ALL YOU NEED TO KNOW ABOUT 15CA AND 15CB CERTIFICATE

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It is known to everyone that a banker will ask for Form 15CA certificate and 15CB certificate, while making foreign payments. 15CA certificate is required to be furnished by a person who is willing to make payment to non-resident, any sum chargeable to tax under the provisions of Income Tax Act. The Individual who are transferring their funds from NRO Account to NRE account also required to file Form 15CA and get 15CB Certificate from Chartered Accountant. The Assessee should furnish relevant information in the below mentioned parts.

  1. The information in Part A of Form No. 15CA, if the amount of payment or the aggregate of such payments, as the case may be, made during the financial year does not exceed INR 5,00,000.

  2. For payments other than the payments referred in clause (i), the information —

a. in Part B of Form No. 15CA after obtaining —
i. a certificate from the Assessing Officer under section 197, or
ii. an order from the Assessing Officer under sub-section (2) or sub-section (3) of section 195.
b. In Part C of Form No. 15CA after obtaining a certificate in Form No. 15CB from an Chartered Accountant as defined in the Explanation below sub-section (2) of section 288. So, it was clear from this point that the person should get certificate from Chartered accountant when the amount of Payment exceeds INR. 5,00,000.
3. The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum which is not chargeable under the provisions of the Act, shall furnish the information in Part D of Form No.15CA.
Notwithstanding anything contained in sub-rule (iii), no information is required to be furnished for any sum which is not chargeable under the provisions of the Act, if —
(a) the remittance is made by an individual and it does not require prior approval of Reserve Bank of India as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000; or
(b) the remittance is of the nature specified in column (3) of the specified list below:

Points to be considered for filing 15CA Certificate:-

(A)  The information in Form No. 15CA shall be furnished,—

    • electronically under digital signature in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8) and thereafter printout of the said form shall be submitted to the authorized dealer, prior to remitting the payment;
    • electronically in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8) and thereafter signed printout of the said form shall be submitted to the authorized dealer, prior to remitting the payment.

(B) An income-tax authority may require the authorized dealer to furnish the signed printout of Form No. 15CA referred to in clause (ii) of sub-rule (4) for the purposes of any proceedings under the Act.
(C) The certificate in Form No. 15CB shall be furnished and verified electronically in accordance with the procedures, formats and standards specified by the Principal Director-General of Income-tax (Systems) under sub-rule (8).
(D) The authorized dealer shall furnish a quarterly statement for each quarter of the financial year in Form No. 15CC to the Principal Director General of Income-tax (Systems) or the person authorized by the Principal Director General of Income-tax (Systems) electronically under digital signature within fifteen days from the end of the quarter of the financial year to which such statement relates in accordance with the procedures, formats and standards specified by the Principal Director General of Income-tax (Systems) under sub-rule (8).
(E) The Principal Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of Form 15CA, Form 15CB and Form 15CC and shall be responsible for the day-to-day administration in relation to the furnishing and verification of information, certificate and quarterly statement in accordance with the provisions of sub-rules (4), (6) and (7). Hope this article helped you understand the provisions related to Form 15CA and 15CB Certificate. We are Chartered Accountants in Bangalore who deal with cases like these. So, if you have any doubts regarding these cases then feel free to get in touch with us.

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