What is Form 15CB?

Any payment or aggregate of payments exceeding Rs 5 lakhs in a fiscal year are subject to income tax and are made to a non-resident, individual, or foreign company. Form 15CB is a certificate that is issued by a Chartered Accountant (CA) in situations where a CA verifies that the provisions of the Income Tax Act, DTAA (Double Taxation Avoidance Agreement), Details and nature of payments, Compliance with Section 195 of the Income-tax Act, Rate of TDS deducted, and other relevant regulations have duly complied with the regulations of the Income Tax Act,1961.

Important points to consider about Form 15CB: 

• Form 15CA 15CB must be obtained from a CA before the remitter can submit Form 15CA. This form is used to verify the information provided in Form 15CA.
• When determining the appropriate tax treatment for the remittance, the CA examines the necessary documents, invoices, and agreements, along with the rules of the DTAA.
• For remittances that are required to be approved by the Reserve Bank of India (RBI) or that do not fall within the categories of tax exemption, Form 15CB is a necessary document that is issued in an established format.

Documents required for Form 15CB

• Invoice or Agreement: The invoice or agreement related to the foreign remittance, which outlines the nature of the payment and the contractual terms, must be provided.
• Tax Residency Certificate (TRC): A TRC issued by the remittee's tax authorities is required to avail of the benefits under the Double Taxation Avoidance Agreement (DTAA) between India and the country where the remittee is a tax resident.
• Form 10F: If the remittee claims the benefit of a lower withholding tax rate as per the DTAA, they should submit Form 10F along with Form 15CB.
• CA Certificate: Form 15CB acts as a certificate issued by a Chartered Accountant. The CA examines the relevant documents, verifies the nature of the payment, and certifies that the provisions of the Income Tax Act and DTAA have been duly complied with.

Form 15CA or Form 15CB Applicability

• No forms are needed if the remittance amount is not subject to taxation.
• Only Part D of Form 15CA must be filed if the remittance falls within one of the specified exemption lists.
• If the amount remitted in a given financial year is less than INR 5 lakh, only Form 15CA - Part A needs to be filed.
• Remittances over INR 5 lakh require the submission of Form 15CA, Part C, and Form 15CB.
• Form 15CA, Part B, must be filed if the remittance exceeds INR 5 lakhs and a certificate under Sections 195(2), 195 (3), and 197 of the Income Tax has been obtained.

The repercussions of failing to file Forms 15CA and 15CB on time:

A person may be penalized under section 271I of the Income Tax Act of 1961 if they fail to file Forms 15CA and 15CB on time. This rule also applies if he provides false information. The Assessing Officer may order the individual in question to pay a fine of one lakh rupees for non-compliance.

Updated Guidelines for submitting 15CA and 15CB forms

• The income tax department has updated the guidelines for filling out Forms 15CA and 15CB and submitting them on time. The amended regulations came into effect on April 1st, 2016.
• An individual will not be required to provide Form 15CA and 15CB, which do not require RBI approval, to remit money.
• The number of payments of a specific category listed in Rule 37BB has increased from 28 to 33, including import payments. These payments are exempt from filing Forms 15CA and 15CB.
• Only taxable payments to non-residents and payments exceeding Rs.5 lakhs will require filing Form No. 15CB.

How to file Forms 15CA

• Register on the e-filing website.
• Enter your credentials and log in to the e-filing portal.
• Then click on e-file, select income tax forms, and go to income tax forms
• Search Form 15CB or 15CA.
• Choose Form 15CA or Form 15CB from the File Income Tax Forms page. Alternatively, to file the form, type Form 15CA or 15CB into the search box.
• Enter the necessary information.
• On the next screen, click the "Get Started" button. You will be taken to the specific form you selected. Then, Put in the information.
• Then, e-verify the form.
• Once all the information has been entered, scroll down and select the "e-verify" option.

Then, the Verification will be completed successfully

A success message, an acknowledgment number, and a transaction ID are shown following successful e-verification.