Revised rules related to Submission of Form 15CA and Form 15CB
Complying with Form 15CA and Form 15CB is important for making payments to non-residents. This includes deducting tax as per the Income Tax Act or DTAA provisions. Hence, Form 15CA and Form 15CB can be a time-consuming process, requiring documentation and approval from a Chartered Accountant.
The income tax department has revised the rules relating to the preparation & submission of Form 15CA and Form 15CB.
The significant changes are as follows –
- Form 15CA and 15CB which does not require RBI approval will NOT be required to be furnished by an individual for remittance.
- List of payments of specified nature mentioned in Rule 37BB, which do not require submission of Forms 15CA and 15CB, has been expanded from 28 to 33 including payments for imports.
- Form No.15CB will only be required for payments made to non-residents, which are taxable and if the payment exceeds INR 5 lakh.
A person responsible for making a payment to a non-resident or a foreign company has to provide the following details:
When payment made is below Rs 5 lakh: For such payments information is required to be submitted in Part A of Form 15CA
When payment made exceeds Rs 5 lakh:
The following documents are required to be submitted:
- Part B of Form 15CA has to be provided
- Certificate in Form 15CB from an accountant
- Part C of Form 15CA
When the payment made is not chargeable to tax under the Income Tax Act: Part D of Form 15CA is required to be submitted.
In the following cases, no submission of information is required:
- The remittance is made by an individual and it does not require prior approval of Reserve Bank of India [as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000]
- The remittance is of the nature specified in the list below:
Overall list of payments where no forms 15CA and 15CB are required are as follows (Rule 37BB):
| Sl. No. | Nature of Payment |
| 1 | Indian investment abroad -in equity capital (shares) |
| 2 | Indian investment abroad -in debt securities |
| 3 | Indian investment abroad-in branches and wholly owned subsidiaries |
| 4 | Indian investment abroad -in subsidiaries and associates |
| 5 | Indian investment abroad -in real estate |
| 6 | Loans extended to Non-Residents |
| 7 | Advance payment against imports |
| 8 | Payment towards imports-settlement of invoice |
| 9 | Imports by diplomatic missions |
| 10 | Intermediary trade |
| 11 | Imports below Rs.5,00,000-(For use by ECD offices) |
| 12 | Payment- for operating expenses of Indian shipping companies operating abroad. |
| 13 | Operating expenses of Indian Airlines companies operating abroad |
| 14 | Booking of passages abroad -Airlines companies |
| 15 | Remittance towards business travel. |
| 16 | Travel under basic travel quota (BTQ) |
| 17 | Travel for pilgrimage |
| 18 | Travel for medical treatment |
| 19 | Travel for education (including fees, hostel expenses etc.) |
| 20 | Postal Services |
| 21 | Construction of projects abroad by Indian companies including import of goods at project site |
| 22 | Freight insurance – relating to import and export of goods |
| 23 | Payments for maintenance of offices abroad |
| 24 | Maintenance of Indian embassies abroad |
| 25 | Remittances by foreign embassies in India |
| 26 | Remittance by non-residents towards family maintenance and savings |
| 27 | Remittance towards personal gifts and donations |
| 28 | Remittance towards donations to religious and charitable institutions abroad |
| 29 | Remittance towards grants and donations to other Governments and charitable institutions established by the Governments. |
| 30 | Contributions or donations by the Government to international institutions |
| 31 | Remittance towards payment or refund of taxes. |
| 32 | Refunds or rebates or reduction in invoice value on account of exports |
| 33 | Payments by residents for international bidding. |
How To File 15CA And 15CB Online?
To know more about Form 15CA and 15CB in detail and how to file online, click here.
Frequently Asked Questions
About the Author
CA Mohammed S Chokhawala
I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more
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