Form 15CA is submitted online if there is a foreign remittance to non residents and Form 15CB is a certificate issued by a CA after examining the remittance having regard to provisions of Double tax Avoidance Agreements with the Recipient’s Residence Country.

For ease of doing business, Modi Government has come up with many relaxations in compliance in regard to foreign remittance. With the changes  in compliance of Form 15CA/CB, foreign remittance is now as easy as making payment within the country.

 

The new rules for preparation, filing/ issuing forms 15CA and 15CB are effective from 01st April 2016. Some of the key changes for furnishing form 15CA & 15CB that have come into effect from 01st April 2016 are:

 

1. Forms 15CA and 15 CB 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. 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)

 

3. Forms 15CB will not be required at all

• Till the aggregate of remittances during the financial year does not exceed Rs. 5 lakhs.
• 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.
• Where the remittance is not chargeable to tax.

 

4. 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, Part B, Part C and Part D.

To understand these in details, read Changes in Form 15CA/ CB.

5. New Form 15CC

Quarterly statement to be furnished by an authorised dealer in respect of foreign remittances made.

 

6. Procedure for submission of Form 15CA Online w.e.f. 01.04.2016

 

• 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
• 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”
• 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
• Fill in the details and click the “Submit” button. Errors, if any, will be shown on the right panel of the Form
• 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.

 

7. Penalty

Penalty of Rs. 1 lakh for each default of non-filing for forms 15CA/CB will be applicable.

 

8. Withdrawal of Form 15CA

An option for withdrawal of Form 15CA shall be available before payment. Form 15CA can be withdrawn within 7 days of submission of the online form.

For any assistance visit: easy foreign remittance.

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