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How to e-file Form 15CA and Form 15CB?

Last Update Date : May 30, 2019
Estimated Read Time: 9 min

file form 15ca-15cb

When it comes to filing taxes, it is not only individuals who need to ensure all the proper procedures are followed and forms submitted.  Banks and Financial Institutions have rules that must be followed, which helps the income tax department determine the taxable amounts of NRI’s.  Read this guide to know more Form 15CA and Form 15CB, which banks use to report the payments chargeable to tax.

What is Form 15CA & why is it required?

Form 15CA is a declaration of remitter and is used as a tool for collecting information in respect of payments which are chargeable to tax in the hands of recipient non-resident. This form helps Income Tax Department in tracking foreign remittances & their taxability. As per Rule 37BB, it is a duty of authorized dealers/banks to ensure that such forms are received by them from the remitter.

Whether Form 15CA has to be submitted in all cases since the bankers demand it invariably?

Form 15CA needs to be filled only if the remittance is chargeable to tax in India. If remittance/payment is not chargeable to NRI then Form 15CA is not required.

What stand customer can take if Bank Demand Form 15CA but service is not taxable?

In such cases, the possible recourse is to submit a declaration in form of a note to bank stating the nature of remittance and reason as to why it is not chargeable to tax and consequently exempted from the submission of Form 15CA.

What is Form 15CB & why is it required?

  • Chargeability can be ascertained and certified by obtaining a certificate known as Form 15CB from a Chartered Accountant.
  • This certificate has been prescribed under section 195(6) of the Income Tax Act and is an alternate channel of obtaining tax clearance apart from certificate from Assessing Officer.
  • Perusal of Form 15CB makes it clear that there is no condition or exemption to obtain such certificate when the remittance is not chargeable to tax. In fact, this Form 15CB is the Tax Determination Certificate where the Issuer CA examines the remittance having regard to chargeability provisions under section 5 and 9 of Income Tax Act along with provisions of Double Tax Avoidance Agreements with the Recipient’s Residence Country.
  • Therefore, in our opinion, it is advisable to obtain 15CB even in cases where 15CA is not mandated.
  • A penalty of Rs 1,00,000 u/s 271-I is applicable for not obtaining certificates in Form 15CB and Declaration in Form 15CA.
  • It is also in the interest of assessee to have a tax determination in Form 15CB from a CA, since non-resident taxation involves various complex issues and the consequences of non-deduction are severe.

Changes in the requirement of filling the forms effective from 1st April 2016

  • No Form 15CA and 15CB will be required to be furnished by an individual for remittance which do not require RBI approval under its Liberalized Remmittace Scheme (LRS).
  • The list of payments of specified nature under Rule 37 BB where submission of Forms 15CA and 15CB is not required has been expanded from 28 to 33.
  • A CA certificate (Form No. 15CB in this case) will be required to be furnished only in case of payments made to non-residents which are chargeable to tax and the amount of payment during the year exceeds Rs. 5 lakhs.

New list of payments where no Form 15CA / 15CB is required:

Sl. No.Purpose code as per RBINature of payment
1S0001Indian investment abroad – in equity capital (shares)
2S0002Indian investment abroad – in debt securities
3S0003Indian investment abroad – in branches and wholly owned subsidiaries
4S0004Indian investment abroad – in subsidiaries and associates
5S0005Indian investment abroad – in real estate
6S0011Loans extended to Non-Residents
7S0101Advance payment against imports
8S0102Payment towards imports – settlement of invoice
9S0103Imports by diplomatic missions
10S0104Intermediary trade
11S0190Imports below Rs.5,00,000 – (For use by ECD offices)
12SO202Payment for operating expenses of Indian shipping companies operating abroad
13SO208Operating expenses of Indian Airlines companies operating abroad
14S0212Booking of passages abroad – Airlines companies
15S0301Remittance towards business travel
16S0302Travel under basic travel quota (BTQ)
17S0303Travel for pilgrimage
18S0304Travel for medical treatment
19S0305Travel for education (including fees, hostel expenses etc.)
20S0401Postal services
21S0501Construction of projects abroad by Indian companies including import of goods at project site
22S0602Freight insurance – relating to import and export of goods
23S1011Payments for maintenance of offices abroad
24S1201Maintenance of Indian embassies abroad
25S1202Remittances by foreign embassies in India
26S1301Remittance by non-residents towards family maintenance and savings
27S1302Remittance towards personal gifts and donations
28S1303Remittance towards donations to religious and charitable institutions abroad
29S1304Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
30S1305Contributions or donations by the Government to international institutions
31S1306Remittance towards payment or refund of taxes
32S1501Refunds or rebates or reduction in invoice value on account of exports
33S1503Payments by residents for international bidding.

Changes in the forms effective from 1st April 2016

Part B of Form 15CA has been divided into two parts i.e. Part B and Part C of Form 15CA.

Part C reporting strictly based on Form 15CB.

Part D, a new section has been introduced for reporting transactions which are not taxable.

A new form called Form No. 15CC has been prescribed for Quarterly statement to be furnished by an authorized dealer in respect of foreign remittances made by him.

Details to be filled in Form 15CA and 15CB

Form 15CA has 4 parts as mentioned below. Depending on amount and taxability of remittance, specific parts of Form 15CA need to be filled:

PartDescription
Part AIf remittance is taxable and the total value of such remittance or remittances during the Financial Year is less than Rs. 5 lakh.
Part BIf remittance is taxable and the total value of such remittance or remittances during the Financial Year is more than Rs. 5 lakh and an order/ certificate u/s 195(2)/ 195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer.
Part CIf remittance is taxable and the total value of such remittance or remittances during the Financial Year is more than Rs. 5 lakh and a certificate in Form No. 15CB from an accountant as defined in the explanation below sub-section (2) of section 288 has been obtained.
Part DTo be filled up if the remittance is not taxable other than payments referred to in rule 37BB(3) by the person referred to in rule 37BB(2).

The step by step procedure for online filing of Form 15CA is as follows:

Step 1. Go to Income Tax Filing Website (1) and login to your account.

filing form 15ca-1

Login to your account

Step 2. Click on ‘e-File’ tab and select ‘Income Tax Forms’ from the drop down menu.

filling form 15cb-3Step 3. Select “Form 15CA” from the drop down menu and & click on “Continue”.

Select form 15ca

filing form 15ca-5Step 4. Select the type of ‘Form 15CA’ applicable to you from the drop down menu.

select form 15ca-6

filling form 15cb-7

Step 5. Fill the Form 15CA and click on “Submit” to complete the process.

form15ca_screenshot

form15cb_screenshot

Note: It is mandatory to upload Form 15CB prior to filling Part C of Form 15CA. To prefill the details in Part C of Form 15CA, the acknowledgment number of e-Filed Form 15CB should be provided.

After completing the process, you will receive a success message on your screen and a conformation email in your registered email account.

Important Details To Know When Obtaining Form 15CB

 

important details of 15cb

Pre-requisite for filing Form 15CB

Pre-requisite In order to file Form 15CB, taxpayer must Add CA. To add CA, please follow the below steps:

Step 1. Login to e-Filing Portal, navigate to “My Account” tab and select “Add CA” option.

Step 2. Enter the “Membership Number” of the CA, select 15CB as “Form Name” and click on “Submit” button.

Once the taxpayer adds the CA, the CA can file Form 15CB in behalf of the taxpayer.

However, the C.A. must be registered as C.A. on the e-filing portal.

Registration process for Chartered Accountant

Step 1. User should be registered as “Chartered Accountant” in the e-filing portal. If not already registered, user should click on “Register Yourself” in the homepage.

Step 2. Select “Chartered Accountants” under “Tax Professional” and click “Continue”.

Step 3. Enter the mandatory details and complete the registration process.

Filing process of Form 15CB for Chartered Accountant

In order to file Form 15CB, Chartered Accountant must follow the below steps:

Step 1. Go to ( 2 ) and click on “Downloads” tab.

Step 2. Click on “Forms (Other than ITR)” tab and download Excel or Java Utility.

Step 3. Prepare the XML file using the utility.

Step 4. Login to e-Filing portal account & go to “e-File” tab and select “Upload Form” from the drop down menu.

Step 5. Upload form, enter PAN/TAN of assessee, PAN of C.A., select “Form Name” as “15CB”, select “Filing Type” as “Original”. Click on submit once you are done and you will receive a success message and an email will be sent to your registered email ID.

Note: DSC is Mandatory to file Form 15CB.

Steps to Obtain Form 15CB and Where to Upload its Details Client Side

Following are simple steps to get remittance using 15CB:

  1. Check whether payment made comes under Section 195.
  2. Verify all the basic documents and factual documents that you have
  3. Now classify transactions accordingly. Check for taxability as per Section 195 and/or DTAA
  4. If “Nil” or “Lower” rates are applicable on the transactions, apply for the same
  5. Log on to website ( 3 ) Government issued Income Tax site to obtain certificate Form15CB of a CA.
  6. The payer can then upload details in Form 15CA online.

Below is the list of mandatory information required by a client to file a Form 15CA and 15CB

  • Details of Remitter
    • Name of the remitter
    • Address of the remitter
    • PAN of the remitter
    • Principal place of business of the remitter
    • E-Mail address and phone no. of remitter
    • Status of the remitter (firm/company/other)
  • Details of remittee
    • Name and status of the remittee
    • Address of the remittee
    • Country of the remittee (country to which remittance is made)
    • Principal place of the business of the remittee
  • Details of the remittance
    • Country to which remittance is made
    • Currency in which remittance is made
    • Amount of remittance in Indian currency
    • Proposed date of remittance
    • Nature of remittance as per agreement (invoice copy to be asked from client)
  • Bank details of the remitter
    • Name of bank of the remitter
    • Name of branch of the bank
    • BSR Code of the bank
  • Others
    • Father’s name of the signing person
    • Designation of the signing person
  • Documents from the remittee
    • Form 10F duly filled by the authorized person of the remittee.
    • Tax residency certificate from the remittee (tax registration of the country in which remittee is registered).
    • Certificate that the remittee does not have any permanent establishment in India.

This is mandatory if the income is a business income and not chargeable to tax as per DTAA if there is no permanent establishment in India.

Note: This is required only in case of any benefit under DTAA Is Taken, whether by way of lower rate of deduction of tax At Source or no deduction of tax at source as per DTAA.

How can H&R Block help you?

Saving taxes and filing income tax return accurately becomes very easy when you have professional help. This is where we come into the picture. You can either use our intuitive tax filing platform to easily file your tax return or let our tax experts file it for you. We have a team of in-house tax experts who can accurately file your tax returns online while giving you maximum tax benefits.

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CA Shreya Oturkar
Shreya is a tax advisor at H&R Block (India) with intensive experience in SME taxation and audit. She holds an advanced post graduate qualification in accounting and is highly skilled in financial analysis and reporting. Apart from her professional achievements, Shreya is a talented artist with a flair for free-hand sketching!

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