Complete Guide to Form 15CA & 15CB Filing for Remittance
Welcome to our blog on Complete Guide to Form 15CA & 15CB Filing for Remittance! Sending money abroad requires following certain legal formalities, and Forms 15CA and 15CB are key documents mandated by the Income Tax Department to ensure compliance. Form 15CA is a declaration providing details of the remitter, recipient, and amount being sent, while Form 15CB is a certificate from a Chartered Accountant confirming that taxes, if applicable, have been paid or deducted. This simple guide will help you understand what these forms are, how to file them, the documents required, and the charges involved, so you can complete your foreign remittance smoothly, safely, and without any legal hassle.
Overview of Form 15CA & 15CB for Foreign Remittance
When sending money abroad, understanding the roles of Form 15CA and Form 15CB is important to stay compliant and avoid penalties. Form 15CA is a declaration made by the person sending the money. It includes details like the payment amount, the purpose of the remittance, the recipient’s country, and applicable taxes. Filing Form 15CA online through your bank is mandatory before processing any international payment.
On the other hand, Form 15CB is a certificate issued by a Chartered Accountant (CA). This form confirms that the correct amount of tax has been paid or deducted on the remittance. It is only required in cases where tax deduction is applicable and helps the bank verify that your transaction is fully compliant with income tax rules.
Who Needs to File These Forms?
Individuals making foreign payments: If you are sending money abroad for education, medical treatment, travel, or gifts, you may need to file Form 15CA. In certain cases, Form 15CB from a CA may also be required, especially if taxes are applicable.
Companies transferring funds abroad: Businesses sending payments to overseas vendors, subsidiaries, or partners must comply with these forms to ensure proper tax deduction and legal compliance.
Businesses paying for imports, services, or investments: Any company making payments for imports, professional services, software, or foreign investments needs to file Form 15CA, and in applicable cases, Form 15CB. These forms help track the transaction and confirm that all tax obligations are met, avoiding penalties and delays in processing.
Key Difference Between Form 15CA and Form 15CB
| Feature | Form 15CA | Form 15CB |
|---|---|---|
| Type | Self-declaration | Certificate issued by a Chartered Accountant (CA) |
| Purpose | Provides details of the remittance, recipient, and applicable taxes | Confirms that the correct tax has been paid or deducted on the remittance |
| Who Prepares | The person making the payment | A Chartered Accountant (CA) |
| Requirement | Mandatory for all foreign remittances | Required only in certain cases where tax deduction is applicable |
| Filing Method | Filed online through the bank | Submitted to the bank along with Form 15CA when applicable |
| Legal Importance | Helps the Income Tax Department track international transactions | Ensures the remittance is compliant with tax laws and avoids penalties |
Foreign Remittance Scenarios Requiring Filing
There are several common situations where you may need to file Form 15CA and, in some cases, Form 15CB before sending money abroad:
Payment for overseas education or tuition fees: If you are paying for studies, courses, or training programs in another country, these forms ensure your payment is tracked and tax-compliant, so there are no issues with the bank or authorities.
Payment for imports of goods or services: Businesses importing products or paying for services from foreign vendors must file these forms to follow legal and tax requirements, helping avoid any delay in processing international payments.
Investment in foreign companies or assets: Whether investing in stocks, mutual funds, or real estate abroad, filing these forms ensures transparency and compliance with Indian tax laws, making your investments smooth and worry-free.
Donations to foreign charities: Contributions to international charitable organizations also require proper documentation through Form 15CA, and Form 15CB if taxes are applicable, ensuring your donations are legally recorded.
Documents Required for Filing Form 15CA & 15CB
Before you can file Form 15CA and Form 15CB, it’s important to gather all the necessary documents. Having everything ready makes the process smooth, quick, and hassle-free.
Documents Needed:
PAN Card of Remitter: Your PAN card is required to identify the person sending the money and link the transaction to your tax records.
Bank Account Details: Complete details of your bank account from which the remittance will be made.
Invoice or Agreement for Payment: Any invoice, contract, or agreement related to the payment being sent abroad.
Tax Payment/Deduction Proof: Proof of tax paid or deducted on the remittance, if applicable.
Form 15CB (if applicable): Certificate from a Chartered Accountant confirming that taxes have been paid or deducted, required in certain cases.
Professional Fees for Filing Form 15CA & 15CB
Charges vary based on the complexity of the transaction and the CA firm.
Average fees range from ₹3,000 to ₹5,000 per form.
Complex remittances, such as those requiring DTAA (Double Taxation Avoidance Agreement) certification, may incur higher charges.
Hiring a professional ensures accuracy, proper tax compliance, and smooth processing of your foreign remittance.
Step-by-Step Guide to Filing Form 15CA & 15CB
- Step 1: Identify the Required Form
We first check which form applies to your remittance—whether it’s Form 15CA Part A, C, or D, and if a Form 15CB is needed. - Step 2: Collect Your Documents
We help you gather all necessary documents like PAN, beneficiary details, invoice/contract, payment purpose, amount, currency, and tax proof. Having everything ready ensures a smooth process. - Step 3: Prepare Form 15CB (if applicable)
If your remittance is taxable, our Chartered Accountant prepares and signs Form 15CB, confirming that all tax obligations are met. - Step 4: Fill Form 15CA Online
We fill out Form 15CA on your behalf with all the remittance details, linking Form 15CB if required, so you don’t have to worry about any technicalities. - Step 5: Verify and Submit
Once the forms are ready, we review everything carefully and e-verify them using Aadhaar OTP, Net Banking, or Digital Signature Certificate (DSC). - Step 6: Provide Acknowledgment to Bank
Finally, we give you the acknowledgment along with Form 15CB (if applicable) and other required documents for submission to your bank, ensuring your foreign remittance is processed quickly and without any legal issues.
Get Expert Help with Form 15CA & 15CB Filing
For a smooth and hassle-free process of sending money abroad, you can rely on expert guidance from VakilAdda. Our team helps you with accurate filing of Form 15CA and Form 15CB, ensures all required documents are in order, and makes sure your remittance complies with all legal and tax requirements.
Whether you are an individual or a business, we simplify the entire process so you can focus on your work or studies without worrying about technicalities. For assistance, visit our website vakiladda.com or call +91 97263 65833 to get in touch with our experts today.
