How to File Form 15CA & 15CB?: A Detailed Guide

Income Tax

According to Section 195 of the Income Tax Act, when an assessee or remitter makes a taxable payment to a non-resident, it is taxable in the hands of the non-resident. Furthermore, if such payments do take place, the Income Tax Department requires assessees to file Form 15CA and 15CB. 

These two forms play the role of informing the authorities whether the tax is paid or not. Given the importance of these forms, it is vital that one learns how to file Form 15CA & 15CB correctly. Before diving into the filing process, let’s know the details regarding 15CA and 15CB.

About Form 15CA & 15CB

Form 15CA

As mentioned above, a non-resident is liable to pay taxes on payments made to them by a resident. However, it is the resident (assessee) who is liable to deduct taxes at source to make tax collection easier. Thus, to report to the authorities that the deduction of tax has taken place on time, remitters have to file Form 15CA. 

The form acts as a declaration providing information on payments that are taxable in the hands of non-residents. It helps the Income Tax Department to track foreign remittances and taxes that are applicable. 

Form 15CB

On top of Form 15CA, one also needs to file Form 15CB, which is a type of certificate issued by a Chartered Accountant. It certifies that tax deduction is correct and complies with the Income Tax Act and Double Taxation Avoidance Agreement. 

One can find the following information regarding Form 15CB:

• Details and nature of payment
• Rate at which TDS took place
• Compliance with Section 195 of the Income Tax Act
• Compliance with Double Taxation Avoidance Agreement

How to File Form 15CA & 15CB?

Once remitters have gathered a basic understanding of Form 15CA and 15CB, they can follow these steps to file the forms:

Form 15CA

Step 1: Visit the official e-filing income tax portal.

Step 2: Log in using your PAN details and password. New users need to register themselves and then log in. 

Step 3: After logging in, click on the ‘e-file’ option on the top navigation bar. From the dropdown menu that appears, select ‘Prepare and Submit Online Form (Other than ITR)’.

Step 4:  From the dropdown list under ‘Form Name’, select Form 15CA, and press continue. 

Step 5: A new page appears on which you need to select the part of the form that applies to the remitter. 

Step 6: Based on the part selected, one has to fill in the requisite details. Some of the common details required are name, address, contact information, remittance, and TDS information. 

Step 7: If one does not want to submit the form at the moment, he/she can select ‘Save Draft’, and do so later. However, if the person is ready to complete the process, he/she can press ‘Submit.’

Step 8: Upon successful filing, a new page will appear with a ‘Success’ message. 

Form 15CB

Step 1: Before filing Form 15CB, a taxpayer needs to add a CA. To do so, they need to log into the e-filing portal and select ‘Add CA’ under ‘My Account’ tab. 

Step 2: Enter the CA’s Membership Number and select 15CB as Form Name. Then, click ‘Submit.’

Step 3: After the successful addition of CA, the CA can now file Form 15CB on behalf of the taxpayer. However, the CA needs to be registered as a ‘Chartered Accountant’ to complete e-filing. 

Step 4: After this, to submit the .xml file, one needs to download Form 15CB from the ‘Downloads’ page. 

Step 5: Select ‘Upload Form’ under the ‘e-file’ option on the main page. Next, enter the assessee’s and CA’s PAN and select the form name as ‘15CB’ and filing type as ‘Original.’ 

Step 6: Upload the .xml file after generating it using the Utility. 

Step 7: Next, upload the Digital Signature File by downloading the DSC Management Utility. 

Step 8: Lastly, to complete the submission, click on ‘Submit.’ 

Also Read: TDS on Dividend: Resident And Non-Resident Investors

When Does One have to File Form 15CA & 15CS?

Apart from a few specific cases, a remitter needs to submit these forms, or a part of them, under the following circumstances: 

• Part D of Form 15CA when the remittance is under the specified exemption limit. 
• Part A of Form 15CA when remittance in a financial year is less than Rs. 5 lakh.
• Part C of Form 15CA and Form 15CB when remittance is more than Rs. 5 lakh. 
• When persons obtain a certificate under Section 195(2) or 195(3) or 197 of the Income Tax Act, and remittance is more than Rs. 5 lakh, they need to submit Part B of Form 15CA. 

Cases in Which Both Form 15CA and 15CB Are Not Required

As per Rule 37BB of Income Tax Rules, there are at least 28 types of foreign remittances for which one does not need to file Form 15CA and 15CB. Some of the common cases are:

• When one makes an advance payment against imports
• Where import is below Rs. 5 lakh 
• If imports are made for diplomatic missions 
• Payments for intermediary trade 
• Personal remittances   

Also Read: Residential Status for Income Tax in India: Meaning & Its Importance

Four Parts of Form 15CA

As mentioned above in the applicability of Form 15CA and 15CB, a remitter needs to file only parts of the former under certain circumstances. The four parts of Form 15CA are as follows:

• Part A: Filed when remittance is below Rs. 5 lakh in a financial year and is taxable as per the Income Tax Act of 1961. 
• Part B: Filed when one obtains a certificate under Section 195(2) or 195(3) or 197 from an Assessing Officer. 
• Part C: Filed when remittance or its aggregate in a financial year is more than Rs. 5 lakh.
• Part D: Filed when remittance is not chargeable to tax as per the Income Tax Act of 1961. 

Documents Required to Issue Form 15CB

When one is issuing Form 15CB, he/she needs to furnish the following documents:

• Copy of remitter’s PAN card
• Remitter’s digital signature
• Copy of invoice based on which remitter made payment
• Details of non-resident’s bank account
• Copy of no PE Declaration from non-resident 

Final Word

In a financial year, many Indian taxpayers make payments to individuals who are non-residents. However, several taxpayers are unaware that they have to deduct taxes before making most of these payments. As per Rule 37BB of Income Tax Rules, certain foreign remittances are chargeable to tax. 

Furthermore, assessees or remitters also have to file Form 15CA & 15CB to validate their tax deductions, and a failure to do so can lead to a hefty penalty. Thus, it is crucial that one learns how to file Form 15CA & 15CB using the steps mentioned above. 

FAQs on how to file Form 15CA & 15CB

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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.