Introduction to form 15CA and 15CB

A person making remittance or in simple words a payment to Non-resident(not being a company) or foreign company has to fill form 15CA and sometimes 15CB depending upon the conditions in which the payment is being made. Form 15CA can be filled online and is done so that The Income Tax Department can keep a record of all the foreign remittances separately. It helps them to ensure the nature of tax liability also. This form is filled only when the remittance is chargeable to tax in India and same is mentioned in the form as headings. Discussed below is the scenario as to when you need to fill Form 15CA and 15CB and what is the procedure to fill them and forward them further.

According to rule 37BB, there are certain cases when you don’t need to report remittance in Form 15CA and 15CB. The specified list is as follows;

Purpose code as per RBI Nature of Payment
S0001 When-Indian investment abroad -in equity capital (shares)
S0002 When-Indian investment abroad -in debt securities
S0003 When-Indian investment abroad -in branches and wholly owned subsidiaries
S0004 When-Indian investment abroad -in subsidiaries and associates
S0005 When-Indian investment abroad -in real estate
S0011 When-Loans are extended to Non-Residents
S0202 When-Payment made for operating expenses of Indian shipping companies that are operating abroad
S0208 When-Operating expenses of Indian Airlines companies that are operating abroad
S0212 When-Booking of passages abroad -Airlines companies
S0301 When-Remittance made towards business travel.
S0302 When-Travelling under Basic Travel Quota
S0303 When-Travelling for pilgrimage
S0304 When-Travelling for medical treatment
S0305 When-Travelling for education (including fees, hostel expenses etc.)
S0401 When- Using Postal services
S0501 When-Construction of projects abroad by Indian companies including import of goods at project site
S0602 When-Freight insurance – relating to import and export of goods
S1011 When-Payments made for maintenance of offices abroad
S1201 When-Maintenance of Indian embassies abroad
S1202 When-Remittances made by foreign embassies in India
S1301 When-Remittance made by non-residents towards family maintenance and savings
S1302 When-Remittance made towards personal gifts and donations
S1303 When-Remittance made towards donations to religious and charitable institutions abroad
S1304 When-Remittance made towards grants and donations to other Governments and charitable institutions established by the Governments
S1305 When-Contributions or donations by the Government to international institutions
S1306 When-Remittance made towards payment or refund of taxes
S1501 When-Refunds or rebates or reduction in invoice value on account of exports
S1503 When-Payments made by residents for international bidding.

When remittance being made is not ascertain Form 15CB is filled which is basically certificate issued by a Chartered Accountant in which he certifies details of payment, TDS rate and TDS deduction as per section 195 of the income tax act. This form is not required if the remittance is not more than Rupees fifty thousand in one single transaction and Rupees two lakhs and fifty thousand in one financial year. Simply, one can submit Form 15CA and 15CB if above-mentioned situations are not the case with the person making the remittance. This submission is done online and forms can be downloaded also. One can also contact legal advisers for the same for there are many firms who provide legal solutions to such problems.

You can file ITR onlineand TDS return at TaxRaahi with the help of experts online.