What is Form 15CB?

What is Form 15CB?

Form 15CB is a certification issued by a Chartered Accountant (CA) for payments made to a Non-Resident (excluding companies) or a Foreign Company when such payments are taxable in India. It serves as a Tax Determination Certificate, wherein the CA assesses whether the remittance is subject to taxation under the Income Tax Act, 1961 or under a Double Taxation Avoidance Agreement (DTAA).

The form includes details such as:

• Nature of remittance
• Applicable tax rate
• TDS deduction details
• Relevant tax provisions (Income Tax Act and DTAA)

This certification ensures that the correct tax treatment is applied before processing the foreign payment.
 

Applicability of Form 15CB

Form 15CB is not required for every foreign remittance. It is mandatorily required only when the following conditions are met:

1. The payment is made to a non-resident individual or a foreign company.
2. The remittance is taxable in India.
3. The total remittance exceeds ₹5 lakh in a financial year.
4. There is no specific exemption under the Income Tax Act or a DTAA agreement.
5. The Assessing Officer (AO) has not issued a tax clearance certificate.

If the remittance is non-taxable, Form 15CB is not required. Instead, taxpayers can submit Form 15CA (Part D) directly.
 

Difference Between Form 15CA and Form 15CB

Both Form 15CA and Form 15CB are used to track foreign remittances, but they serve distinct purposes:

Key Takeaway: If a remittance exceeds ₹5 lakh and is taxable, Form 15CB must be obtained from a CA before filing Form 15CA (Part C).
 

Structure of Form 15CB

Form 15CB comprises six essential sections that must be filled in before submission:

Certification

This section contains the CA’s declaration certifying that tax determination has been performed as per Indian tax laws.

Remittee (Recipient) Details

Here, details of the recipient (non-resident entity) are entered, including:

• Name
• Address
• Country
• Tax Identification Number (if applicable)

Remittance Details

This section captures the details of the payment, such as:

• Remittance amount
• Currency
• Purpose of remittance
• Bank details

Taxability Under Income Tax Act (Without DTAA Relief)

The CA must indicate whether the remittance is chargeable to tax in India by selecting Yes or No.

Taxability Under Income Tax Act (With DTAA Relief)

If DTAA benefits apply, the CA must provide:

• Article number under DTAA
• Applicable tax rate
• Final tax liability

Accountant Details

The CA provides their details, including:

• Name
• Firm Name
• Membership ID
• Address
   

Step-by-Step Process to File Form 15CB Online

Filing Form 15CB online involves both the taxpayer (remitter) and the Chartered Accountant. Here’s how it works:

Step 1: Assigning the Form to a CA

The taxpayer logs into the Income Tax e-Filing portal.
Under Authorised Partners, they navigate to My Chartered Accountant.
The taxpayer adds the CA’s membership number and assigns Form 15CB.

Step 2: CA Logs In and Fills Form 15CB

The CA logs into the Income Tax portal using their credentials.
They select Form 15CB from the File Income Tax Forms section.
They enter the taxpayer’s PAN and validate it.
They fill in remittance details, taxability, and DTAA provisions (if applicable).

Step 3: e-Verification and Submission

The CA previews the form and clicks on Proceed to e-Verify.
They enter the Unique Document Identification Number (UDIN) (optional).
They e-verify the form using a Digital Signature Certificate (DSC).
Upon submission, a Transaction ID and Acknowledgement Number are generated.

Important Considerations While Filing Form 15CB

To ensure a hassle-free filing process, keep the following points in mind:

Ensure that the CA is registered on the e-Filing portal

• The CA must have an active PAN and a valid DSC linked to their profile.

Verify taxability before submission

• If the remittance is non-taxable, Form 15CB is not required.
• Incorrect submission may lead to compliance issues.

Check DTAA applicability

• If the recipient’s country has a DTAA with India, ensure that the lower tax rate is applied.

Ensure Aadhaar-PAN linkage

• If the taxpayer’s PAN is not linked to Aadhaar, the CA may receive a notification preventing submission.

Keep records for future reference

• Once Form 15CB is submitted, keep the Transaction ID and Acknowledgement Number for future audits.

Conclusion

Form 15CB is a crucial compliance requirement for businesses and individuals making foreign remittances exceeding ₹5 lakh. By ensuring that the correct tax provisions and DTAA benefits are applied, this form helps prevent tax evasion and ensures transparency in cross-border transactions.

For a seamless process:

• Always consult a qualified Chartered Accountant before initiating remittances.
• Verify whether the remittance is taxable or exempt under tax laws.
• Ensure all necessary documents and bank details are in place before filing.

By following these guidelines, you can ensure compliance while avoiding unnecessary tax liabilities or penalties.