
| Sl. No. | Purpose code as per RBI | Nature of payment |
| 1 | S0001 | Indian investment abroad – in equity capital (shares) |
| 2 | S0002 | Indian investment abroad – in debt securities |
| 3 | S0003 | Indian investment abroad – in branches and wholly owned subsidiaries |
| 4 | S0004 | Indian investment abroad – in subsidiaries and associates |
| 5 | S0005 | Indian investment abroad – in real estate |
| 6 | S0011 | Loans extended to Non-Residents |
| 7 | S0101 | Advance payment against imports |
| 8 | S0102 | Payment towards imports – settlement of invoice |
| 9 | S0103 | Imports by diplomatic missions |
| 10 | S0104 | Intermediary trade |
| 11 | S0190 | Imports below Rs.5,00,000 – (For use by ECD offices) |
| 12 | SO202 | Payment for operating expenses of Indian shipping companies operating abroad |
| 13 | SO208 | Operating expenses of Indian Airlines companies operating abroad |
| 14 | S0212 | Booking of passages abroad – Airlines companies |
| 15 | S0301 | Remittance towards business travel |
| 16 | S0302 | Travel under basic travel quota (BTQ) |
| 17 | S0303 | Travel for pilgrimage |
| 18 | S0304 | Travel for medical treatment |
| 19 | S0305 | Travel for education (including fees, hostel expenses etc.) |
| 20 | S0401 | Postal services |
| 21 | S0501 | Construction of projects abroad by Indian companies including import of goods at project site |
| 22 | S0602 | Freight insurance – relating to import and export of goods |
| 23 | S1011 | Payments for maintenance of offices abroad |
| 24 | S1201 | Maintenance of Indian embassies abroad |
| 25 | S1202 | Remittances by foreign embassies in India |
| 26 | S1301 | Remittance by non-residents towards family maintenance and savings |
| 27 | S1302 | Remittance towards personal gifts and donations |
| 28 | S1303 | Remittance towards donations to religious and charitable institutions abroad |
| 29 | S1304 | Remittance towards grants and donations to other Governments and charitable institutions established by the Governments |
| 30 | S1305 | Contributions or donations by the Government to international institutions |
| 31 | S1306 | Remittance towards payment or refund of taxes |
| 32 | S1501 | Refunds or rebates or reduction in invoice value on account of exports |
| 33 | S1503 | Payments by residents for international bidding. |
