What is Form 15CA?

The compliances made regarding foreign remittances can often be overwhelming because this process involves not only regular money but also foreign money. The concept of compliance itself is quite daunting. This feeling is mutual when it comes to filing Form 15CA. Therefore, to make the procedure less daunting and ensure smooth and hassle-free compliance and submission, this article has compiled a comprehensive guide to filing Form 15CA.

What is Form 15CA?

Are you wonder what is form 15CA? Form 15CA serves as a declaration from the remitter (the individual or entity sending money to a non-resident). It functions as a means of gathering information regarding payments to individuals or entities not residents of the country. 

This declaration is instrumental in assisting the Income Tax Department in determining the taxability of these payments in the hands of the non-resident recipients. It's noteworthy that banks and authorized dealers are increasingly vigilant in ensuring they receive Form 15CA and Form 15CB before proceeding with the remittance.

When making foreign remittances, individuals must provide Form 15CA, and this submission is completed online. In specific scenarios, the submission of Form 15CA must be accompanied by a certificate issued by a practising Chartered Accountant in the form of Form 15CB.
 

Applicability of Form 15CA

• No forms will be required when the remittance amount isn't chargeable per the tax laws. 
• Only Form 15CA part D must be submitted when the remittance falls under the specified list of exemptions.
• One must submit only part A of Form 15CA if the remittance is lesser than five lakh rupees in a specific financial year. 
• In case the remittance is exceeding five lakh rupees, one must submit the duly filled part C of form 15CA and 15CB.
• In case the remittance is exceeding five lakh rupees, and the certificate under section 195(3)/ section 195(2) of Income Tax has been received, one must submit part B of form 15CA.
   

Parts of Form 15CA

The form is structured into four distinct sections, each intended for completion based on the prevailing circumstances. These four sections are as follows:

Part A:

This section is to be completed regardless of whether the remittance is taxable or not, as long as the total remittance or its cumulative value does not surpass five lakhs within a given financial year.

Part B:

You should fill out this section when you have obtained a Certificate under Section 195(3)/195(2) /197 of the Income Tax Act from the Assessing Officer.

Part C:

This part should be completed when the total remittance or its cumulative value exceeds rupees five lakhs in a financial year, and this remittance is subject to taxation.

Part D:

This section is to be filled out when, in accordance with domestic laws, the remittance is not subject to taxation.
 

Procedure to File Form 15CA Online

• Navigate to the 'eFile' tab and select 'Income Tax Returns.' Afterward, click on 'File Income Tax Forms.'
• This action will redirect you to the 'File Income Tax Forms' page. Choose 'Others (Source of Income irrelevant)' and opt for Form No. 15CA.
• Next, on the 'Instructions' page, click 'Let's Get Started.'
• In the 'Information for payment to Non-Resident' section, input the 'Filing type' (either 'Original' or 'Revised'), select the appropriate financial year, and proceed by clicking on 'Continue.'
• In Form No. 15CA, you must choose the relevant part from Parts A, B, and C.

Part-A

• You must provide information about the recipient (remittee), the sender (remitter), and the specifics of the fund transfer (remittance). Form No. 15CB from a Chartered Accountant is not needed. Lastly, you will need to complete the verification process.

Part-B

• Similarly, in Part B, you must input information regarding the sender, recipient, and the fund transfer. The distinction here is that you must include details of the AO Order. Notably, there is no need for Form No. 15CB in this case.

Part-C

• In Part C, you must provide information about the Chartered Accountant (CA) and any associated attachments. This is in addition to the recipient and fund transfer details.
• After completing all the pertinent information, click 'Assign to CA.'
• When you click 'Yes' to confirm, a message will appear indicating that the assignment to the CA was successful.

Navigate to the Dashboard and select 'Pending Actions.'

• In this section, you will find Form No. 15CB that your Chartered Accountant has uploaded. You have the option to either approve or decline Form No. 15CA.
• If you choose to 'Accept,' you will be directed to the 'e-Verify page.' A confirmation message reading ' Submitted Successfully ' will appear after successfully e-verifying Form No. 15CA using either a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).

Part-D

• In Part D, you will need to input details about the sender, which includes their name, PAN, sender status, residential status, contact information, and address. Additionally, Part D necessitates verifying the individual submitting Form No. 15CA. Be sure to click on the 'Save' option.
• Proceed to provide the recipient's information, followed by the particulars of the fund transfer.
• Once you've filled in all the necessary information, proceed to 'Verify' the details and click on 'Preview.'
• After thoroughly reviewing all the information in the 'Preview' section, you must electronically verify the form using a Digital Signature Certificate (DSC).

Upon successful e-Verification, a confirmation message and a Transaction ID and Acknowledgement Number will be displayed. 
 

List of Payment / Remittances That Doesn't Require 15CA

Form 15CA and Form 15CB are unnecessary for transactions that do not necessitate RBI approval. The payments listed below are as per rule 37BB prescribed by RBI.

Documents Required For E-Filing Form No. 15CA

Details of Remitter

• Remitter's name
• Remitter's address
• Remitter's PAN
• Remitter's primary business location
• Remitter's contact number and email address
• Remitter's status

Details of Remittee

• Remittee's status and name
• Remittee's address
• Remittee's country
• Remittee's primary business location

Details of the Remittance

• Country where the remittance has been made
• Currency in which the remittance has been made
• Remittance amount in INR 
• Remittance's proposed date
• Remittance's nature, according to the agreement 

Bank details of the Remitter

• Remitter's bank name
• Remitter's bank branch
• Bank's BSR code

Others

• Signing the person's father's name
• Signing person's designation

Documents from the Remittee

• Form 10F duly filled by the authorized person of the remittee.
• Tax residency certificate from the remittee 
• Certificate that the remittee does not have any permanent establishment in India.
   

Things to Remember About Form 15CA

1. To guarantee the correct tax deduction at source (TDS), if applicable, Form 15CA is used to gather information on payments made to non-residents.
2. The Form 15 CA is divided into many components, each corresponding to a specific payment. The type and intent of the payment determine the category chosen. The category also establishes if a Form 15CB (Chartered Accountant's Certificate) is necessary.
3. Before paying the non-resident, the payer must deduct TDS at the appropriate rate based on Form 15 CA and 15CB (where applicable) details. The Government must receive a deposit of the TDS that was taken.
4. Penalties and legal repercussions may result from failure to comply with Form 15 CA standards. It is crucial to complete the form completely and adhere to the instructions.
    

Conclusion

Comprehending Form 15CA meaning may seem daunting, yet it is crucial to familiarize yourself with these documents to maintain a favorable standing with the Government and prevent potential penalties or charges. These forms define the prerequisites for paying foreign entities or repatriating funds into India from overseas. 

When filling out these forms, it's imperative to have all the requisite documents and information readily available. This proactive approach will facilitate a smooth and efficient filing process with the Indian Income Tax Department.