Form 15CA & 15CB: Complete Details

About Form 15CA & 15CB:

When a person makes a payment outside India there are some compliances that are required to be checked. Any remittances made to the foreign country, attracts implication of taxes. One of them is to file Form 15CA and 15CB as and when necessary.

Form 15CA & 15CB

FORM 15CA:

It is a form to be filed by the remitter or taxpayer declaring the payments which are taxable made outside India.  As per the Section 37BB of the Income Tax Act, 1961 it is mandatory for banks and authorized dealers to receive Form 15CA from the remitter. Since the applicability of stricter rules the banks and the authorized dealers are becoming more vigilant in receiving this form. Also, to make the process easier the Income Tax Department had made it available online so that the remitter can file it as and when required over the net. When payments are below Rs. 500, 000 then Part- A of the Form 15CA is required to be filed. If the payment exceeds Rs. 500, 000 then Part- B or Part- C of the form is to be provided by the remitter.

FORM 15CB:

It is a form that is required to be officially signed by Chartered Accountant. It provides a certification for the rates, the taxes and its kind paid by the remitter is right or not. Form 15CB is important as the details from it are required while filing the Form 15CA. When payments made abroad exceeds the limit of Rs. 500, 000 then Form 15CB is required to be filed and issued as a certificate.

Information required to be provided in the Form 15CA & 15CB:

The information that needs to be furnished in the Form 15CA & 15CB are as follows-

  • Details of the remitter regarding name, address, place of business, PAN details, status, e-mail address and phone number.
  • Bank account details of remitter including the Bank account number, name of bank, branch name, BSR code and IFSC code of the bank.
  • Details of the remittee regarding name, address, place of business, country of residence and status.
  • Details of the remittance related to country where remittance is made, currency in which it is made, amount, date and nature.
  • Other details like designation and father’s name of the person signing.
  • Form 10F duly filled and signed by the remittee,s authorized person.
  • Tax residence certificate from the remittee.
  • Certificate to show that there are no permanent establishments of the remittee in India.

Changes made for submission of Form 15CA and 15CB:

The Income Tax Department has recently updated the rules for filing the both the forms as per the need of taxpayers and time. The new rules relating to submission of Form 15CA and 15CB are-

  • Any payment that doesn’t require RBI approval is not to be filed through the Form 15CA and 15CB by the taxpayer.
  • List of payments specified under Section 37BB of the Income Tax Act, 1962 does not require the above said forms to be filed.
  • If the payments that are taxable been made to non-residents and are exceeding Rs. 500, 000 then only Form 15CB is required to be filed.

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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.