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 nature, specified in the below list (mentioned in Rule 37BB)
|S. No.||Nature of payment|
|1||Indian investment abroad – in equity capital (shares)|
|2||Indian investment abroad – in debt securities|
|3||Indian investment abroad – in branches and wholly owned subsidiaries|
|4||Indian investment abroad – in subsidiaries and associates|
|5||Indian investment abroad – in real estate|
|6||Loans extended to Non-Residents|
|7||Advance payment against imports|
|8||Payment towards imports – settlement of invoice|
|9||Imports by diplomatic missions|
|11||Imports below Rs.5,00,000 –|
|12||Payment for operating expenses of Indian shipping companies operating abroad|
|13||Operating expenses of Indian Airlines companies operating abroad|
|14||Booking of passages abroad – Airlines companies|
|15||Remittance towards business travel|
|16||Travel under basic travel quota|
|17||Travel for pilgrimage|
|18||Travel for medical treatment|
|19||Travel for education (including fees, hostel expenses etc.)|
|21||Construction of projects abroad by Indian companies including import of goods at project site|
|22||Freight insurance – relating to import and export of goods|
|23||Payments for maintenance of offices abroad|
|24||Maintenance of Indian embassies abroad|
|25||Remittances by foreign embassies in India|
|26||Remittance by non-residents towards family maintenance and savings|
|27||Remittance towards personal gifts and donations|
|28||Remittance towards donations to religious and charitable institutions abroad|
|29||Remittance towards grants and donations to other Governments and charitable institutions established by the Governments|
|30||Contributions or donations by the Government to international institutions|
|31||Remittance towards payment or refund of taxes|
|32||Refunds or rebates or reduction in invoice value on account of exports|
|33||Payments by residents for international bidding|
All forms are required to be filed online in the income tax department’s portal.