15CA 15CB Filings - Tax Mother

Stay compliant with tax regulations: File your Form 15CA and 15CB now!

Need assistance with Form 15CA and 15CB filings or want to avoid penalties? Contact our experts today!

Get acquainted with Form 15CA and 15CB: A simplified explanation

Form 15CA and Form 15CB are essential forms required to report payments made by residents to non-residents under the Income Tax Act.

Form 15CAA declaration made by the person making payment to a non-resident, stating that tax has been deducted from the payment. It is not required if the remittance/payment to a non-resident is not taxable.
Form 15CBA certificate issued by a Chartered Accountant, certifying compliance with the Double Taxation Avoidance Agreement and Income Tax Act regarding tax deductions for taxable payments exceeding Rs. 5 lakhs.

Effective from April 1, 2016, the rules for Form 15CA and 15CB have been revised. The key changes include:

Exemption from submitting Forms 15CA and 15CB for certain remittances not requiring RBI approval.
Expansion of the list of payments exempt from Form 15CA and 15CB from 28 to 33, including import payments.
Form 15CB is now required for taxable payments exceeding INR 5 lakhs to non-residents.

The applicability of these forms depends on various factors:

No forms required if the remittance is not taxable.
Only Part D of Form 15CA needs to be submitted for remittances covered by specified exemptions.
Form 15CA - Part A is required for remittances below INR 5 lakhs in a financial year.
Form 15CA - Part C and Form 15CB need to be submitted for remittances exceeding INR 5 lakhs.
Form 15CA - Part B is required when a certificate under the Income Tax Act has been obtained.

Step-by-step guide to filing Form 15CA and 15CB

Login to the income tax e-filing portal using valid credentials.
Go to "e-File" > "Income Tax Forms" > "File Income Tax Forms".
Select the desired form (15CA or 15CB) and proceed.
Enter the necessary details and verify the form.
Complete the e-verification process.
After successful verification, a transaction ID and acknowledgment number will be generated.

Be aware of the consequences

Failure to file Form 15CA or 15CB can result in a penalty of Rs. 1 lakh for each default.

What you need to know

Form 15CB is not required for small payments when Part A of Form 15CA is filled.
The list of payments exempt from information submission has been expanded.
An order or certificate from the Assessing Officer or a Chartered Accountant's certificate may be required for other payments.
Form 15CA must be furnished to the authorized dealer before remitting the payment.