Steps to E-file the Form 15CA and Form 15CB

Introduction

In India, payments to any non-resident individual or a foreign company are subject to tax deduction and taxed under the Income Tax Act. To ensure a seamless transaction, Form 15CA and 15CB must be filed before sending the amount. These forms are essential for processing payments, ensuring transparency, increasing national revenue, and meeting international compliance requirements. In this blog, we’ll discuss the key aspects of applications and procedures for filing the forms.

What is Form 15CA?

Form 15CA is a declaration form that must be filed when making payments to non-resident individuals or foreign companies before remitting the amount. It must be filed before sending the payments.

What is Form 15CB?

Form 15CB is a certificate issued by a Chartered Accountant (CA) for any payments made to non-resident individuals and foreign companies on taxable amount and aggregate payments exceeding Rs. 5 lakhs in a financial year.

It confirms that all provisions of the Double Taxation Avoidance Agreement (DTAA) and the Income Tax Act are satisfied while making the payments.

Applicability of Form 15CA and Form 15CB

Any Individual, Company, Firm, LLP, or Trust can file both the Forms 15 CA and 15CB only if the remittance is taxable and made to a non-resident or a foreign company. Certain conditions must be met for selecting the corresponding form.

1. Form 15 CA

a. Part A:

• Required only if the remittance is taxable and the aggregate remittances in the FY are up to ₹5 lakh

• Royalties, Consulting, Technical, Freelancing, Marketing, and Commissions are applicable

b. Part B: 

• Applicable if the certificate under Section 195(2), 195 (3), or 197 of the IT Act has been obtained from the Assessing Officer

• Salaries, Rent, Interest, and Dividends are subject to this area

c. Part C: 

• Required only if the remittance is taxable and the aggregate remittances in the FY are above ₹5 lakh

• Software, Licensing, Maintenance, Subscription, and Franchise are also covered

d. Part D: 

• Applicable if the remittance is not taxable and covered under a specified exemption list

• It covers Visa, Education, Travel, Medical, Subscription, and Imports

2. Form 15 CB

• Allowed when the aggregate remittances in the FY are taxable and above ₹5 lakhs

• Filed on cases where no certificates from AO under Section 195(2), 195(3), or 197 are received

Note: Remittances under certain RBI purpose codes are exempted from filing both the Forms 15CA & 15CB

How to e-File the Form 15CA?

 Step 1: Log in to the E-filing portal and click on "E-file > Income tax Forms > File Income Tax Forms”

Step 2: You can find the Form 15 CA under ‘Others (Source of Income not relevant)’

Step 3: Now, click on ‘Let’s Get Started’ and select your ‘Mode of Submission’ and also the ‘Financial Year (F.Y)’

Step 4: File your return as per your relevant part (A, B, C, D) in the Form 15CA

Step 5: After filing, ensure all your details are accurate and click on ‘Preview’

Step 6: Users must e-Verify their form using a digital signature certificate (DSC)

Step 7: Your ITR will be successfully filed, and note down your acknowledgement number and transaction ID

Form 15CB?

Step 1: Log in to www.incometax.gov.in 

Step 2: Add your Chartered Accountant (CA) as follows “Authorised Partners > My Chartered Accountant (CA) > Add CA”

Step 3: Enter your CA’s Membership Number and confirm it before filing

Step 4: Now, your CA has been added successfully to your e-Filing A/c

Step 5: Select "E-file > Income tax Forms > File Income Tax Forms > Form 15CB” and click “file now”

Step 6: Users can select any one of the following (Online, Offline/Bulk Upload, manual)

a) Online: Allowed to file the details only on the Online Form

b) Offline/Bulk upload: Download the Offline Utility from the IT Portal and upload the XML/JSON file under the “Bulk Upload” option

c) Manual mode: Solely used to digitize the forms filed manually between 7 June 2021 and 15 August 2021

Step 7: For e-Verification, upload your CA’s DSC and file the forms

Step 8: Download and view your submitted form under the “E-file” Tab

Conclusion:

Form 15CA & 15CB serve as essential tools to ensure these transactions are transparent, tax-compliant, and under RBI/FEMA regulations. Whether you're an individual, a business, or a consultant making payments abroad, understanding and correctly filing these forms helps you avoid penalties and double taxation. PNPC Global assists you in filling out those forms and ensures seamless transactions across countries. Our Professionals will manage the financial operations and boost your business relentlessly.