Seek help with completing Income Tax Form 15CA and 15CB.
Apply for Form 15CA and 15CB effortlessly. Facilitate overseas payments without the need for physical visits or unnecessary delays. Our streamlined process ensures smooth submission and compliance for foreign remittances. Simply provide the necessary documents, and our team of experts will guide you through filing Form 15CA with ease.
Comprehensive Review and Utilization of Forms 15CA and 15CB
Form 15CA and Form 15CB are related to the process of making payments to non-residents and ensuring compliance with Indian tax regulations. Here's an overview and their applicability:
Form 15CA:
Form 15CA is a declaration of remittance that needs to be filled out electronically by a person making a payment to a non-resident or a foreign company. The purpose of Form 15CA is to collect information about payments that are taxable in India and facilitate the determination of tax liability for non-residents.
Applicability:
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When to file: Form 15CA is required for every payment to a non-resident or a foreign company that exceeds ₹5 lakh in a financial year and is taxable in India.
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Nature of Payments: It covers various types of payments such as royalties, fees for technical services, interest, dividends, salary, etc., which are subject to withholding tax under the Income Tax Act.
Form 15CB:
Form 15CB is a certificate issued by a chartered accountant certifying the details of the payment, the amount of tax deducted at source (TDS), and the compliance with Indian tax laws. This form ensures that the remitter has deducted appropriate taxes before making the payment to the non-resident.
Applicability:
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Requirement: Form 15CB is required for all remittances covered under Form 15CA.
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Certification: It certifies that provisions of the Income Tax Act and the Double Taxation Avoidance Agreement (DTAA), if applicable, have been complied with for the payment being made.
Why Banks ask for Form 15CA/ 15CB for foreign remittance?
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Banks in India ask for Form 15CA and Form 15CB for foreign remittances primarily to ensure compliance with Indian tax laws regarding payments made to non-residents or foreign entities. Here are the key reasons why these forms are required by banks:
1. Verification of Tax Deduction: Form 15CA is a declaration made by the remitter (person making the payment) to the Income Tax Department about the nature and purpose of the remittance. It helps the tax authorities to verify whether appropriate taxes (TDS - Tax Deducted at Source) have been deducted on the payment as per the Income Tax Act, 1961.
2. Certification of Tax Compliance: Form 15CB, issued by a chartered accountant, certifies that the payment made to the non-resident complies with the provisions of the Income Tax Act and the Double Taxation Avoidance Agreement (DTAA), if applicable. It confirms that the remittance does not attract higher withholding tax rates as per the provisions of DTAA.
3. Ensuring Legality and Documentation: By requiring Form 15CA and Form 15CB, banks ensure that the remitter has fulfilled their tax obligations and has proper documentation to support the remittance. This helps in avoiding any potential disputes or legal issues regarding the payment of taxes on foreign remittances.
4. Regulatory Compliance: The Reserve Bank of India (RBI) mandates that banks verify and ensure compliance with applicable tax laws for all foreign remittances. Requiring Form 15CA and Form 15CB helps banks fulfill their regulatory obligations and maintain transparency in cross-border transactions.
5. Prevention of Tax Evasion: These forms serve as a mechanism to prevent tax evasion and ensure that taxes due on payments to non-residents are properly deducted and remitted to the government. It helps in maintaining the integrity of the tax system and prevents misuse of funds for illicit activities.
In essence, banks ask for Form 15CA and Form 15CB to ensure that foreign remittances comply with Indian tax regulations and to mitigate risks associated with non-compliance. It is part of their due diligence to verify the legality and tax implications of cross-border transactions involving payments to non-residents or foreign entities.
What happens if you don’t file Income tax Form 15CA and 15CB?
If a taxpayer neglects to submit Forms 15CA and 15CB prior to transferring funds abroad to a non-resident, they may face penalties as per Section 271 of the Income Tax Act of 1961.
Additionally, penalties will be imposed even if incorrect information is provided.
Moreover, in cases where the taxpayer fails to comply with the submission requirements of Forms 15CA and 15CB, the assessing officer has the authority to impose a penalty of Rs. 1 lakh.
Document Requirement to file Form 15CA and 15CB
1. Digital Signature Certificate
2. Bank Details of the Remitter
3. Tax Residency Certificate
4. Details of the Remitter Including PAN Card, Name, Address, Principal Place of Business, E-Mail Address, Phone Number and the Business Entity Type
5. Details of the Receiver such as:
- Name and Status of the Remittee
- Address of the Remittee
- Country of the Remittee (Country to Which Remittance Is Made)
- Principal Place of the Business of the Remittee
6. Details of the Remittance- for example:
- Country to Which Remittance Is Made
- Currency in Which Remittance Is Made
- Amount of Remittance in Indian Currency
- Proposed Date of Remittance
- Nature of Remittance as Per Agreement
7. Bank Details of the Remitter:
- Name of Bank of the Remitter
- Name of Branch of the Bank
- BSR Code of the Bank
PACKAGES
Form 15CB
₹ 2500​
Plus taxes
​
Required to file when the foreign remittance is above Rs.5 Lakh
Form 15CA and 15CB
₹ 3500​
Plus taxes
​
Require to file when the foreign remittance is above Rs. 5 Lakh
Form 15CA
₹ 1500​
Plus taxes
​
Require to file when the foreign remittance is below Rs.5 Lakh
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