Form 15CA

Introduction:

A person making the remittance (a payment) to a Non-Resident, or a Foreign Company has to submit the form 15CA. This form is submitted online.

E-filing of this form is an initiative for an effective & efficient Information Processing System which would facilitate the Income-tax Department greatly in tracking the foreign remittances accurately and effortlessly. The Financial Institutions are now keeping a Hawkeye on all such transactions and forms prior to the effectiveness of remittance. The revised Taxation Rule, 37BB, binds all the Financial Institutions to furnish Form 15CA to an income-tax authority for further proceedings after receiving it from remitter.

Applicability and parts of Form 15CA

• 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, then only Part D of the Form 15CA is to 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 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 to be submitted.

Parts of Form 15CA

The form is divided into four parts, to be filled based on the scenario that is prevalent at the time. The four parts are:

Part A

To be filled irrespective of whether taxable or not and the remittance or its aggregate does not exceed Rs. 5 lakh in a financial year.

Part B

To be filled when the Certificate under Section 195(2)/195 (3)/197 of the Income Tax Act has been obtained from the Assessing Officer.

Part C

To be filled when the remittance or its aggregate exceeds Rs. 5 lakh in a financial year and that remittance is chargeable to tax.

Part D

Is filled when as per the domestic laws, the remittance is not chargeable to tax.

?Procedure to File Form 15CA and 15CB Online

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).

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

First, you are required to add your Chartered Accountant 

• Select ‘Authorized 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 ‘Add CA’ option
• You will then be prompted to add the ‘Membership Number of the CA’
• Click on ‘Add’ and you would 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

Process of e-filing Form No. 15CA

• Go to the ‘eFile’ tab and select ‘Income Tax Returns’, click on ‘File Income Tax Forms’
• You will be directed to a 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
• Now on the ‘Instructions’ page, click on ‘Let’s Get Started.’
• In the page ‘Information for payment to Non-Resident’, enter the ‘Filing type’, that is ‘Original/Revised’ and select the financial year and click on ‘Continue.’
• From Part A, B and C, you are required to select the applicable part in Form No. 15CA. 
• For example, Part A is applicable where remittance is below Rs 5 lakh during a financial year. 
• Similarly, Part B is applicable when you have received assessing officer (AO) approval under Section 195(2), 195 (3) or 197. 
• On the other hand, Part C is applicable in cases where the remittance or the aggregate of such remittance exceeds Rs 5 lakh during a financial year and a certificate in Form No. 15CB from an accountant required. 
• Finally, Part D is applicable where remittance is not taxable under the ITA and no withholding tax is required to be deducted.

Part-A

• 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 would be required to submit the verification

Part-B

• In Part B as well, you are required to key in detail 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

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 the Form No. 15CA using DSC or EVC, a message ‘Submitted Successfully’ will pop up

Part-D

• In Part D, you will be required to key in detail 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 remittee. Followed by this, you would need to give the remittance details.
• Finally, ‘Verify’ the details and click on ‘Preview.’
• After cross-checking all the details under ‘Preview’, you are required to E-Verify the form using a digital signature certificate (DSC). 
• 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 on your email ID and mobile number registered with the income tax e-filing portal.

Frequently Asked Questions

Is it mandatory to file Form 15CB prior to the filing of Form No. 15CA (Part-C)?

Yes, to prefill the details in Part-C of Form No. 15CA, the Acknowledgement Number of e-Verified Form No. 15CB should be verified.

What types of documents are required while filing of Form No. 15CA?

Invoice, tax residency certificate (TRC), the agreement between the parties and Form No. 10F.

What will happen in case of non-compliance with Form No. 15CA and Form No. 15CB?

In case of contravention, a penalty of Rs 1 lakh can be imposed by the assessing officer (AO).

Who is required to file Form 15CA?

Any person not being a company, who is responsible for paying to a non-resident or a foreign company should furnish such information the required information Form 15CA.

When is the form 15CA not required to be furnished?

The information in Form 15CA is not required to be furnished for the following transactions:

• Remittance made by an individual that does not require prior approval of the RBI.
• Remittance is of the nature specified under the relevant purposes code as per the RBI.