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Revised rules related to Submission of Form 15CA and Form 15CB

By Mohammed S Chokhawala

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Updated on: Jul 10th, 2024

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2 min read

When it comes to international remittances, the first thing that comes to mind is Form 15CA and Form 15CB compliance. Most users find it difficult and time-consuming to comply with Forms 15CA and 15CB. Many of them are uninformed of the existing requirements and methods of compliance. As a result, today I'll go over some crucial points about Form 15CA and Form 15CB, as well as the compliance procedure.

The income tax department has revised the rules relating to preparation & submission of Form 15CA and Form 15CB.

The Revised Rules became effective from 1st April 2016. 

The significant changes are as follows –

  • Form 15CA and 15CB which does not require RBI approval will be 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 Rs.5 lakh.

A person responsible for making a payment to a non-resident or to 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:

Following documents is 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 IT 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
1Indian investment abroad -in equity capital (shares)
2Indian investment abroad -in debt securities
3Indian investment abroad-in branches and wholly owned subsidiaries
4Indian investment abroad -in subsidiaries and associates
5Indian investment abroad -in real estate
6Loans extended to Non-Residents
7Advance payment against imports
8Payment towards imports-settlement of invoice
9Imports by diplomatic missions
10Intermediary trade
11Imports below Rs.5,00,000-(For use by ECD offices)
12Payment- for operating expenses of Indian shipping companies operating abroad.
13Operating expenses of Indian Airlines companies operating abroad
14Booking of passages abroad -Airlines companies
15Remittance towards business travel.
16Travel under basic travel quota (BTQ)
17Travel for pilgrimage
18Travel for medical treatment
19Travel for education (including fees, hostel expenses etc.)
20Postal Services
21Construction of projects abroad by Indian companies including import of goods at project site
22Freight insurance – relating to import and export of goods
23Payments for maintenance of offices abroad
24Maintenance of Indian embassies abroad
25Remittances by foreign embassies in India
26Remittance by non-residents towards family maintenance and savings
27Remittance towards personal gifts and donations
28Remittance towards donations to religious and charitable institutions abroad
29Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.
30Contributions or donations by the Government to international institutions
31Remittance towards payment or refund of taxes.
32Refunds or rebates or reduction in invoice value on account of exports
33Payments 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

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.

Which part of Form 15CA do I need to fill?

PART A: Where the remittance or the aggregate of such remittance does not exceed 5 lakh rupees during the F.Y.
PART B: Where remittance or the aggregate of such remittances exceed 5 lakh rupees during the FY and an order / certificate u/s 195(2) / 195(3) /197 of the Act has been obtained from the Assessing Officer.
PART C: Where the remittance or the aggregate of such remittance exceed 5 lakh rupees during the FY and a certificate in Form No 15CB from an accountant has been obtained.
PART D: Where the remittance is not chargeable to tax under the Income Tax Act, 1961.

What are the consequences involved for Non filing of Form 15CA & 15CB?

If an assessee who is required to file Form 15CA  & 15CB fails to furnish the same before making remittance to a non resident, then he has shall be liable to penalty provisions under section 271I of the Income Tax Act, 1961.
Such penal provision shall be attracted even if the person furnished inaccurate information. The amount of penalty which the assessing officer may ask the assessee to pay for Non compliance is Rs.1 lakhs.

Can Filed Form 15CA form 15CB be revised or cancelled?

Yes, Form 15CA can be withdrawn within 7 days from the date of Submission. The link to withdraw the submitted form will be available on the website of the Assessee concerned.

What is the last date of form 15CA and 15CB?

No time limit is prescribed for filing this form. However, it should be filed before the remittance is made.

How much tax do I pay on NRI remittances?

Any remittance to a non-resident person, such as gifts, maintenance of relatives abroad, etc., under LRS would attract TCS at 20%, this can be claimed as tax credit against the income tax payable for that financial year.

Can i withdraw Form 15CA

Yes, Form 15CA can be withdrawn within 7 days from the date of submission.

Is there any time limit to file Form 15CA?

There is no time limit prescribed for filing Form 15CA. However, it should be filed before the remittance is made.

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About the Author

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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