Whenever it comes to foreign remittance the first thing which comes in our mind is compliance with respect to Form 15CA and Form 15CB. Most of the user find it very confusing and tedious job to comply with Form 15CA and Form 15CB. Many of them are unaware about the current provisions and compliance method. Hence, today I will discuss some key factors regarding Form 15CA and Form 15CB alongwith the compliance procedure.
Page Contents
Some of the key factors for furnishing form 15CA & 15CB are:
1. Both forms 15CA and 15CB are to be filed online
Earlier only form 15CA had to be filed online but now form 15CB i.e certificate by a Chartered Accountant is also to be filed online.
2. Requirement for filing form 15CA & 15CB
A) There are situations where Forms 15CA/CB will not be required at all:
♣ No forms 15CA & 15CB will be required to be furnished by an individual for remittance which does not require RBI approval under Liberalised Remittance Scheme.
♣ The list of payments where there is no requirement for forms 15CA, 15CB has been expanded under Rule 37BB. Following are the new entries in the specified list where no forms 15CA CB are required:
- Advance Payment against import
- Payment towards import-Settlement of Invoice
- Imports by diplomatic missions
- Intermediary Trade
- Import below Rs. 5,00,000/- (For use by ECD offices)
Overall List of Payments where no forms 15CA CB are required is as follows :-
| Sl. No. | Purpose code as per RBI | Nature of payment |
| (1) | (2) | (3) |
| 1 | S0001 | Indian investment abroad – in equity capital (shares) |
| 2 | S0002 | Indian investment abroad – in debt securities |
| 3 | S0003 | Indian investment abroad – in branches and wholly owned subsidiaries |
| 4 | S0004 | Indian investment abroad – in subsidiaries and associates |
| 5 | S0005 | Indian investment abroad – in real estate |
| 6 | S0011 | Loans extended to Non-Residents |
| 7 | S0101 | Advance payment against imports |
| 8 | S0102 | Payment towards imports – settlement of invoice |
| 9 | S0103 | Imports by diplomatic missions |
| 10 | S0104 | Intermediary trade |
| 11 | S0190 | Imports below Rs.5,00,000 – (For use by ECD offices) |
| 12 | SO202 | Payment for operating expenses of Indian shipping companies operating abroad |
| 13 | SO208 | Operating expenses of Indian Airlines companies operating abroad |
| 14 | S0212 | Booking of passages abroad – Airlines companies |
| 15 | S0301 | Remittance towards business travel |
| 16 | S0302 | Travel under basic travel quota (BTQ) |
| 17 | S0303 | Travel for pilgrimage |
| 18 | S0304 | Travel for medical treatment |
| 19 | S0305 | Travel for education (including fees, hostel expenses etc.) |
| 20 | S0401 | Postal services |
| 21 | S0501 | Construction of projects abroad by Indian companies including import of goods at project site |
| 22 | S0602 | Freight insurance – relating to import and export of goods |
| 23 | S1011 | Payments for maintenance of offices abroad |
| 24 | S1201 | Maintenance of Indian embassies abroad |
| 25 | S1202 | Remittances by foreign embassies in India |
| 26 | S1301 | Remittance by non-residents towards family maintenance and savings |
| 27 | S1302 | Remittance towards personal gifts and donations |
| 28 | S1303 | Remittance towards donations to religious and charitable institutions abroad |
| 29 | S1304 | Remittance towards grants and donations to other Governments and charitable institutions established by the Governments |
| 30 | S1305 | Contributions or donations by the Government to international institutions |
| 31 | S1306 | Remittance towards payment or refund of taxes |
| 32 | S1501 | Refunds or rebates or reduction in invoice value on account of exports |
| 33 | S1503 | Payments by residents for international bidding. |
B) There are situations where no forms 15CB will be required:
- Form 15CB will not be required till the aggregate of remittances during the financial year does not exceed Rs. 5 lakhs.
- Form 15CB will also not be required where order/certificate of lower/no deduction is taken from the Jurisdictional Assessing Officer us 195(2), 195(3), 197 of the Income Tax Act’1961.
- Form 15CB is also not required where the remittance is not chargeable to tax.
C) Different parts/sections of Form 15CA required for different types of remittances:
Form 15CA has been divided into four different parts/sections and each part is required in different circumstances:
Part A
Where the remittance is chargeable to tax under the provisions of the Income-tax Act,1961 and the remittance or the aggregate of such remittances does not exceed five lakh rupees during the financial year.
Part B
Where the remittance is chargeable to tax under the provisions of the Income-tax Act,1961 and the remittance or the aggregate of such remittances does not exceed five lakh rupees during the financial year and an order/ certificate u/s 195(2)/ 195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer.
Part C
Where remittance is chargeable to tax under the provisions of Income-tax Act, 1961 and the remittance or the aggregate of such remittances exceeds five lakh rupees during the financial year and a certificate in Form No. 15CB from an accountant as defined in the Explanation below sub-section (2) of section 288 has been obtained.
Part D
Where the remittance is not chargeable to tax under the provisions of the Income-tax Act, 1961 {other than payments referred to in rule 37BB(3)} by the person referred to in rule 37BB(2).
D) Form 15CC:
Prescribed form No. 15CC for Quarterly statement to be furnished by an authorised dealer in respect of foreign remittances made by it.
E) Penalty of Rs. 1 lakh for each default of non-filing for forms 15CA/CB will be applicable
3. Procedure for submission of Form 15CA Online
There is change in the Procedure for filing Form 15CA. New Procedures is given here under for submitting FORM 15CA
Step 1:- Generate Signatures with the DSC Management Utility provided by the Income Tax Department and USB token / pfx file for each Form for submitting FORM 15CA.
Step 2:- Login with USER ID /Password and date of Birth/ incorporation on Incometaxindiaefiling.gov.in and navigate to the menu “e-File” → “Prepare and Submit Online Form (Other than ITR)” Upload signature file and → Select “Form 15CA”.
Step 3:- Click on “Form 15CA” tab and Select the appropriate part (“PART-A”, “PART-B”, PART-C” or “PART-D”) based on the remittances as applicable.
Step 4:- Fill in the details and click the “Submit” button. Errors, if any, will be shown on the right panel of the Form.
Step 5:- On successful validation, Click on Submit.
On successful submission it will be sent to the E Mail Id on record and receipt can be generated from →My Account → View Form 15CA → Select the Acknowledgement No. and print
Note: There is an option for withdrawal of Form 15CA before payment. Form 15CA can be withdrawn within 7 days of submission of the online form.
(The author is a CA in practice at Delhi and can be contacted at: E-mail: [email protected], Mobile: +91-9953199493)
Read Other Articles of CA Pratik Anand
Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.
(Republished with Amendments by Team Taxguru)
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Is Filing of Form 15CA compulsory for payments made to Foreign companies in Rupee?
Nice explanation on 15CA, CB.
Does any specific order or notification exist where RBI or Income Tax Dept state clearly that where NIL tax certificate u/s 197 is available , 15CB is not required?
Some Banks are insisting for 15CB even when certificate u/s 197 , which accounts for the entire amount to be transfered is provided
Sir, Any Time Limit for TDS Payment after Generate Form 15CA OR 15CB
Should be before date of remittance.
Sir,
Presently I am citizen and have applied for USA Immigration visa , which I am expecting within 2-3 months . When I receive US Immigration visa , my passport will be stamped accordingly . I want to know , after I receive US visa stamp on my Passport, can I apply to convert my ordinary S/B into NRO account ?
On immigration , I am planning to sell my immovable property in India and deposit the procceds into my SB/ NRO account . I plan to leave India within 6 months , before this I want to transfer my total assets to bank in USA . I understand that RBI permmits ” Remittance of Assets ” to foreign country on immigration .
I understand that for transfer of assets , I will have to submit 15CA & 15CB form certified by Chartered Accountant to my bank in India , which I will do .
Finally , I want to know complete procedure step by step for ” Remmitance of Assets ‘” to USA , still being in India , before I leave India to USA after 6 months . Thanks .
My client is NRI and having NRO and NRE Saving bank accounts in India. he want to transfer his fund in NRO account to his NRE account in the same bank. As per CBDT notification, NO 93/2015 dated 16th December 2015 effective from 01.04.2016 FORM 15CA and or 15CB is not required. However, the bank asking for FORM 15CA and 15CB.
we have gone through various rules and notifications of RBI and CBDT as per these provisions
Transfers/ remittances from NRO Accounts to NRE accounts for the specified 33 purposes covered under CBDT Notification No 93/2015 dated 16/12/2015 not taxable and certificates 15CA and/or 15CB are not required.
But some of the banks do insist for such certificates from CA and account holder/remitter.
Generally, banks ask for submitting 15CA/CB certificates even if they are not required as per rule. The bank takes this position and justifies that due to strict penalties and disclosures required by RBI and banks don’t want to take chance. When banks insist for these unnecessary and required certificates, account holders have no choice but to submit these certificates to banks so that they transfer funds from NRO to NRE.
What is the correct position? Is there confusion in circulars/notifications of RBI/CBDT?. Which authority should clarify the correct rule position? Any good article clarifying correct rule position. How should my clent proceed to transfer the balance from NRO to NRE account in the same bank?
kindly guide me on this matter. I would like to know the correct requirement as per rules and regulations
Hi Garvin. I’m stuck up in a similar position.Would be very helpful if we could discuss this one to one. my mail I’d is [email protected].
*Garvit
Typo
what was resolution on this? Same situation. Form is not required under rule 37BB and still banks insists on 15CA and CB and CA certificate
what happens when someone files a 15CB with wrong article number and Dtaa with other country ?
for example. instead of entering China – Article number 12, I mistakenly enter France – Article number 13.
Kindly help.
If it leads to any serious issue, what would be remedy ?
Dear Sir,
Could you please advice in which bucket (RBI purpose code) does Referral Fees fall.
I am NRI and having NRO and NRE Saving bank accounts in India. I want to transfer my fund in NRO account to my NRE account in the same bank. As per CBDT notification, NO 93/2015 dated 16th December 2015 effective from 01.04.2016 FORM 15CA and or 15CB is not required. However, the bank asking for FORM 15CA and 15CB.
I have gone through various rules and notifications of RBI and CBDT as per these provisions
Transfers/ remittances from NRO Accounts to NRE accounts for the specified 33 purposes covered under CBDT Notification No 93/2015 dated 16/12/2015 not taxable and certificates 15CA and/or 15CB are not required.
But some of the banks do insist for such certificates from CA and account holder/remitter.
Generally, banks ask for submitting 15CA/CB certificates even if they are not required as per rule. The bank takes this position and justifies that due to strict penalties and disclosures required by RBI and banks don’t want to take chance. When banks insist for these unnecessary and required certificates, account holders have no choice but to submit these certificates to banks so that they transfer funds from NRO to NRE.
What is the correct position? Is there confusion in circulars/notifications of RBI/CBDT?. Which authority should clarify the correct rule position? Any good article clarifying correct rule position. How should I proceed to transfer the balance from NRO to NRE account in the same bank?
kindly guide me on this matter. I would like to know the correct requirement as per rules and regulations
I have prepared the Form 15 CB while generating xml file its not generating .
An error is popping up stating “date of remittance should be between current date and last day of next financial year”, But i had already put the current date only even though its not validating
These many days I was uploading suddenly now this error is popping. I didn’t know what to do, May be due to new financial year is there any updation or some other problem .
So kindly suggest me what to do further to solve the issue
I require your help/guidance.
My daughter is in USA & US citizen. On her behalf Form 15CA was submitted on line for transfer of Rs.2.10 lakhs from her NRO account to NRE & acknowledgement was received.
It was mentioned in the Form 15CA “Date of Remittance” as 26.03.2018. Due to postal delay the signed copy of Form 15CA has not been received. I want to know ‘Will the Form 15CA be valid even after 26.03.2018?’.If not valid what is the remedy? Kindly advice.
Subramamian.V
sir
we file form 15ca and then the transaction fails what is needed to be done , and we are unable to send this amount do we need to notify again
I have to pay 2lakh to a agent firm registered in Australia related to agricultural visa
.bank officer demand form 15ca CB.i have agricultural income in my account.is this form required or not.if yes then which part of 15ca.
Hello Sir,
From Where i can get this notification or circular ??
Can you share the details ??
I want to transfer funds from my NRO to my NRE account. My CA does not know what remittance purpose is to be chosen under rule 37 BB.And let
me know which forms to be submitted.
ie15ca only or both 15ca & 15cb
Please advice.
I have a client who wants to transfer money from sale of his house property (after paying due capital gain) to his account in Kuwait. Is 15CA and/or 15CB needed in this case where the money is only being transferred from ones own account (in India) to another account (also own account) in another country?
I am a commission agent in International Textile business. Some times I have to pay commission to my Spanish and Portuguese counterpart( IN USD).
SHall I need to submit 15 CA and 15 CB form, with all shipment documents for order.
Sir, if a doctor who is rendering services to clients sent from saudi Arabia ( institution where has a memebership as a registered Doctor) for expartriates checkup and in turn remits back 10% of fees received from clients back to Saudi Arabia Institution is he liable to deduct TDS on such remittance as a professional service under sec 194J. DTAA agreement does not exists.Is 10% rate of TDS deduction on such remittance is proper. Kindly reply at earliest.
I had invested in icici prudential policy for last ten years from my Nre savings account.Now the policy has matured and the maturity Sum has been deposited to my NRO account.I wish to transfer the money from my NRO account to NRe account in order to save the taxes on interest and the Sum is around 50 lakh.Do I require to produce form 15ca and form 15cb.Kindly also advise for the rest of the procedure.
thanks
I am a USA citizen with OCI card.
I want to transfer funds from my NRO to my NRE account. My CA does not know what remittance purpose is to be chosen under rule 37 BB.
Please advice.
hi
i am a research student at university of glasgow , UK. i need to make transfer of my funds in to my indian bank account to my UK bank account in order to cover my tution fee and living expenses. total amount needed exceed the limit of 5 lacks so i was wondering if you could come with any idea relating to consolidation of my expenses in UK.
total amount needed is 50 lac in a go for the financial year 2016-17 and another 50 for finacial year 2017-18.
cheers
i am buying shares in a overseas company . now i have a opened a local bank account overseas . i want to transfer funds from my indian account to my personal account overseas and then make the investment locally . so will i need 15CA and 15 CB both. or just 15 CA part D .
My son who is an NRI was joint holder in a local savings bank account with my mother who was principal holder My mother passed away The bank after due process has changed this account to an NRO account making my son as principal holder A sum of Rs 10 lacs is lying in this account which were my mothers savings Now as principal holder, my son wants to transfer this to his own account abroad My question is i) Does he have to file form 15CA or CB and ii) if yes Can he file the form 15CA under Part D being not liable to tax ? He has had no earnings in India though he has a PAN number
What should i do if i want to pay sum to an artist coming from abroad country?
Kindly let me know. We are running a partnership firm. we have PAN number but we have not DCS.
Greetings Sir,
Is it possible to cancel or withdraw Form 15 CB that we filed? Or can we revise the same ?
Regards,
Hi Sir,
So as per the amended rules for import of material/consumables (any value) by an entity in Bangalore, no 15CA and 15CB required. Is there any upper limit for the import value?
Sir,
some basic info are reqd:
1) what exactly the meaning of: Imports below Rs.5,00,000 – (For use by ECD offices)
2) Form 15CB will not be required till the aggregate of remittances during the financial year does not exceed Rs. 5 lakhs. Whether it is aggregate of taxable remittance or taxable and non taxable remittance ?
3) once the limit of rs.5 lakhs is reached, should we give information of earlier remittances as well.
4) Part D says: Where the remittance is not chargeable to tax under the provisions of the Income-tax Act, 1961 {other than payments referred to in rule 37BB(3)} by the person referred to in rule 37BB(2).- so when there is remittance of principal amount of loan which exceeds 5 lakhs, but interest thereon is less than 5 lakhs should 15ca be filed? Note this remittance is tax free.
5) in case there is remittance of principal amount of loan exceeding 5 lakhs and interest also exceeds rs.5 lakhs, both info can be given in one 15ca or two separate 15ca are to be filed?
where should i download 15ca form
Sir I am unable to see latest 15CA form in the income tax portal, plz suggest
Sir,
Withdrawal of 15 CA nullify the effect of 15 CB??
Sir, what should be remedy if wrongly clicked / withdrawn 15CA after payment