15CA - 15CB Filing

Form 15CA and Form 15CB of Income Tax. These forms are required to ensure that the correct amount of tax is deducted and deposited to the government. Form 15CA is an online declaration you are required to submit before making the payment. Form 15CB is a certificate from a Practicing CA,

Compliance, in itself, often gets people shivering in their boots, thanks to the inherent human tendency to panic whenever anything is submitted for approval or clearance from authorities who most often appear intimidating. However, this article is a humble attempt to put to rest those fears and ensure a smooth process of submission and compliance.

the income tax department has relaxed the requirement of furnishing Form 15CA/15CB electronically on the new e-filing portal www.incometax.gov.in.

What is Form 15CA?

Form 15CA is a form that is required to be filed with the Income tax Department if a resident makes any payment to a non-resident. The Payer require to furnish the details and information as per the provisions of the Income Tax Act. Form 15CA helps the IT department to track foreign remittances and their taxability. It also helps the non-resident to claim credit for the tax deducted in India. Form 15CA has to be submitted online on the e-filing portal of the IT Department.

What is Form 15CB?

Form 15CB is a certificate that verifies that the (TDS) tax deducted at source from the payment made to a non-resident is in accordance with the Income Tax Act and the Double Taxation Avoidance Agreement (DTAA). A Practicing chartered accountant issues it and contains the payment details, the TDS rate, the DTAA provisions, and the compliance with Section 195 of the Income Tax Act. Form 15CB is required to be filed before making any remittance to a non-resident.

Applicability of Form 15CA and Form 15CB

If the amount of remittance is not chargeable to tax, then no forms are required.
If the remittance is covered under a specified exemption list, only Part D of Form 15CA must be submitted.
Where remittance is less than Rs.5 lakh in a particular financial year – Only Form 15CA – Part A to be submitted.
Where remittance exceeds Rs.5 lakh – Form 15CA – Part C and Form 15CB are to be submitted.
Where remittance exceeds Rs.5 lakh and a certificate under Section 195(2)/195 (3)/197 of the Income Tax has been obtained – Form 15CA – Part B is to be submitted.

How many parts of Form 15CA?

Part A
If the remittance is chargeable to tax and its total is not more than ₹ 5 Lakh, then Part A of Form 15CA has to be filled.

Part B
If the remittance exceeds ₹ 5 Lakh and a certificate has been obtained from the Assessing Officer under Section 197/195(2)/195 (3) of the Income Tax.

Part C
If the remittance exceeds ₹ 5 Lakh and is taxable under Income Tax Act, and certificate in form 15CB has been obtained from a chartered accountant.

Part D
If the remittance is covered under a specific exemption, Part D of Form 15CA has to be submitted.

Procedure to File Form 15CA and 15CB Online

Form 15CA

Step-by-Step Process to File Form No.15CA – Part A, B and D (Online mode)

Form No. 15CA is filed electronically on the Income Tax e-filing portal and is verified either using a digital signature or electronic verification code (EVC).

Step 1: Log in to the income tax portal: www.incometax.gov.in

Step 2: Before filing, you are Required to Add your Chartered Accountant

Select the ‘Authorised Partners’ tab, click on ‘My Chartered Accountant (CA) from the drop-down menu
You will be directed to a page ‘My Chartered Accountant(s)’. Click on the ‘Add CA’ option
You will then be prompted to add the ‘Membership Number of the CA’
Click on ‘Add’ and you will be required to give a ‘Confirmation’
A message displaying ‘Request for adding CA has been submitted successfully, it is pending for acceptance by the CA’ will appear

Step 3: Process of E-filing Form No. 15CA

1. Log in to the E-filing portal and go to “E-file” > ‘Income tax Forms’ > ‘File Income Tax Forms’

2. You will be directed to the page ‘File Income Tax Forms’, click on ‘Others (Source of Income not relevant)’ and choose Form No. 15CA. Alternatively, you can also type Form No. 15CA in the search box and locate it

3. Now on the ‘Instructions’ page, click on ‘Let’s Get Started’

4. On the page ‘Information for payment to Non-Resident’, Select ‘Mode of Submission’, and the FY.

5. From Part A, B and C, you are required to select the applicable part in Form No. 15CA. Let’s say,

Part-A

Part A is applicable where remittance is below Rs 5 lakh during a financial year.
You need to enter details of the remitter (sender), remittee (recipient), and remittance (fund transfer details). There is no requirement for Form No. 15CB from a CA. Finally, you will be required to submit the verification

Part-B

Part B is applicable when you have received assessing officer (AO) approval under Section 195(2), 195 (3) or 197.
In Part B as well, you are required to key in details related to remitter, remittee and remittance. The only difference is that you need to provide AO Order details as well. Also, there is no requirement for Form No. 15CB

Part-C

Part C is applicable in cases where the remittance or the aggregate of such remittance exceeds Rs 5 lakh during a financial year, and an accountant’s certificate in Form No. 15CB is required.
In Part C, you would be required to furnish details about the chartered accountant (CA) and related attachments. This is apart from the remittee and remittance details
After filling in all the relevant details, you are required to click on ‘Assign to CA’
Once you click on ‘Yes’ to give your confirmation, a message will come up stating ‘Assigned to the CA successfully’
Go to the Dashboard and click on ‘Pending Actions’
You will be able to see Form No. 15CB, which your CA has uploaded. You can either accept or reject Form No. 15CA
If you click on ‘Accept’, you will be directed to the ‘e-Verify page’. Once you have e-verified Form No. 15CA using DSC or EVC, a message ‘Submitted Successfully’ will pop up

Part-D

Part D is applicable where remittance is not taxable under the ITA, and no withholding tax is required to be deducted.
In Part D, you will be required to key in details about the remitter, which includes name, PAN, remitter status, residential status, contact and address details. In Part D, verification of the person submitting Form No. 15CA is also required. Click on the ‘Save’ option
You need to furnish the details of the remittee. Followed by this, you would need to give the remittance details

6. Finally, ‘Verify’ the details and click on ‘Preview’

7. After cross-checking all the details under ‘Preview’, you are required to e-Verify the form using a digital signature certificate (DSC).

8. Once the e-Verification process is complete, a success message is displayed with a Transaction ID and Acknowledgement Number. You are required to keep a note of the Transaction ID and Acknowledgement Number. A confirmation message will be sent to your email ID and mobile number registered with the income tax e-filing portal

Form 15CB

The “Add CA” requisite has to be completed first.
Under the “Authorised Partners” Tab select My CA & then the “Add CA” option is to be selected.
Here, the Membership Number of the CA has to be entered.
Then Form 15CB has to be assigned.
Since the CA has now been added successfully, the CA may complete the rest of the process himself.
The CA’s user account must be registered on the site as a CA account and not as a regular account.
Under the E-file Tab, select Income Tax Forms >> File Income Tax Forms. Select the ‘Form 15CB’ and click File Now. The Online, Offline/Bulk Upload, and manual Options are available.
The manual mode is for filing only, and it allows for the digitisation of forms that were filed manually between 7 June 2021 and 15 August 2021.
In Offline/Bulk Upload the file is generated from the Offline Utility.
In the Online submit option fill in the required details in online forms Only.
Then proceed to e-verify, upload the DSC of CA & file the forms.
Once Form 15CB has been uploaded and successfully submitted by the CA, it can be viewed and downloaded under the E-file Tab. Select Income Tax Forms and then View Filed Forms both in the CA Login and Assessee Login.

FAQs

What happens if Form 15CA is not filed?

A penalty of Rs. 1 lakh for each default of non-filing forms 15CA/CB will apply. An option for the withdrawal of Form 15CA shall be available before payment. Form 15CA can be withdrawn within 7 days of the online form submission.

Can we file return without CA?

In some cases, CA is mandatory to be assigned, such as filing forms 15CA and 15CB. In case where any payment / aggregate of payments exceeding ₹5 Lakh in a FY, chargeable to income tax is made to a Non-Resident,