Filing Process of Form 15CA and Form 15CB

With the rise of payments and remittances to the foreign countries by taxpayers, the importance to verify whether accurate and applicable taxes have been paid on such remittances is rising too. This is because it becomes extremely difficult for the tax department to collect the taxes on such payments at later stages. To remove this problem the tax department in its guidelines and through the mandated acts states that the taxpayer making a foreign remittance is required to file Form 15CA and Form 15CB. The banks and financial institutions from where the taxpayer is making or transferring the payments are strictly advised to collect the duly filed forms for helping the tax department in gathering all the important details regarding such transactions. To know the filing process for Form 15CA and 15CB, the details regarding the forms must be understood by the taxpayers as well as the banks and institutions.

Filing Process for Form 15CA and 15CB

Form 15CA:

It can be said as a declaration form from the remitter making the remittances. The tax department considers Form 15CA as an important tool for collecting the information about the chargeable taxes on all the remittances in the hands of the non-resident recipient. To track the foreign remittances or payments and determining the nature of tax liability on them, this form is an effective Information Processing System used by the department. The department has also issued a list of remittances made to foreigners that do not require the filing process for Form 15CA and 15CB. These payments have been prescribed in Rule 37BB of the Income Tax Act, 1961.

Form 15CB:

For certain payments or remittances made by the remitter it is important to observe the tax charge ability and ascertain it accurately. For this purpose, the department provides Form 15CB to be filed by a Chartered Accountant on behalf of the taxpayer. This form is a certificate that provides as a proof for the tax liability and payment of the same while making the remittance. Section 195(6) of the Income Tax Act prescribes the Certificate format in Form 15CB. It must be obtained by the taxpayer for a clearance certificate from the Assessing Officer.

Filing process for Form 15CA and 15CB:

Filing Process for Form 15CB is as follows-

  1. Step 1: Start by downloading the utility of Form 15CB from the download page of the department’s portal. Prepare an XML File.
  2. Step 2: Log in to the e-filing. Go to e-File. Upload the Form by entering the PAN or TAN of the taxpayer and PAN of the Chartered Accountant. Select the Form Name as Form 15CB and the Filing Type as Original.
  3. Step 3: Upload the generated XML Format file from the downloaded utility. Upload the generated signature file by using the utility of the Digital Signature Management for the XML file. It is to be noted that for filing process for Form 15CA and 15CB, the Digital Signature Certificate of the taxpayer is mandatory.
  4. Step 4: Form 15CB is uploaded on the e-filing portal of the tax department once the validation is successful. A message of successful uploading is displayed to the applicant.

Filing process for Form 15CA is as follows-

  1. Step 1: Log in to the e-filing portal of the tax department.
  2. Step 2: Go to the e-file menu on the upper left side of the page. Click the ‘Prepare and Submit Online Form’.
  3. Step 3: From the dropdown menu list select ‘Form 15CA’. Click on ‘Continue’.
  4. Step 4: Using the DSC Management Utility under the ‘Downloads’, generate a signature for the zipped file. Upload the signature file generated here.
  5. Step 5: Fill in the mandatory details. Click on ‘Submit’.
  6. Step 6: The user is redirected to the success page once the submission is completed.

In this way the taxpayer or remitter can complete the filing process for Form 15CA and 15CB successfully while making the remittances or payments to the foreign country. It is to be noted that form 15CB is mandatory to be filed for filing the Form 15CA.

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.
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