15CA - 15CB Filing

The filing of Forms 15CA and 15CB is required when an Indian resident makes payments to a Non-Resident Indian (NRI) or a foreign entity. These forms help the Income Tax Department track foreign remittances and determine potential tax liabilities.

Here's a breakdown to help you understand the process:

Form 15CA:

• This is a declaration by the person making the remittance (remitter).
• It provides information about payments that are taxable in the hands of the non-resident recipient.
• It's submitted online to the Income Tax Department's e-filing portal before making the remittance.
• Form 15CA has four parts, and the specific part you need to fill depends on the amount of remittance and whether you have obtained any certificate from the Assessing Officer.
  • Part A: For taxable remittances up to ₹5 lakh in a financial year.
  • Part B: For taxable remittances exceeding ₹5 lakh in a financial year, where an order/certificate under sections 195(2), 195(3), or 197 of the Income Tax Act has been obtained from the Assessing Officer.
  • Part C: For taxable remittances exceeding ₹5 lakh in a financial year, where a certificate in Form 15CB from a Chartered Accountant has been obtained.
  • Part D: For remittances that are not chargeable to tax under the Income Tax Act.
• In certain cases, you may need to obtain Form 15CB before you can upload Part C of Form 15CA online.
• Form 15CA is not required for certain transactions, such as when the remittance is made by an individual and does not require prior approval from the Reserve Bank of India (RBI), or for specific types of remittances listed under Rule 37BB.

Form 15CB:

• This is a Tax Determination Certificate issued by a Chartered Accountant (CA) registered in India.
• The CA examines the remittance to determine if it's subject to tax under the Income Tax Act and any applicable Double Taxation Avoidance Agreement (DTAA).
• It certifies details of the payment, the applicable TDS rate, the amount of TDS deducted, and other relevant information.
• Form 15CB is generally required when the remittance or the total of such remittances exceeds ₹5 lakh in a financial year and the payment is taxable in India.
• You need to assign Form 15CA (specifically Part C) to your CA on the income tax e-filing portal so they can upload Form 15CB.
• Once the CA uploads Form 15CB, you (the remitter) need to accept it on the portal before you can submit Part C of Form 15CA.
• Form 15CB is not needed if the remittance is not taxable or if the total remittances during the financial year do not exceed ₹5 lakh.