Last updated: December 29th, 2022 11:24 AM

Form 15CA - Income Tax

It is not just individuals who are required to ensure that all the essential and accurate procedures are followed and forms are submitted for filing taxes. Banks and Financial Institutions are also deemed to follow specific rules that would give the Income Tax Department the upper hand when it comes to determining the taxable amounts of Non-Resident Indians. This article talks about Income Tax Form 15CA which banks utilise to report the payments chargeable to tax.

Form 15CA

Income Tax Form 15CA is a declaration of a remitter and is used as a medium to collect information regarding the payments which are chargeable to tax in the hands of a recipient non-resident. This Form helps the Income Tax Department to keep track of foreign remittances and their taxability. As per Income Tax Rule 37BB, it is the responsibility and the duty of authorised banks or dealers to ensure that they obtain such forms from a remitter. Income Tax Form 15CA is required to be filed only if the remittances is chargeable to tax within India. If the remittances or payment is not liable to Non-Resident Indians, then the Form 15CA is not required to be filed. However, a customer may submit a declaration in the form of a note to the bank stating the nature of the payment and the reason as to why the same is not chargeable under tax in order to be exempted from the submission of Form 15CA.

Information required to file Form 15CA

The following are the details required to file Income Tax Form 15CA.

• Details of the Remitter
  • Name of the remitter
  • Address of the remitter
  • Principal place of business of the remitter
  • PAN of the remitter
  • E-Mail address and phone no. of the remitter
  • Status of the remitter (firm/company/other)
• Details of the Remittee
  • Name and status of the remittee
  • Address of the remittee
  • Principal place of business of the remittee.
  • Country of the remittee (country to which the remittance is made)
• Details of the Remittance
  • Country to which remittance is made.
  • Amount of remittance in Indian currency.
  • Currency in which remittance is made.
  • Nature of the remittance as per agreement (invoice copy to be asked from a client).
  • Proposed date of remittance
• Bank details of the Remitter
  • Name of the bank of the remitter
  • Name of the branch of the bank
  • BSR Code of the bank
• Other Details
  • Designation of the signing person
  • Father’s name of the signing person
• Documents required from the Remittee
  • A duly filled Income Tax Form 10F by the authorised individual of the remittee.
  • Tax residency certificate from the proper Remittee/ Tax registration of the country in which the Remittee is registered.
  • Certificate that proves the Remittee does not have any permanent establishment within India.

This is deemed mandatory if the income is a business income and not chargeable to tax according to the DTAA if there is no permanent establishment within India. Note: This is essential in the case of any benefit under DTAA is taken, whether by way of a lower rate of deduction of tax at source or no deduction of tax at source according to DTAA.

Procedure to File Form 15CA

The steps mentioned below are to be followed while filing Income Tax Form 15CA on the official Income Tax Department website. Step 1: Visit the Income Tax Department website. Step 2: Log in to the relevant account with the appropriate login credentials. Step 2 - Income Tax Form 15CA Step 2A - Income Tax Form 15CA Step 3: Click on the e-File tab and select the Income Tax Forms tab from the drop-down menu. Step 3 - Income Tax Form 15CA Step 4: Select Form 15CA from the drop-down menu and click on the Continue tab. Step 4 - Income Tax Form 15CA Step 4A - Income Tax Form 15CA Step 5: Select the Type of Form 15CA applicable to the user from the drop-down menu. Step 5 - Income Tax Form 15CA Step 5A - Income Tax Form 15CA Step 6: Complete the Form 15CA and click on the Submit icon to complete the process. Note: It is deemed mandatory to upload Form 15CB before filing Part C of Form 15CA. The acknowledgement number of the e-Filed Form 15CB must be provided in order to prefill the details in Part C of Form 15CA. After the process is completing, the user would receive a message indicating successful filing on the screen and a confirmation email in the user's registered email account.

Amendments for Filing Form 15CA

The following are the amendments that are made to the procedure of filing Form 15CA.

• Income Tax Form 15CA would not be required to be furnished by an individual if the remittance does not require the Reserve Bank of India's (RBI's) approval under its Liberalized Remittance Scheme (LRS).
• The list of payments of specific nature under Income Tax Rule 37BB where submission of Income Tax Form 15CA is not necessary has been extended from 28 to 33.

Non-Requirement for Form 15CA

The following are the latest list of payments when the Income Tax Form 15CA is not required to be furnished.

Serial Number	Nature of the Payment	RBI Purpose Code
1	Indian investment abroad: in equity capital (shares)	S0001
2	Indian investment abroad: in debt securities	S0002
3	Indian investment abroad: in branches and wholly owned subsidiaries	S0003
4	Indian investment abroad: in real estate	S0004
5	Indian investment abroad – in real estate	S0005
6	Loans extended to Non-Residents	S0011
7	Advance payment against imports	S0101
8	Payment towards imports: settlement of the invoice	S0102
9	Imports by diplomatic missions	S0103
10	Intermediary trade	S0104
11	Imports below INR 5,00,000: (For use by ECD offices)	S0190
12	Payment for operating expenses of Indian shipping entities operating abroad	S0202
13	Operating expenses of Indian Airline companies operating abroad	S0208
14	Booking of passages elsewhere: Airline companies	S0212
15	Remittance towards business travel	S0301
16	Travel under basic travel quota (BTQ)	S0302
17	Trip for pilgrimage	S0303
18	Travel for medical treatment	S0304
19	Travel for education including fees, hostel expenses and so on.	S0305
20	Postal services	S0401
21	Construction of projects abroad by Indian entities including import of goods at the project site.	S0501
22	Freight insurance: relating to import and export of goods	S0602
23	Payments for maintenance of offices abroad	S1011
24	Maintenance of Indian embassies abroad	S1201
25	Remittances by foreign embassies in India	S1202
26	Remittance by Non-Resident Indians towards family maintenance and savings	S1301
27	Remittance towards personal gifts and donations	S1302
28	Remittance towards donations to charitable and religious institutions abroad.	S1303
29	Remittance towards donations and grants to other Governments and charitable institutions established by the Governments	S1304
30	Donations or contributions by the Government to international institutions	S1305
31	Remittance towards payment or refund of taxes	S1306
32	Refunds, rebates or reduction in the invoice value on account of exports	S1501
33	Payments by residents for international bidding.	S1503

Details in the Form 15CA

Four parts of Income Tax Form 15CA are given below. Certain parts of the Form 15CA is required to be filled appropriately depending on the amount and taxability of the remittance.

Part of the Form	Description
Part A	If the remittance is taxable and the total value of such payments during a Financial Year is less than INR 5 Lakhs.
Part B	If the remittance is taxable and the total value of such payments during the Financial Year is more than INR 5 Lakhs and order or a certificate under Section 195(2)/ 195(3)/ 197 of the Income Tax Act has been received from the Assessing Officer.
Part C	If the remittance is taxable and the total value of such payments during the Financial Year is more than INR 5 Lakhs, and a certificate in Form No. 15CA from an accountant as defined in the explanation below the sub-section (2) of Section 288 has been obtained.
Part D	To be filled up if the remittances are not taxable other than the payments referred to in the Rule 37BB(3) by the individual referred to in the Rule 37BB(2).

Information to be furnished for payments to a nonresident not being a company, or to a foreign company.

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