15CA & 15CB Filing – Compliance for Foreign Remittances

If you are an Indian resident making payments to a foreign entity or receiving funds from abroad, compliance with the Income Tax Act, 1961 is mandatory. Filing Form 15CA and Form 15CB ensures legal compliance before remitting funds internationally. At Taxation Point India, our experts simplify this process, ensuring accurate and timely filings.

Understanding Section 195 of the Income Tax Act

Under Section 195, any individual or entity making payments to a non-resident, including foreign companies, must deduct income tax at the applicable rate before remittance.

• Form 15CA: Declaration of the remittance submitted by the remitter.
• Form 15CB: Certificate issued by a Chartered Accountant (CA) for payments exceeding INR 5 lakh, detailing the nature of payment, applicable tax rate, and tax deducted.

Importance of Form 15CA & 15CB

• Ensures compliance with the Income Tax Act and DTAA provisions.
• Facilitates timely reporting and tax deduction on foreign remittances.
• Helps avoid penalties for non-compliance.
• Form 15CA is a self-declaration; Form 15CB is professional certification by a CA.

Applicability of Forms 15CA & 15CB

Form 15CA is required when:

• Making a remittance to a non-resident or foreign company.
• The remitter is a resident, non-resident, domestic company, or foreign company.
• Income accrues, arises, or is received in India under Section 5 of the Income Tax Act.

Form 15CB is required when:

• The remittance is taxable in India.
• Payment exceeds INR 5 lakh.
• No prior order/certificate has been received from the Assessing Officer.

Situations When 15CA/15CB Is Not Required

• Remittance falls under exempted payments as per Rule 37BB of Income Tax Rules.
• Payment below INR 5 lakh, not related to foreign tours or foreign assets.
• Remittance for education abroad within RBI limits.
• Specified exemptions: Indian investments abroad, advance payments against imports, loans to non-residents, diplomatic imports, charitable contributions, refunds related to exports, and other exempted payments.

Structure of Forms 15CA & 15CB

• Form 15CA Parts:
  • Part A: Taxable remittances up to INR 5 lakh.
  • Part B: Taxable remittances exceeding INR 5 lakh with AO certificate.
  • Part C: Taxable remittances exceeding INR 5 lakh requiring Form 15CB certificate.
  • Part D: Non-taxable remittances under the Income Tax Act.
• Form 15CB Sections:
  • Part A: Remitter & beneficiary details, nature of remittance.
  • Part B: CA verifies compliance with Income Tax Act & DTAA provisions.
  • Part C: CA certifies correctness of information.
  • Annexure: Optional additional details.

Penalty for Non-Filing

Failure to file Form 15CA/15CB, or late filing, may attract a penalty of INR 10,000 per instance.

Documents and Details Required

• PAN of the remitter and beneficiary
• Remittance amount in INR
• Nature and purpose of remittance (e.g., royalty, services, dividends)
• Relevant sections/articles under Income Tax Act & DTAA
• Bank account details of remitter and beneficiary
• Chartered Accountant certificate (Form 15CB) if required

Procedure for Filing 15CA & 15CB

• Obtain PAN: Ensure both remitter and beneficiary have valid PANs.
• Determine Requirement for Form 15CB: Required if remittance exceeds INR 5 lakh.
• Fill Form 15CA online on the Income Tax Department e-filing portal.
• Obtain CA Certification: Secure Form 15CB from a Chartered Accountant if required.
• Submit Forms: Upload Form 15CA and Form 15CB (if applicable) online.
• Receive Acknowledgment: Save acknowledgment with a unique reference number for future reference.

Why Choose Taxation Point India?

• Expert Guidance: Assistance at every step of 15CA/15CB filing.
• Accurate Compliance: Ensuring all statutory requirements are met.
• Hassle-Free Process: From preparation to submission, without errors or delays.
• Post-Filing Support: Assistance with notices or clarifications if required.

Ensure seamless compliance with foreign remittance regulations – file your 15CA & 15CB with Taxation Point India today!
Contact us for expert assistance and timely filing.