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.

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: capratikanand@gmail.com, 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)

Author Bio

Qualification: CA in Practice
Company: Pratik & Associates
Location: New Delhi, New Delhi, IN
Member Since: 10 Jun 2017 | Total Posts: 54
Pratik Anand is the founder of youronlinefilings.com, an online startup for business registrations, annual business compliance services, Tax filings, book keeping, legal consultancy etc. He is a Chartered accountant by profession and has special flair and expertise in the area of direct Taxation. H View Full Profile

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32 Comments

  1. SG2020 says:

    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 .

  2. CA Garvit Jain says:

    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

  3. kush says:

    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 ?

  4. ANOOP LAL CHAUDHARY says:

    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

  5. Nivetha.K says:

    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

  6. Subramanian.V says:

    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

  7. kameswararao says:

    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

  8. Sunil says:

    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.

  9. sadasivam says:

    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.

  10. Fayesal Siddiqui says:

    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?

  11. Hemant Ladgaonkar says:

    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.

  12. Priyanka says:

    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.

  13. Capt Ranjan says:

    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

  14. Ramesh Shishu says:

    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.

  15. kumar says:

    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

  16. nishant varsani says:

    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 .

  17. Ashwin Panemangalore says:

    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

  18. Prashant says:

    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.

    1. MOHAMMAD YOUNUS says:

      I am an importer having annually remittance of above rupees one crore. Whether in each & every remittance , is it required to furnish 15CA/15CB.

  19. Anjali Mary says:

    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?

    1. MOHAMMAD YOUNUS says:

      I am an importer having foreign remittance above rupees one crore per annum, whether 15CA /15CB is required in each and every remittance or once in a year.

  20. Hitesh Chandarana says:

    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?

    1. Santosh M. Unecha says:

      sir if we are organizing an international film festival and if paying screening fees for the international film to the distributes in abroad and if amount is less then 5 lakhs per agency than want to know that still we have to pay 15ca 15 cb?

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