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Everything you need to know about Form 15CA and Form 15CB

Every time you have tried to make any remittance outside India, your bank must have asked you to furnish a copy of Form 15CA or 15CB.  Let us understand through this article when are you required to file these forms?
As per the Indian tax law, any person who makes any payment to a non-resident (including a foreign company) in respect of any amount which is chargeable to tax under the Income Tax Act shall be required to furnish Form 15CA.
The information to be furnished is as follows:

  • Information in ‘Part A’ of Form 15CA, if the amount of remittance or the aggregate of the amounts of the remittance made during the financial year does not exceed ₹ 5,00,000 and the remittance is chargeable to tax.
  • Information in ‘Part B’ of Form 15CA, if the amount of remittance or  aggregate of the amounts of remittance made during the financial year exceeds₹ 5,00,000 then the remittance is chargeable to tax and order or certificate is taken under section 195  or 197 from the assessing officer.
  •  Information in ‘Part C’ of Form 15CA, if the amount of remittance or aggregate of the amounts of remittance made during the financial year exceeds ₹ 5,00,000 then the remittance is chargeable to tax and certificate in Form 15CB is taken from a Chartered Accountant.
  • Information in ‘Part D’ of Form 15CA, if the remittance is not chargeable to tax (other than specified remittances where no information to be furnished).

Following are the cases where no information is required to be furnished (when the remittance is not chargeable to income tax):

  • The remittance is made by an individual and it does not require prior approval of Reserve Bank of India.
  • The remittance is in the nature, specified in the below list (mentioned in Rule 37BB)
S. No.Nature of payment
1Indian investment abroad – in equity capital (shares)
2Indian investment abroad – in debt securities
3Indian investment abroad – in branches and wholly owned subsidiaries
4Indian investment abroad – in subsidiaries and associates
5Indian investment abroad – in real estate
6Loans extended to Non-Residents
7Advance payment against imports
8Payment towards imports – settlement of invoice
9Imports by diplomatic missions
10Intermediary trade
11Imports below Rs.5,00,000 –
12Payment for operating expenses of Indian shipping companies operating abroad
13Operating expenses of Indian Airlines companies operating abroad
14Booking of passages abroad – Airlines companies
15Remittance towards business travel
16Travel under basic travel quota
17Travel for pilgrimage
18Travel for medical treatment
19Travel for education (including fees, hostel expenses etc.)
20Postal services
21Construction of projects abroad by Indian companies including import of goods at project site
22Freight insurance – relating to import and export of goods
23Payments for maintenance of offices abroad
24Maintenance of Indian embassies abroad
25Remittances by foreign embassies in India
26Remittance by non-residents towards family maintenance and savings
27Remittance towards personal gifts and donations
28Remittance towards donations to religious and charitable institutions abroad
29Remittance towards grants and donations to other Governments and charitable institutions established by the Governments
30Contributions or donations by the Government to international institutions
31Remittance towards payment or refund of taxes
32Refunds or rebates or reduction in invoice value on account of exports
33Payments by residents for international bidding

All forms are required to be filed online in the income tax department’s portal.

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