Form 15CA & 15CB: Your ticket to send money abroad

15CA & 15CB

The income of NRIs can be taxable, but how will the tax department keep a track on payments made abroad? Form 15CA & 15CB is the answer! It is mandatory for anyone to file these forms before remitting payments abroad, if certain conditions prevail.

Form 15CA is a Declaration of Remitter and is considered as a tool for collecting information in lieu of payments which are chargeable for tax in the hands of recipient non-resident of India.

Form 15CB is an alternate channel of obtaining Tax clearance, apart from Certificate from Assessing Officer. The chargeability is ascertained and certified by a Chartered Accountant.

Both Form 15CA and 15CB are to be filed online.

When you don’t need to file Form 15CA and 15CB

  • When remittance does not require RBI approval under Liberalised Remittance Scheme
  • Import below Rs 5,00,000/-
  • List of payments specified (Click to know)

When you don’t need to file Form 15CB

  • When remittance is not chargeable to tax
  • Aggregate of remittances during the financial year does not exceed Rs 5,00,000
  • Order/certificate of lower /no deduction is taken from the Jurisdictional Assessing Officer u/s 195(2), 195(3), 197 of the Income Tax Act,1961.

There are 4 parts of Form 15CA for different kinds of remittances:

Part A: Where the remittance is chargeable to tax under the provisions of the Income Tax Act, 1961 and the remittance or the aggregate of such remittances does not exceed Rs 5 lakh during the financial year.

Part B: Where the remittance is chargeable to tax under the provisions of the Income Tax Act, 1961 and the remittance or the aggregate of such remittances does not exceed Rs 5 lakh during the financial year and an order/certificate u/s 195(2)/ 195(3)/ 197 of Income Tax Act has been obtained from the Assessing Officer.

Part C: Where the remittance is chargeable to tax under the provisions of the Income Tax Act, 1961 and the remittance or the aggregate of such remittances exceeds Rs 5 lakh during the financial year and a certificate in Form 15CB from a Chartered Accountant has been obtained.

Part D: Where the remittance is not chargeable to tax under the provisions of the Income Tax Act-1961 {Other than payments referred to in rule 37BB(3)}, by the person referred to in rule 37BB(2).

Penalty for non filing of Forms 15CA & 15CB is Rs 1 Lakh for each default.

Filling Form 15CB: Information to be required from the client

  • A. Details of Remitter
  1. Remitter’s Name
  2. Remitter’s Address
  3. Remitter’s PAN Number
  4. Principal Place of Business of the Remitter
  5. E-Mail Address and Phone No. Of Remitter
  6. Status of the Remitter (Firm/Company/Other)
  • B. Details of Remittee
  1. Name and Status of the Remittee
  2. Remittee’s Address
  3. Nationality of the Remittee i.e. Place Where Remittance Is Made
  4. Business Portfolio of the Remittee
  5. Principal Place of the Remittance
  • C. Details of the Remittance
  1. Country to Which Remittance Is Made
  2. Currency in Which Remittance Is Made
  3. Amount of Remittance in Indian Currency
  4. Proposed Date of Remittance
  5. Nature of Remittance as Per Agreement (Invoice Copy to Be Asked From Client)
  • D Bank Details of the Remitter
  1. Name of Bank of the Remitter
  2. Name of Branch of the Bank
  3. BSR Code of the Bank
  • E. Others
  1. Father’s Name of the Signing Person
  2. Designation Of The Signing Person

Moneyम्जी can help you out with Form 15CA & 15CB, if you wish to send any remittance abroad. Reach Moneyम्जी at info@moneymji.com for any query.

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