FORM 15CA & FORM 15CB
Compliance for foreign remittances with CA certification
Form 15CA and 15CB
When a person makes a payment to a non-resident or foreign company, tax may need to be deducted at source (TDS) under the Income Tax Act, 1961.
To ensure that the correct tax is deducted before sending money abroad, Form 15CA and Form 15CB are used.
Form 15CA
● It is a declaration by the remitter (payer) that tax has been deducted (if applicable) on the payment made to a non-resident.
● It is filed online on the Income Tax Department portal.
● This form helps the government track foreign remittances and ensures that taxes on such payments are properly collected.
.
Form 15CB
● It is a certificate issued by a Chartered Accountant (CA).
● The CA verifies the nature of the payment, the applicable tax rate, and tax deduction details under the Income Tax Act or Double Taxation Avoidance Agreement (DTAA).
● It acts as a confirmation that the correct tax has been deducted before the remittance.
When to File Form 15CA and 15CB
| Particulars | Form 15CA Requirement | Form 15CB Requirement | Remarks |
|---|---|---|---|
| Payment not taxable in India (as per Income Tax Act or DTAA) | Not required | Not required | No tax liability, hence no forms needed. |
| Payment taxable in India, but total remittance ≤ ₹5,00,000 during the financial year | Form 15CA – Part A | Not required | Simple declaration by the remitter. |
| Payment taxable in India, total remittance > ₹5,00,000 during the financial year | Form 15CA – Part B | Required | CA certificate (Form 15CB) must be obtained before filing 15CA. |
| Payment taxable in India, but based on order/certificate from AO (u/s 195(2), 195(3), or 197) | Form 15CA – Part C | Not required | AO’s order/certificate overrides the need for CA certificate. |
| Payment not taxable under Income Tax Act and covered by Rule 37BB (specified list) | Form 15CA – Part D | Not required | For certain exempt foreign payments (e.g., imports, travel, etc.). |
