Form 15CA and Form 15CB are prescribed under the Income Tax Act. Below are some questions and answers which clears doubts on the requirement of filings of Form 15CA and Form 15CB.
Who is liable to file Form 15CA?
A1. The person responsible for paying to a non-resident, not being a company or to a foreign company, any sum chargeable under the provisions of the Income tax Act, shall furnish Form 15CA to the authorized dealer.
What are different Parts of Form 15CA?
A2. The remitter/taxpayer while filing Form 15CA has to select only one Part out of the fours parts mentioned below depending on the amount of remittance and chargeability of such remittance under the Income Tax Act.
Part A – To be filled up if the remittance is chargeable to tax under the provisions of the Income Tax Act,1961 and the remittance or the aggregate of such remittances as the case may be does not exceeds Rs. five lacs rupees during the financial year.
Part B – To be filled up if the remittance is chargeable to tax under the provisions of the Income Tax Act,1961 and the remittance or aggregate of such remittances, as the case may be, exceeds Rs. five lacs rupees 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. To obtain a certificate under section 197, recipient of income has to file an online application in Form No.13 to the jurisdictional Assessing officer. The Form is filed at website https://www.tdscpc.gov.in/app/login.xhtml. While filing Form No.13, complete details of estimation of income of financial year for which Form 13 has been filed alongwith details of income of previous years and proofs have to be filed.
Part C – To be filled up if the remittance is chargeable to tax under the provisions of the Income Tax Act,1961 and the remittance or the aggregate of such remittances, as the case may be, exceeds Rs. five lacs rupees during the financial year and a certificate in Form No. 15CB from full time practicing Chartered Accountant holding valid certificate of practice has been obtained.
Part D – To be filled up if 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))
Rule 37BB(3) says, no information is required to be furnished under Part D if,-
(i) the remittance is made by an individual and it does not require prior approval of RBI as per the provisions of section 5 of FEMA Act,1999 read with Schedule III to the Foreign Exchange (current account transactions) rules, 2000. The clause is applicable to individuals only and not to any other person. It means if remittance made by any other person i.e. company, firm ,LLP etc. which is not chargeable to tax has to file Form 15CA (Part D) mandatorily; or
(ii) the remittance is of the nature specified in column (3) of the specified list below. It is applicable to all persons i.e. individual, company, firm, LLP etc. and exempt from filing Form 15CA.
| Sl. No. | Purpose code as per RBI | Nature of payment |
| (1) | (2) | (3) |
| 1 | S0001 | Indian investment abroad – in equity capital (shares) |
| 2 | S0002 | Indian investment abroad – in debt securities |
| 3 | S0003 | Indian investment abroad – in branches and wholly owned subsidiaries |
| 4 | S0004 | Indian investment abroad – in subsidiaries and associates |
| 5 | S0005 | Indian investment abroad – in real estate |
| 6 | S0011 | Loans extended to Non-Residents |
| 7 | S0101 | Advance payment against imports |
| 8 | S0102 | Payment towards imports – settlement of invoice |
| 9 | S0103 | Imports by diplomatic missions |
| 10 | S0104 | Intermediary trade |
| 11 | S0190 | Imports below Rs.5,00,000 – (For use by ECD offices) |
| 12 | SO202 | Payment for operating expenses of Indian shipping companies operating abroad |
| 13 | SO208 | Operating expenses of Indian Airlines companies operating abroad |
| 14 | S0212 | Booking of passages abroad – Airlines companies |
| 15 | S0301 | Remittance towards business travel |
| 16 | S0302 | Travel under basic travel quota (BTQ) |
| 17 | S0303 | Travel for pilgrimage |
| 18 | S0304 | Travel for medical treatment |
| 19 | S0305 | Travel for education (including fees, hostel expenses etc.) |
| 20 | S0401 | Postal services |
| 21 | S0501 | Construction of projects abroad by Indian companies including import of goods at project site |
| 22 | S0602 | Freight insurance – relating to import and export of goods |
| 23 | S1011 | Payments for maintenance of offices abroad |
| 24 | S1201 | Maintenance of Indian embassies abroad |
| 25 | S1202 | Remittances by foreign embassies in India |
| 26 | S1301 | Remittance by non-residents towards family maintenance and savings |
| 27 | S1302 | Remittance towards personal gifts and donations |
| 28 | S1303 | Remittance towards donations to religious and charitable institutions abroad |
| 29 | S1304 | Remittance towards grants and donations to other Governments and charitable institutions established by the Governments |
| 30 | S1305 | Contributions or donations by the Government to international institutions |
| 31 | S1306 | Remittance towards payment or refund of taxes |
| 32 | S1501 | Refunds or rebates or reduction in invoice value on account of exports |
| 33 | S1503 | Payments by residents for international bidding. |
Below are the remittances specified under schedule III of FEMA (current account transactions) Rules, 2000 for which individual is not required to file Form 15CA as discussed above. All the below mentioned remittances should be within the limit of USD 2,50,000. Any additional remittance in excess of USD 2,50,000 shall require prior approval of RBI.
(i) Private visits to any country (except Nepal and Bhutan)
(ii) Gift or Donation
(iii) Going abroad for employment
(iv) Emigration
(v) Maintenance of close relatives
(v) Travel for business/conference/specialised training
(vi) Expenses in connection with medical treatment abroad
(vii) Studies abroad
(viii) Expenses for meeting medical expenses/check-up abroad or accompanying as attendant to a patient going abroad for medical treatment/check up
(ix) Any other current account transaction
Form 15CB is required in Part C from a full time practicing Chartered Accountant. Form 15CB is a certificate from a Chartered Accountant to ensure the correct deduction of tax at source and determining the nature of remittance based on the agreements and books of accounts required for the remittance. In Form 15CB, below are the major points of consideration:
(i) Determine correct nature of remittance as per agreement/documents
(ii) Furnish relevant purpose code as per RBI
(iii) Taxability under the provisions of the Income Tax Act,1961
(iv) Applicability of DTAA if any relief is claimed under DTAA
(v) Correct rate of foreign exchange
Under Part C, on the basis of Form 15CB, Form 15CA shall be furnished.
Under Part B, on the basis of order/certificate u/s 195(2)/195(3)/197, Form 15CA shall be furnished.
Also Read: Liberalised Remittance Scheme (LRS) and Income Tax (TCS) implications on LRS
Also Read: Income tax on sale of equity shares or units of mutual funds – Section 112A
Also Read: Exemption on capital gain on transfer of Land, Shares, Securities, Jewellery etc. – Section 54F
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