How to File Forms 15CA and 15CB

Form 15CA and 15CB are essential documents in the Indian tax system that facilitate fund transfers to foreign entities. They also play an important role in monitoring cross-border transactions in a bid to prevent illegal fund transfers.

Together, Form 15CA and 15CB facilitate total transparency and tax compliance in foreign transactions. But what is Form 15CA and 15CB, and why do they matter? Read on to find out.

Understanding Form 15CA

Form 15CA is a crucial document that declares payments initiated towards foreign residents or foreign companies. Filling out this form is essential to ensure compliance with tax and prevent fraudulent foreign monetary transfers.

Form 15CA includes the following information:

Purpose of the transaction
Taxability of the transaction
The total amount of the transaction

What is Form 15CB?

Form 15CB is yet another important document in India. The main purpose of this form is to verify the nature of the foreign remittance and to ensure tax compliance for all outward remittances. It helps determine the total taxable income as well.

When are Form 15CA and 15CB Applicable?

Here is the Form 15CA and Form 15CB applicability:

If the amount comes under any exemption list, fill only Part D of the Form 15CA
Fill only Part A of the form if the remittance amount is lower than ₹5 Lakhs in a financial year
Fill only part C and submit Form 15CB if the amount is higher than ₹5 Lakhs in a financial year
Under Section 195 and Section 197 of the Indian Income Tax Act, you are required to submit Part B if the total amount is higher than ₹5 Lakhs in a financial year

Process of Downloading Form 15CA and 15CB

Here is the process for downloading Form 15CA and CB:

Step 1: Visit the Income Tax website at https://incometaxindia.gov.in/Pages/downloads/most-used-forms.aspx
Step 2: Click on the ‘Downloads/Forms’ tab available on the home page
Step 3: Select ‘Income Tax Forms’ from the drop-down menu
Step 4: Click on ‘Form 15CA’ and click on ‘Form 15CB’ to download the forms
Step 5: You may download a PDF version or the fillable version after installing the required file set-up

Process of Filing Form 15CA and 15CB

Check out the process to be followed when filing Form 15CA and 15CB as outlined below:

Process of Filing Form 15CA

Step 1: Log in to your income tax website using your credentials
Step 2: Add the information of your Chartered Accountant if it has not been added yet
Step 3: Choose the ‘eFile’ tab on the homepage and click on ‘Income Tax Returns’

Step 4: Click on ‘File Income Tax Forms’
Step 5: Select ‘Others’ and choose Form 15CA from various forms
Step 6: Choose ‘Instructions Page,’ and click on the ‘Let’s Get Started’ option
Step 7: Now you will find a page ‘Information for payment to Non-Resident’
Step 8: Enter the ‘Filing type’ which is ‘Original or revised’ and click on ‘Continue’ after selecting the year
Step 9: Select various parts applicable in Form 15CA of income tax
Step 10: Fill in the form with the applicable Part- A, B, C, D
Step 11: Finally, you need to verify the information provided in the form with the help of a digital signature certificate (DSC)

Process of Filing Form 15CB

Step 1: Log in to your income tax portal
Step 2: Add the information of your Chartered Accountant if it has not been added yet
Step 3: The Chartered Accountant needs to complete this form
Step 4: The next step includes downloading the Form 15CB Utility by clicking on the hyperlink marked in the corner as ‘Utility’
Step 5: Now, click on 'Upload Form', which you will get in the 'e-File' option
Step 6: You are required to upload some necessary details, such as your PAN, PAN of the chartered accountant, form name (15CB) and filing type (original)
Step 7: Click on 'Submit' for the final submission of Form 15CB

Now that you are aware of both the forms, you should utilise these instruments to properly regulate your foreign transactions. These forms are especially important if you are conducting business operations overseas.

The Form 15CA and 15CB download process is simple. You can get these forms on the official website of India's income tax department using easy-to-follow steps.

Who can file Form 15CB?

Form 15CB has to be filed by a Chartered Accountant (CA) for all outward remittances exceeding ₹5 Lakhs during a specific financial year.

Is there any penalty for not filing Form 15CA and 15CB?

Yes, defaulting on Form 15CA and 15CB attracts a penalty of ₹1 Lakh on each of these forms.

What are the different modes to file Form 15CB?

You can file Form 15CB of income tax using online as well as offline modes. You can submit it online on the e-filings portal from the convenience of your home.