How to File Form 15CA and Form 15CB Online

Introduction

When someone in India wants to send money abroad, the Indian government wants to keep a tab on the money being sent. This is where Form 15CA and 15CB come in. Filing these forms is important for compliance when sending money abroad. 

These forms may seem complex to a person handling foreign remittances for the first time. In this blog, we will try to understand 15CA/CB forms and their application process better.

What is Form 15CA?

15 CA form is essentially a self-declaration filed by individuals or entities making foreign remittances (i.e. sending money abroad) before sending the money abroad. It states that whatever money is being sent has been appropriately taxed via TDS.  This helps governmental authorities track foreign remittances and ensure such payments are appropriately taxed. 

What is Form 15CB?

Form 15CB on the other hand, is a certificate issued by a Chartered Accountant (CA) stating whether tax needs to be deducted, and if so, by how much. This verifies the accuracy of tax details on foreign remittances and that provisions set by the Income Tax Act, and DTAA agreements have been complied with. This form becomes a necessity for payments made out to non-resident individuals/entities, exceeding 5 Lakh Rupees. 

Applicability and Exemptions of Form 15CA and Form 15CB

Now that we have a basic understanding of the two forms: 15CA and 15CB, let’s look at some of the salient aspects concerning its applicability and the various exceptions surrounding them.

• No forms are required if the remittance is not taxable in India.

• Only Part D of Form 15CA is to be filed if the remittance is covered under a specified exemption list as per RBI or Income Tax Act (for instance, payments for imports, medical treatment abroad, or education fees).

• As mentioned earlier, remittances up to 5 Lakh Rupees are not chargeable to tax, and for such payments, only Part A of Form 15CA (basic details) needs to be submitted.

• If the remittance is over 5 Lakh Rupees, such payments are subject to tax. These payments require Part C of Form 12CA (detailed remittance info) and Form 15CB.

• However, if your remittance is over 5 Lakh rupees but you have already obtained a TDS certificate, only Form 15CA - Part B (with certificate details) is filed.

Applicability and Exemptions of Form 15CA and Form 15CB

Now that we have a basic understanding of the two forms: 15CA and 15CB, let’s look at some of the salient aspects concerning its applicability and the various exceptions surrounding them.

• No forms are required if the remittance is not taxable in India.
• Only Part D of Form 15CA is to be filed if the remittance is covered under a specified exemption list as per RBI or Income Tax Act (for instance, payments for imports, medical treatment abroad, or education fees).
• As mentioned earlier, remittances up to 5 Lakh Rupees are not chargeable to tax, and for such payments, only Part A of Form 15CA (basic details) needs to be submitted.
• If the remittance is over 5 Lakh Rupees, such payments are subject to tax. These payments require Part C of Form 12CA (detailed remittance info) and Form 15CB.
• However, if your remittance is over 5 Lakh rupees but you have already obtained a TDS certificate, only Form 15CA - Part B (with certificate details) is filed.
  

Types of Form 15CA & Their Relevance

In the previous section, we discussed various applicability and exemption rules of these forms. We also mentioned that under certain conditions, only specific parts of Form 15CA will be applicable. But how many parts are there for this form and what do they do? Let’s find out.

Form 15CA is divided into four parts as detailed in the table below:

Documents Required to File Form 15CA and 15CB

Before starting the filing process of these forms, it is essential to know about the documents and details required and to have them ready. Find below a checklist of these documents/details:

For filling the Part A of the form : 

1. Remitter details (payer in India)

1. Name 

2. PAN 

3. Remitter status 

4. Residential status 

5. Contact 

6. Address details 

2. Remittee details (receiver of payment) 

1. Name 

2. Contact 

3. Address details 

3. Remittance details 

1. Amount 

2. Bank details

For filling the Part B of the form: 

The details will be the same as the details required in Part A. In addition to this it will require the Assessing Officer (AO) details like: 

1. Details of the section

2. AO’s name 

3. AO designation

4. Certificate date 

5. Certificate number 

For filling the Part C of the form: 

The details required are the same as the details required in Part A. In addition to this the you need to share the Charted Accountant (CA) details like: 

1. Name of the CA 

2. Name of the proprietorship/firm 

3. Registration number

4. Certificate date and number 

For filling the Part D of the form: 

The details required are the same as the details required in Part A.

Step-by-Step Procedure to File Form 15CA Online

It is important to know that you can fill and submit Form 15CA through both online (through e-Filing portal & offline modes (through offline utility). 

But in this blog, we will be discussing the step-by-step procedure to file Form 15CA - Part A/B/D Online.

• Step 1: Log in to the e-Filing portal using your user ID and password.
• Step 2: On your Dashboard, click e-File - > Income Tax Forms - > File Income Tax Forms
• Step 3: On the File Income Tax Forms page, select the form 15CA.
• Step 4: On the Instructions page, click “Let’s get started”
• Step 5: Upon clicking, Form 15CA will be displayed. Select the applicable section and fill all the required details. Click Proceed
• Step 6: On the preview page, verify the details and click Proceed to e-verify
• Step 7: Click yes to submit
• Step 8: On clicking yes, you will be taken to the e-verify page.

After successful e-verification, you will receive a confirmation message on your email ID and mobile number registered with the portal.

To file form 15CA - Part C:

• Step 1: Choose Part C of the Form.
• Step 2: Select a CA to assign the Form.
• Step 3: Click Yes to submit the Form to CA after filling the relevant details
• Step 4: Once the CA has submitted Form 15CB, you can either Accept or Reject Form 15CA and click submit.
• Step 5: After accepting the form, you will be taken to the e-Verify page. You can verify the Form using DSC or EVC

How to File Form 15CB Online (When You Need a CA)

Form 15CB is a certification that requires a Chartered Accountant for verification of taxability requirements, the correct TDS deduction (if applicable), and verification of documentation. This is necessary to ensure the remitter classifies the payment accurately and avoids tax penalties. 

The step-by-step procedure to file form 15CB is as follows:

• Step 1: Log in to the e-filing portal with valid CA credentials
• Step 2: On your Dashboard, click e-file - > Income Tax Forms - > File Income Tax Forms
• Step 3: On the File Income Tax Forms page, select Form 15CB.
• Step 4: On the Form 15CB page, select the Submission Mode as Online, click the appropriate financial year and click continue.
• Step 5: On the Instructions page, click “Let’s get started”
• Step 6: Enter the PAN of the taxpayer who has assigned the form to CA and click proceed
• Step 7: Fill the required details and click preview
• Step 8: On the preview page, click proceed to e-verify.
• Step 9: Click Yes to submit
• Step 10: On the Unique Document Identification Number page, enter the Unique Document Identification Number.
• Step 11: On clicking proceed, you will be taken to the e-verify page.

After successful e-verification, you will receive a confirmation message on your email ID and mobile number registered with the portal.

Difference Between Form 15CA and Form 15CB

The primary difference between Form 15CA and Form 15CB lies in the fact that Form 15CB mandatorily requires verification (and subsequent signature) from a Chartered Accountant. Other differences between these two forms involve the specific circumstances for which the forms are applicable. It is mandatory to file Form 15CA in every business foreign remittance, while filing form 15 CB depends on the nature of the payment (such as if the remittance value exceeds Rs 5 Lakhs).

Common Errors While Filing & How to Fix

Understandably, filing these forms can be a confusing process. Here are a few common mistakes encountered by individuals during this process, and ways in which you can avoid them.

Mistake 1: Mismatch in Remitter/Remittee Details

Avoid this by double-checking all details with official documents (PAN card, passport, or registration documents)

Mistake 2: Incorrect section selection in Form 15CA

Avoid this by referring to the remittance value and taxability to choose the correct part.

Mistake 3: Missing or Incorrect Form 15CB Upload

Avoid this by ensuring your CA files and digitally signs Form 15CB correctly before you file Part C of Form 15CA

Mistake 4: Wrong Nature of Remittance Code

Avoid this by referring to the RBI’s purpose codes or Annexure in the 15CA/CB instructions.

Conclusion

The Forms 15CA and 15CB are important legal documents designed to ensure that foreign remittances are adequately taxed under the Income Tax Act. While they may seem complex and confusing to file at first, knowing about the correct procedure, prerequisites, and common mistakes can make this process easy. In this blog, we have outlined the ins and outs of these forms and discussed the various applications and exemptions surrounding them. By following this simplified guide, you will be able to tackle foreign remittances with ease and ensure that you are complying with all legal tax requirements.