15CA -15CB Filing in India
15CA -15CB Filing
In today’s globalized world, businesses and individuals in India often make payments to non-residents for various purposes such as professional services, royalties, interest, or investment returns. Under the Indian Income Tax Act, making foreign remittances requires strict compliance, including the filing of Form 15CA and, in certain cases, Form 15CB.
Filing Form 15CA and Form 15CB is mandatory for ensuring that taxes are correctly deducted and remitted when payments are made to foreign entities or individuals. These forms act as declarations and certifications that the applicable tax has been paid on the amount being remitted outside India.
At FilingsPro Legal, we offer professional 15CA-15CB filing services in India to help businesses and individuals comply with this critical requirement. Our team of experienced tax consultants ensures that your filings are prepared accurately, submitted on time, and fully compliant with Indian tax laws.
Form 15CA
Form 15CA is a declaration of remitter, stating that tax on the payment made to a non-resident has been deducted and paid as per Indian tax laws. It is filed online with the Income Tax Department before making the remittance.
Form 15CB
Form 15CB is a certificate issued by a Chartered Accountant (CA). It certifies that the remittance is chargeable to tax under the provisions of the Income Tax Act and that the appropriate tax has been deducted. It also verifies compliance with Double Taxation Avoidance Agreements (DTAA), if applicable.
Filing these forms is mandatory under Section 195 of the Income Tax Act. Banks in India cannot process foreign remittances without the proper submission of Form 15CA (and Form 15CB where applicable).
The primary purposes of this filing are:
To ensure that tax due on foreign remittances is correctly deducted and paid.
To enable the Income Tax Department to track foreign remittances.
To prevent tax evasion on international transactions.
Payments to foreign consultants or professionals.
Royalty payments.
Purchase of technical services.
Commission payments to foreign agents.
Interest payments to non-residents.
Import of services.
Dividend payments to foreign shareholders.
Any other taxable foreign remittances.
Mandatory Filing: Required for all taxable foreign remittances.
Tax Deduction: TDS must be deducted as per Section 195 before remittance.
Bank Requirement: Banks require 15CA/15CB to process the transaction.
DTAA Applicability: Proper review of DTAA benefits to avoid double taxation.
Correct Reporting: Any incorrect or missed reporting can lead to penalties.
PAN of the remitter.
PAN of the recipient (if available).
Agreement or invoice related to the foreign payment.
Bank details for remittance.
Purpose of remittance.
Nature of transaction.
Amount of remittance.
TDS computation and payment challan.
DTAA documents (if applicable).
Fillup From
