Income-tax Form 15CA and 15CB New Format

In the ever-evolving landscape of financial transactions, Form 15CA and 15CB play a pivotal role, especially for businesses engaged in international transactions. Recently, there have been updates to the format of these forms, and understanding these changes is crucial for compliance and smooth transactions. In this comprehensive guide, we will look into the details of the new format for Form 15CA and 15CB, providing businesses with the information they need for seamless international financial dealings.

Overview of Form 15CA and 15CB

Understanding the Purpose

Form 15CA and 15CB are statutory forms under the Income Tax Act of India, required for making remittances to non-residents. These forms are essential for ensuring that tax is deducted at the source and that the transaction adheres to Indian tax laws. Form 15CA is a declaration made by the remitter, while Form 15CB is a certificate issued by a chartered accountant.

Significance in International Transactions

Both forms play a crucial role in facilitating and regulating cross-border transactions. They help in tracking and ensuring that the appropriate taxes are deducted at the source, preventing tax evasion and promoting transparency in international financial dealings.

Changes in the New Format

Digital Transformation

One of the significant changes in the new format is the move towards digitisation. The revamped forms leverage technology to streamline the submission process, making it more efficient and reducing paperwork. This aligns with the broader trend of digital transformation in financial and regulatory processes.

Mandatory E-Filing

Under the new Format, e-filing of Form 15CA and 15CB becomes mandatory. This shift to electronic filing not only enhances the speed of processing but also reduces the chances of errors associated with manual data entry. Businesses need to adapt to this digital requirement for compliance.

Detailed Analysis of Form 15CA

Particulars of Remitter and Recipient

The new format retains the need for detailed information about the remitter and the recipient. This includes names, addresses, and PAN (Permanent Account Number) or TAN (Tax Deduction and Collection Account Number) details. Ensuring accuracy in these particulars is crucial for avoiding discrepancies in the transaction process.

Nature of Remittance

The nature of remittance must be specified in the form. Whether it is for business transactions, salary, dividends, or any other purpose, this information helps in categorising the transaction correctly for taxation purposes.

Details of Tax Deduction

Form 15CA requires the remitter to provide details of the tax deduction under the relevant sections of the Income Tax Act. This includes the section under which tax is deducted, the rate of deduction, and the amount of tax deducted. Precision in providing these details is essential for compliance.

In-Depth Examination of Form 15CB

Certification by a Chartered Accountant

Form 15CB involves the certification of the transaction by a chartered accountant. The new format maintains this requirement, emphasising the need for professional validation of the transaction details. Chartered accountants play a crucial role in ensuring the accuracy and compliance of the information provided in Form 15CB.

Detailed Information on Remittance

The chartered accountant is responsible for verifying the details of the remittance, ensuring that it aligns with the provisions of the Income Tax Act. This includes a thorough examination of the purpose of remittance, the nature of the transaction, and the applicable tax rates.

Compliance with Double Taxation Avoidance Agreements (DTAA)

If the transaction is eligible for benefits under a Double Taxation Avoidance Agreement, the chartered accountant certifies the compliance with the terms of the agreement. This is a critical aspect, as it can impact the tax liability on the remittance.

Common Mistakes to Avoid

Incorrect Details

One of the most common mistakes is providing incorrect details in Form 15CA and 15CB. Inaccuracies in remitter and recipient information, nature of remittance, or tax deduction details can lead to delays and complications in the transaction process.

Non-Compliance with New E-Filing Requirement

Businesses must ensure that they adapt to the mandatory e-filing requirement for Form 15CA and 15CB. Failure to comply with this digital transformation can result in non-compliance with regulatory norms and potential penalties.

Lack of Professional Certification

Failing to obtain the required certification from a chartered accountant for Form 15CB can be a costly mistake. Professional validation is essential for ensuring that the transaction aligns with tax regulations and avoids legal complications.

Best Practices for Efficient Form Submission

Engage with Chartered Accountants

Collaborating with experienced chartered accountants is crucial for ensuring the accurate and compliant submission of Form 15CB. Their expertise in tax regulations and international transactions adds value to the certification process.

Leverage Technology Platforms

Explore technology platforms that facilitate the e-filing of Form 15CA and 15CB. These platforms often provide a user-friendly interface, ensuring that businesses can navigate the digital submission process with ease.

Regular Updates and Training

Stay informed about changes in tax regulations and the forms’ formats. Regular training sessions for relevant personnel ensure that they are well-versed with the latest requirements and can efficiently handle the submission process.

Future Trends and Adaptability

Integration with Financial Systems

The future of Form 15CA and 15CB may involve closer integration with businesses’ financial systems. This integration aims to streamline the extraction of transaction details and enhance accuracy in form submission.

Continued Emphasis on Digital Processes

As technology continues to advance, the emphasis on digital processes is likely to grow. Businesses should anticipate further updates to the forms’ format and be prepared to adapt to future digital requirements for financial transactions.

Procedure to File Form 15CA and 15CB Online

Form 15CA

Step-by-Step Process to File Form No.15CA – Part A, B and D (Online mode)

Form No. 15CA is filed electronically on the Income Tax e-filing portal and is verified either using a digital signature or electronic verification code (EVC).

First, you are required to add your Chartered Accountant

Select ‘Authorised Partners’ tab, click on ‘My Chartered Accountant (CA) from the drop-down menu
You will be directed to a page ‘My Chartered Accountant(s)’. Click on ‘Add CA’ option
You will then be prompted to add the ‘Membership Number of the CA’
Click on ‘Add’ and you would be required to give a ‘Confirmation’
A message displaying ‘Request for adding CA has been submitted successfully, it is pending for acceptance by the CA’ will appear

Process of e-filing Form No. 15CA

Log in to the e-Filing portal and go to “e-File” > ‘Income tax Forms’ > ‘File Income Tax Forms’ > “File Form 15CA”
(You will be directed to a page ‘File Income Tax Forms’, click on ‘Others (Source of Income not relevant)’ and choose Form No. 15CA. Alternatively, you can also type Form No. 15CA in the search box and locate it)
Now on the ‘Instructions’ page, click on ‘Let’s Get Started’
In the page ‘Information for payment to Non-Resident’, enter the ‘Filing type’, that is ‘Original/Revised’ and select the financial year and click on ‘Continue’
From Part A, B and C, you are required to select the applicable part in Form No. 15CA.
- For example, Part A is applicable where remittance is below Rs 5 lakh during a financial year.
- Similarly, Part B is applicable when you have received assessing officer (AO) approval under Section 195(2), 195 (3) or 197.
- On the other hand, Part C is applicable in cases where the remittance or the aggregate of such remittance exceeds Rs 5 lakh during a financial year and a certificate in Form No. 15CB from an accountant required.
- Finally, Part D is applicable where remittance is not taxable under the ITA and no withholding tax is required to be deducted.

Part-A

You need to enter details of the remitter (sender), remittee (recipient), and remittance (fund transfer details). There is no requirement for Form No. 15CB from a CA. Finally, you would be required to submit the verification

Part-B

In Part B as well, you are required to key in details related to remitter, remittee and remittance. The only difference is that you need to provide AO Order details as well. Also, there is no requirement for Form No. 15CB

Part-C

In Part-C, you would be required to furnish details about the chartered accountant (CA) and related attachments. This is apart from the remittee and remittance details
After filling in all the relevant details, you are required to click on ‘Assign to CA’
Once you click on ‘Yes’ to give your confirmation, a message will come up stating ‘Assigned to the CA successfully’
Go to the Dashboard and click on ‘Pending Actions’
You will be able to see Form No. 15CB, which your CA has uploaded. You can either accept or reject Form No. 15CA
If you click on ‘Accept’, you will be directed to the ‘e-Verify page’. Once you have e-verified the Form No. 15CA using DSC or EVC, a message ‘Submitted Successfully’ will pop up

Part-D

In Part D, you will be required to key in details about the remitter, which includes name, PAN, remitter status, residential status, contact and address details. In Part D, verification of the person submitting Form No. 15CA is also required. Click on the ‘Save’ option
You need to furnish the details of remittee. Followed by this, you would need to give the remittance details
Finally, ‘Verify’ the details and click on ‘Preview’
After cross-checking all the details under ‘Preview’, you are required to e-Verify the form using a digital signature certificate (DSC).

Once the e-Verification process is complete, a success message is displayed with a Transaction ID and Acknowledgement Number. You are required to keep a note of the Transaction ID and Acknowledgement Number. A confirmation message will be sent on your email ID and mobile number registered with the income tax e-filing portal

Form 15CB

The “Add CA” requisite has to be completed first.
Under the “My Account” tab, the “Add CA” option is to be selected.
Here, the Membership Number of the CA has to be entered.
The Form number is to be entered next as 15CB.
Since the CA has now been added successfully, the rest of the process may be completed by the CA himself.
The user account of the CA must be registered on the site as a CA and not as a regular account.
On the “Downloads” page, the Form 15CB Utility has to be downloaded. This is because the .xml file needs to be uploaded for the successful submission of the Form 15CB.
Once the download is complete, the .xml file has to be prepared offline and ready for upload.
On the site, under the “e-File” option, click on the “Upload Form” button and enter the following details:
- PAN of the Assessee
- PAN of the CA
- Form Name – 15CB
- Filing Type – Original
Next, the prepared .xml file is to be uploaded and generated through the Utility.
The DSC Management Utility has to be downloaded as well. This is beneficial in uploading the Digital Signature File in order for the submission to be complete in all respects.
Click on the “Submit” button and await the Success page.
View the form:
- Once the Form 15CB has been uploaded and successfully submitted by the CA, the assessee may then log in and view the form under the “Worklist” tab by selecting the “For Your Information” button.
- The status of the Form will be displayed as the case may be.

Procedure to File Form 15CA and 15CB Offline/ Bulk Mode

Part A and B (Taxpayer):

Log in to the e-Filing portal and go to “e-File” > “Income Tax Forms” > “File Form 15CA.
Fill in basic details: PAN/TAN is auto-populated, financial year, filing type and submission mode as “Offline/Bulk”.
Download the Form 15CA Offline Utility: get it from the “Downloads” section on the Income Tax Forms page.
Prepare individual XML files for Remitter, Remittee, and CA (only for Part-C). Zip all the XML files. For Part-C: Import the Form 15CB XML submitted by your CA (downloadable from View e-Filed Forms).
Upload the zipped file and submit. You’ll get a Token Number.
Check the status of your submission: Go to “e-File” > “View Form 15CA Offline/Bulk. See if your XMLs were successful (Acknowledgement Number generated) or failed (reasons shown).
If failed: Reasons for failure will be displayed. Re-upload the corrected XML with validations/data fixed. You can download an export showing ARN number, status, and XML filename for failed files.

Form 15CB (Offline/Bulk Mode):

Appointing your CA:

Log in to the e-Filing portal and go to “My Chartered Accountant(s)” under “Authorised Partners.
Add your CA: Provide their membership number and assign Form 15CB. Do this once per financial year.

Part A and B (CA):

Log in to the e-Filing portal and go to “e-File” > “File Form 15CB.
Fill in basic details: User ID, PAN, “Offline/Bulk” submission, and financial year.
Download the Form 15CB Offline Utility or get it from the “Downloads” section on the Income Tax Forms page.
Prepare individual XML files for Remitter, Remittee, and CA. Zip the files.
Upload the zipped file and submit using your Digital Signature Certificate (DSC). You’ll get a Token Number.
Check the status of your submission: Go to “e-File” > “View Form 15CB Offline/Bulk. See if your XMLs were successful (Acknowledgement Number generated) or failed (reasons shown).
If failed: Re-upload the corrected XML with validations/data fixed. You can download a PDF of successful submissions and an export showing ARN number, status, and XML filename for failed files.

The submission of forms such as these, in reality, aren’t as complicated and tedious as they are normally believed to be. Moreover, the option of withdrawing the form presents the opportunity to retract the form when necessary.

Form 15CA and 15CB New Format: Introduction