NRI Banking
Form 15CA and Form 15CB: Complete Guide
You made a great deal on your investments back home, or you simply need some funding for your extravagant expenses. As a Non-Resident Indian, you may encounter these instances where you need funds to be sent to you from India.
Such transfer of funds from your Indian account, which is the Non-Resident Ordinary (NRO) account to your overseas bank account is known as repatriation. In this case, you deal with some legal compliance such as submitting Form A2. It is an application for outward remittance.
Another requirement includes furnishing Form 15CA or 15CB to your bank in India. How does that work and what is the point of it? Let’s understand.
What is Form 15CA?
Form 15CA is a way for the Indian government to ensure that you have dealt with any applicable tax requirements before receiving payments from India. It is a declaration that the remitter will make to remit funds.
The form includes information such as the purpose of remittance, the amount, and the details of the sender and receiver. Depending on the case, you can file the appropriate part. They include Part A, Part B, Part C, and Pard D. They are categorised based on the amount remitted and the taxability.
When do you need Form 15CB?
You will need Form 15CB before uploading Form CA if the remittance exceeds Rs.5 lakhs. This is essentially a certificate from a Chartered Accountant. They check if your remittance complies with the TDS rate, deduction rules according to Income Tax Act, and the DTAA (Double Taxation Avoidance Agreement) guidelines.
Rules for repatriating funds through Form 15CA and 15CB
Rules for Form 15CA
An essential part of filing Form 15CA and 15CB is understanding the common rules to avoid pitfalls.
- The person who remits the amount must be registered with the e-Filing portal.
- File under appropriate sections.
- Part A is when the remittance amount is taxable but is below Rs. 5 lakhs.
- Part B is when the remittance total goes over Rs. 5 lakhs and an assessment officer provides order under sections 195 (2) and (3) along with section 197 of the Income Tax Act.
- Part C is applicable when the aggregate of remittance exceeds Rs. 5 lakhs and you have been certified with 15CB.
- Part D involves remittance that is not taxable under the Income Tax Act, 1961.
- If you choose to withdraw Form 15CA due to discrepancies, the timeline for it is 7 days since the submission.
Rules for Form 15CB
- The Chartered Accountant (CA) who certifies the taxability of your remittance must be registered on the e-Filing portal.
- Their PAN status must display as active.
- They need to hold a valid Digital Signature Certificate.
- You must assign the Form 15CB under Part C to the CA for processing the certification.
- All the details such as the CA’s membership ID, address, firm, etc., must be updated and valid.
How to submit Form 15CA and 15CB?
Here is a simplified process to file Form 15CA online:
- Visit the Income Tax e-filing portal and log in with your user ID and password.
- Once there, you will find the ‘File Income Tax Forms’ option in the ‘Income Tax Forms’ section under the ‘e-File’ menu.
- Select Form 15CA from the available form choices and click on ‘Let’s Get Started’.
- Select the section between Part A, B, C, and D based on the nature of your remittance and its taxability.
- E-Verify the details filled in the form for accuracy and completeness.
- On successful submission, you will get a pop-up message that includes your transaction ID and acknowledgement number.
If you are required to file 15CB, you will go through the steps outlined below:
- You can appoint a CA as per the rules discussed earlier who will file Form 15CB and certify the details.
- Once that is done, you can move on to filing Form 15CA where you select section Part C.
- Here, you can accept or reject Form 15CA.
- On acceptance, you will need to provide additional details and proceed with e-verification. If you reject, you must provide the reason for it.
Note: If you haven’t appointed a CA before filing Form 15CA, you have the option to assign it to a CA on the e-Filing portal.
You can also submit Form 15CA offline through the offline utility for statutory forms where you download the form and upload it once all the details are filled.
Instances where you don’t need to file Form 15CA or 15CB
There are caveats to submission of Form 15CA and 15Cb. Let’s have a look at them:
Exceptions for filing Form 15CA
- If the remittance does not require RBI’s approval in advance.
- If the nature of your remittance is specified under the relevant purposes code that the RBI
- If the remittance is made by an Unit of International financial services centre.
Exceptions for filing Form 15CB
You need not file Form 15CB if your remittance does not qualify under section Part C in 15CA.
Conclusion
Rather than a hiccup, Form 15CA and 15CB come as saviours to ensure you have complied with the tax regulations of India before receiving the remittance amount. Following this crucial step ensures you enjoy your income stress-free and sail through the foreign remittance process.
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