+91 7890009002
+91 7890009002
Welcome to our GST consultancy firm! We are a team of dedicated professionals who specialize in providing a wide range of services related to Goods and Services Tax (GST).
Form 15CA and 15CB Filing (AY 2025-26)
Form 15CA and Form 15CB are mandatory declarations under Section 195(6) of the Income Tax Act, 1961, read with Rule 37BB, for reporting foreign remittances or payments to non-residents (individuals not being companies) or foreign companies. These forms ensure that tax deducted at source (TDS) is appropriately applied on taxable remittances, preventing tax evasion and enabling the Income Tax Department to track cross-border transactions. Form 15CA is an online declaration by the remitter (payer in India), while Form 15CB is a certification issued by a Chartered Accountant (CA) verifying the tax compliance.
As of September 1, 2025, there are no major structural changes to these forms for Assessment Year (AY) 2025-26 (Financial Year FY 2024-25). The latest updates include a schema release on August 21, 2025, for related forms, but the core process remains electronic via the Income Tax e-Filing Portal (incometax.gov.in). Filing must occur before the remittance is made, with no fixed deadline but strict pre-remittance compliance. Late or inaccurate filing attracts a penalty of ₹1 lakh under Section 271-I. Banks/authorized dealers require these forms before processing remittances, and they must report them to the Income Tax Department.
E-filing is mandatory since 2021; manual submissions are not accepted except in rare relaxed cases (e.g., temporary COVID-era extensions, none active in 2025). Use Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) for verification. For AY 2025-26, align remittances with updated TDS rates (e.g., 20% for most payments under DTAA, subject to lower/nil certificates under Sections 195(2)/197).
• Applicability: Any resident individual, firm, company, or entity in India making payments/remittances to non-residents or foreign companies, if the sum is chargeable to tax in India (under Sections 5/9 of the IT Act). This includes salary, royalties, fees for technical services, business income, interest, dividends, etc.
• Threshold: Form 15CB is required only if the aggregate remittances exceed ₹5 lakh in FY 2024-25 and are taxable. For amounts ≤ ₹5 lakh (taxable), only Form 15CA (Part A) is needed. Non-taxable remittances use Form 15CA (Part D).
• Exemptions (No Forms Required under Rule 37BB(3)):
o Remittances by individuals not requiring RBI approval (e.g., under Liberalised Remittance Scheme up to USD 250,000/year, if not for taxable purposes).
o Specified payments (33 categories, expanded from 28 in 2016): e.g., personal gifts/donations, foreign travel (personal), medical/education expenses (up to RBI limits), imports of goods, life insurance premiums to foreign insurers, etc. Full list available on the portal.
o Non-taxable under IT Act or DTAA (e.g., capital receipts like loan repayments, if certified).
• Not Applicable: Inward remittances, purely domestic transactions, or payments exempt under treaties without Indian tax liability.
If DTAA applies, obtain Tax Residency Certificate (TRC), Form 10F, and No Permanent Establishment (PE) declaration from the recipient.
• Remittances ≤ ₹5 lakh (aggregate) in the FY (use Form 15CA Part A).
• Order/certificate from Assessing Officer (AO) under Sections 195(2)/195(3)/197 (use Form 15CA Part B).
• Non-taxable remittances (use Form 15CA Part D).
• Exempt categories under Rule 37BB.
Form 15CA has four parts based on remittance nature and amount:
|
Part |
Applicability |
Form 15CB Required? |
Key Details |
|
Part A |
Taxable remittance ≤ ₹5 lakh (aggregate in FY). |
No |
Simple declaration; pre-filled options for common payments. |
|
Part B |
Taxable remittance > ₹5 lakh with AO order/certificate u/s 195(2)/195(3)/197. |
No |
Attach AO order details; for lower/nil TDS. |
|
Part C |
Taxable remittance > ₹5 lakh without AO order. |
Yes (mandatory) |
Pre-fills from Form 15CB ARN; includes TDS computation. |
|
Part D |
Non-taxable remittance (any amount). |
No |
Declaration that payment is not chargeable under IT Act (e.g., capital transactions). |
• For Remitter: PAN/TAN, Aadhaar (for EVC), bank details, remittance agreement/invoice, Form 26AS/AIS for TDS history.
• For Form 15CB: TRC from recipient's country, Form 10F (self-declaration), No PE certificate (if business income), contract/agreement details, financial statements proving taxability.
• General: Proof of tax payment (challan), currency conversion details, RBI purpose code.
Form 15CB must be filed online by a registered CA on the e-Filing Portal before Part C of Form 15CA. It's event-based and generates an Acknowledgement Receipt Number (ARN) for pre-filling Form 15CA.
Tips: CA must examine remittance nature but not document genuineness (per Madras HC ruling, 2022). Use UDIN (Unique Document Identification Number) for authenticity.
File after obtaining Form 15CB (if applicable). Available online/offline (JSON utility).
Offline Mode (for Complex Cases): Download utility > Fill JSON > Upload > e-Verify.
• TDS Rates: As per IT Act (e.g., 10-30% for fees/royalties) or lower under DTAA (claim via TRC/Form 10F). No PE = often 0% for business profits.
• Cess/Surcharge: 4% cess; surcharge if applicable (e.g., 10% for income > ₹50 lakh).
• Payment: Deduct TDS > Deposit via e-Pay Tax (challan 281) > Quote in forms.
• Refunds: Recipient can claim credit in their country; remitter reports in ITR.
• Non-Filing/Inaccurate Info: ₹1 lakh penalty u/s 271-I per failure.
• Bank Rejection: Remittance blocked until compliance.
• Interest: 1-1.5% per month on unpaid TDS u/s 201.
• Prosecution: For willful evasion u/s 276B.
Compliace India | Powered by Technikology.
