How to File Form 15CA & 15CB Easily

Introduction

With the emergence of the world economy, border transactions have assumed an indispensable component of personal as well as business finance. From investment abroad to use of overseas services, or sending money abroad for the purpose of study or medical treatment, Indian citizens are increasingly occupied with remitting abroad. While the government of India, nonetheless, keeps strict watch upon such remittance so as to ensure documentation and payment of due taxes, Form 15CA and 15CB equally assume significance. These forms together allow us to maintain track of foreign payments and ensure that necessary taxes have been taken into account under the laws of India.

This stepwise guide expands upon the purpose, applicability, process, documentation, and penalty provisions associated with filing Form 15CA-CB. Legal N Tax, as a brand for quality compliance and taxation, guides its clients through an easy and proper approach for fulfilling this requirement.

What are Form 15CA and Form 15CB?

Form 15CA is basically, a declaration by the remitter of the transaction to be undertaken. This form indicates that deduction of the income-tax has been made, where necessary, on the remittance being remitted outside India. This form is electronically filed through the portal of the Income Tax Department and helps the department keep track of overseas transactions.

On the other hand, Form-15CB is a certificate that is issued by a Chartered Accountant (CA). It certifies the nature of remittance, the taxability under the laws of India or DTAA (Double Taxation Avoidance Agreement) and also whether section 195 of the income tax act 1961 has been complied with for deduction of applicable taxes.

Why Is Filing Form 15CA-CB Important?

Filing these forms is not only procedural but has various uses for compliance as well as regulation. For regulatory reporting, submission of these forms is mandatory by the Income Tax Department for monitoring foreign payments. For filing of Form 15CA, the Reserve Bank of India (RBI) has also fixed submission of the form as pre-requisite for all banks for making an outward remittance. Prevention of delay and also of penalty is the other consideration for these forms being mandatory. Filing of incorrect or the missing filing of these forms prescribed can lead to hefty penalties under the Income Tax Act. These forms provide cross-country transparency, and as such, the Indian government can prevent tax evasion and unlawful fund transfers.

Accurate completion of the 15CA CB form is required for maintaining compliance for quick and streamlined processing of your foreign payments.

What is there in Form 15CA?

Form 15CA consists of four parts:

• Part A: For payments which are chargeable to tax of up to ₹5,00,000 payable per annum.
• Part B: For cases of remittance chargeable to tax for amounts exceeding ₹5,00,000during financial year and an order/certificate under Section 195(2)/195(3)/197 is obtained from the AO.
• Part C: For Tax payable on remittance exceeding ₹5,00,000, along with Form 15CB.
• Part D: For remittances which are not chargeable to tax.

What is in Form 15CB?

Form 15CB is an electronic formcertified by a practicing chartered accountant. It consists of:

• Personal and banking details of remitter and remittee for the purpose of the transaction.
• Information related to the nature and purpose of the transaction.
• Taxability of the transaction under the Income Tax Act and corresponding DTAA provisions.
• Statement of particulars of TDS.
• Justification where TDS is not deductible.

Note: However, in practice, banks often insist on receiving Form 15CA-CB even for transactions that are exempt under Rule 37BB, due to internal compliance checks or conservative procedures. This makes it important to stay prepared with the form, even when technically not required—just to avoid delays or disputes during processing.

Documents Required for Filing Form 15CA-CB

1. PAN card of the remitter.
2. PAN card / Tax Residency Certificate (TRC) of the remittee.
3. Invoice or contract for supporting remittance.
4. Details of Bank account of remitter as well as the remittee
5. Nature and purpose of the remittance.
6. No PE (Permanent Establishment) statement, whereverneeded.
7. DTAA details and applicable tax rate.
8. Challan of TDS deposited (Wherever applicable).
9. Any other details which may be relevant

Step-by-Step Guide to Filing

• Step 1: Verification of Applicability – Ascertain the nature and value of the transaction to confirm that Forms 15CA and 15CB are required.
• Step 2: Chartered Accountant Issues Form 15CB – The chartered accountant evaluates the transaction and issues Form 15CB.
• Step 3: Fill out and Submit Form 15CA – Fill the form and fill all mandatory and required fields though online income tax portal and submit after review.
• Step 4: Submission of forms to the bank – Download form 15CA and submit 15CA & 15CB to the bank for the processing of the remittance.

Penalty for Not Filing or Filing Incorrectly

1. Penalty of ₹1,00,000 under Section 271.
2. Delays or refusal of remittance by banks.
3. Disallowance of expenditure.
4. Risk of tax scrutiny and litigation.

How Legal N Tax Can Help You?

Our approach is not just simple compliance, but rather specialized advice on each step of the process of filing Form 15CA and 15CB. Our experienced Chartered Accountants carefully examine the nature of your remittance and examines whether there is any tax associated with the transaction under the Indian regulations or relevant DTAA provisions, and ensures that tax has been calculated correctly. We help clients prepare, review, and furnish form 15CB where required, checking for proper documentation of 15CA filing. We even correspond appropriately with banks to resolve queries and ensure easy completion of overseas transaction. By leaving your overseas remittance with Legal N Tax, you not only reduce the likelihood of delay and penalty, but also have end-to-end service that keeps your overseas remittance free of worries and into compliance.

• Highly qualified Chartered Accountants having extensive technical skills.
• Tax law and DTAA analysis.
• Complete coordination with banks.
• End-to-end documentation and filing support.

Conclusion

Whether you are an employee sending money to finance family outside, an NRI sending fee for study abroad, or an import/exporter sending for overseas procurements or services, Form 15CA and 15CB are to be complied with along with complete due diligence. Incorrect filing or default can generate regulatory notices, fines, and delay in receiving payments. Many individuals and companies inadvertently slip into non-compliance out of sheer unawareness of applicable rules and regulations as amended from time to time.

At Legal N Tax, we efficiently and professionally bridge that knowledge gap. Our services put youat comfort as we take care of all the documentation, evaluation of tax deduction, coordination withbanks, and submission of e-filing process. If you are unclear about the appropriate process of filing Form 15 CA and CB, our skilled team is here for your assistance.

Reach out to us today to have your international remittance process seamless and compliant. Send your query at mail@legalntaxindia.com and get the free consultation.