Form 15CA & 15CB- New Rules

The new rules for preparation, filing/ issuing forms 15CA and 15CB are effective from 01st April’2016.With these new rules coming into effect significant changes have come into effect for furnishing forms 15CA & 15CB.Some of the key changes for furnishing form 15CA & 15CB that have come into effect from 01st April’2016 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. Changes in 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) New Form 15CC prescribed:

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

F) Procedure for submission of Form 15CA Online w.e.f. 01.04.2016
There is change in the Procedure for filing Form 15CA. New Procedures is given here under for submitting FORM 15 CA from 01.04.2016

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

G) Now 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.