FAQ on Form 15CA & 15CB

Who has to submit Form 15CA and 15CB?

Any resident who proposes to pay any sum to a Non Resident, shall furnish Form 15CA and 15CB. Such money sought to be remitted may or may not be taxable in India.

Why is it required to submit form 15CA and 15CB?

To avoid loss of tax revenue to the government payable by the non-resident recipients who earn part of their incomes in India, Form 15CA is required to be submitted by the remitter and obtain Form 15CB from the Chartered Accountant depending on various thresholds.

Form 15CA and 15CB are submitted to the Income Tax department detailing the nature of the transactions and the tax deducted on such remittance. The remitting bank requires a copy of such forms to release the foreign exchange and to initiate such remittance.

What are different Parts of 15CA?

Part A: To be filled up if the remittance is chargeable to tax and such remittance or the aggregate of such remittances made by the remitter during the year, is less than Rs. 500,000/-.

Part B: To be filled up if the remittance is chargeable to tax and the remittance or the aggregate of such remittances exceeds Rs. 500,000/- and an order from the Income Tax officer is obtained.

Part C: To be filled up if the remittance is chargeable to tax and the remittance or the aggregate of such remittances, exceeds Rs.500,000/- during the Financial Year and certificate in Form No 15CB from a Chartered Accountant has been obtained.

Part D: To be filled up if the remittance is not chargeable to Tax.

Part A, B and C of 15CA are applicable only if the amount sought of be remitted is chargeable to tax in India in the hands of the non-resident recipient.

Part D is required only when such income is not chargeable to tax in the hands of the non-recipient.

What is Form 15CB and when it is required?

Form 15CB is a certificate from a Chartered Accountant and is required when the amount being remitted including the aggregate amounts sent earlier exceeds Rs. 500,000/- and the said amounts are taxable.

How 15CA and 15CB can be submitted?

Only through the digital form in Income Tax Return Website. A copy has to be submitted to the bank which is making the transfer.

If such income of a non-resident are to be taxed in India as well as in his country of residence, at what rate the TDS has to be deducted?

Tax has to be deducted based on the provision of the DTAA entered into with the country of residence of the recipient. However, to avail DTAA benefits, Tax Residency Certificate from the transferee along with Form No. 10F (self declaration) is required.

What are the transactions under the LRS for which RBI approval is not required and therefore 15CA and 15CB is not required?

A resident Individual can avail of foreign exchange facility for certain purposes taken together within the limit of USD 250,000 in a financial year without the prior approval of RBI. These include (i) Private visits to any country (except Nepal and Bhutan)(ii) Gift or donation. (iii) Going abroad for employment (iv) Emigration (v) Maintenance of close relatives abroad (vi) Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment / check-up. (vii) Expenses in connection with medical treatment abroad subject to conditions (viii) Studies abroad subject to conditons etc.

If you want to obtain Form 15CB / file Form 15CA call +91 98494 46110 / [email protected]