What Are Forms 15CA and 15CB?

What Are Forms 15CA and 15CB?

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Key Takeaways

If you are an NRI receiving money from persons in India, a bank would be able to credit you the funds only if the sender has submitted Forms 15CA and 15CB. Let us understand what these forms are.

Many non-resident Indians receive income from individuals in India -- for example, in the form of rent. Let us assume you have let out a residential property you own in India. When your tenant pays you the rent, he or she must submit forms 15CA and 15CB.

Under section 195 of the Indian Income Tax Act, anyone making a payment to an NRI must collect TDS if the transaction is taxable in India, and the remitter must submit Form 15CA. In some cases, you may have to submit a certificate from a chartered account in Form 15CB.

These forms are to ascertain whether remittance payments are in-line with India's income tax laws. Both documents areavailable online.

These forms are helpful for you as an NRI to avoid double taxation.

What is Form 15CA?

Form 15CA is a disclosure by the remitter that tax has been deducted from the payments being made to an NRI recipient. This helps the Indian government efficiently collect tax at the time of the remittance instead of leaving it to NRI taxpayers to file income tax papers and pay tax.

Parts of Form 15CA

  • Part A – Part A of the form is to be filed when the remittance amount is taxable and the cumulative remittance in a financial year is greater than INR 5 lakh.
  • Part B – Part B of the form has to be filed when the cumulative remittance in a particular financial year surpasses INR 5 lakh and when an order/certificate under section 195(2)/ 195(3)/ 197 of the income tax Act has been acquired from an assessing officer (AO)
  • Part C – Part C of the form has to be filed only when the aggregate remittance in a particular financial year exceeds INR 5 lakh and a certificate from an accountant in Form 15CB has been obtained.
  • Part D – Part D of the form has to be filed when the remittances are non-taxable.

If a remittance to an NRI does not require RBI approval, then the remitter does not have to furnish Form 15CA and 15CB. RBI excludes 33 items under Rule 37BB.

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What is Form 15CB?

Form 15CB is a certificate from a chartered accountant that is required to be uploaded along with form 15CA if the remittance in a financial year exceeds INR 5 lakh. The chartered accountant will mention payment details, the purpose of remittance and the rate of tax deducted at source (TDS).

Documents needed for Form 15 CA and Form 15 CB

Details of Remitter

  • Remitter's Name
  • Remitter's Address
  • Remitter's PAN Number
  • Principal Place of Business of the Remitter
  • E-mail ID of the Remitter and Phone Number
  • Status of the Remitter

Details of Remittee

  • Name and Status of Remittee
  • Address of the Remittee
  • Principal Place of Business
  • Country of the Remittee

Details of the Remittance

  • Destination Country of Remittance
  • Currency used for remittance
  • Amount of Remittance in Indian currency
  • Proposed Date of Remittance

Bank Details of the Remitter

  • Name of Bank of Remitter
  • Name of Branch of Bank
  • BSR Code of the Remitter's Bank

Final Note

If you are receiving funds from individuals in India that are taxable, make sure your sender submits Forms 15CA and 15CB to India's income tax department. If these forms are not submitted, your sender's bank may not process a high-value remittance request.

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*Disclaimer: This article is published purely from an information perspective and it should not be deduced that the offering is available from DBS Bank India Limited or in partnership with any of its channel partners.

The purpose of this blog is not to provide advice but to provide information. Sound professional advice should be taken before making any investment decisions. The bank will not be responsible for any tax loss/other loss suffered by a person acting on the above.

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