chartered accountant

Step-by-Step Guide to Filing Form 15CB for Foreign Remittances

Introduction

Form 15CB is an essential certificate issued by a Chartered Accountant (CA) for those making foreign remittances from India. This certificate verifies that all applicable taxes on the remittance have been deducted in accordance with Indian tax laws and the provisions outlined in the Double Taxation Avoidance Agreements (DTAA), when applicable. This blog outlines a step-by-step guide for filing Form 15CB under the Income Tax Act.

What is Form 15CB?

Form 15CB serves as a certification that confirms:

  • The remittance adheres to the provisions set forth in the Income Tax Act.
  • Appropriate taxes have been deducted at source (TDS).
  • The remittance aligns with relevant DTAA provisions, where applicable.

When is Form 15CB Required?

Form 15CB is required under the following circumstances:

  • When the foreign remittance exceeds ₹5 lakh within a financial year.
  • When the remittance is subject to taxation under Indian tax laws.
  • When no certificate from the Assessing Officer has been obtained for a lower or nil tax deduction.

Step-by-Step Process to File Form 15CB

Step 1: Chartered Accountant's Access

  • The remitter, whether an individual or business, must add the CA's details on the Income Tax e-filing portal.
  • The CA must have a valid registration on the e-filing portal along with a Digital Signature Certificate (DSC).

Step 2: Log in to the e-Filing Portal

  • The CA logs in to the Income Tax Department’s e-filing portal using their credentials.

Step 3: Navigate to Form 15CB

  • Go to e-File > Income Tax Forms > File Income Tax Forms.
  • Search for and select Form 15CB.

Step 4: Fill in the Required Details

The CA must provide the following information:

  • Remitter Details: Include name, PAN, address, and contact information.
  • Remittee Details: Specify the name, address, and country of the recipient.
  • Remittance Details: State the amount, currency, and nature of the remittance.
  • Tax Details: Include the applicable section of the Income Tax Act, tax rate, and amount of tax deducted.
  • DTAA Benefits: Mention any benefits claimed under DTAA, if applicable.

Step 5: Validate and Sign

  • The CA must validate all provided details.
  • The form is then digitally signed using the CA’s DSC.

Step 6: Submit Form 15CB

  • Following the signature, the CA submits Form 15CB online.
  • An acknowledgment number is generated upon successful submission.

Step 7: Filing Form 15CA by the Remitter

  • After filing Form 15CB, the remitter must complete Part C of Form 15CA on the e-filing portal, referencing the acknowledgment number from Form 15CB.

Conclusion

Filing Form 15CB is crucial for ensuring compliance with Indian tax laws, facilitating the smooth processing of foreign remittances. It is advisable to consult a Chartered Accountant for precise and timely submissions.