Avoid These 5 Common Mistakes in 15CA-15CB Filing
15CA and 15CB forms are vital compliance documents required under the Income Tax Act for making remittances to non-residents. Even a minor mistake can delay payments or lead to penalties. Here are five common mistakes you should avoid when filing 15CA/15CB forms.
1. Filing Without a Chartered Accountant's Certificate (15CB)
The Mistake: Some taxpayers attempt to submit Form 15CA (Part C) without obtaining the required Form 15CB from a Chartered Accountant.
Why It’s a Problem: Form 15CB certifies the nature of the remittance and ensures that applicable tax laws are followed. Skipping it may lead to invalid submissions.
How to Fix It: Always consult a CA before remitting funds and get Form 15CB, where applicable.
2. Incorrect Selection of Form 15CA Part (A/B/C/D)
The Mistake: Choosing the wrong section (Part A, B, C, or D) of Form 15CA based on incorrect remittance thresholds or nature.
Why It’s a Problem: This can lead to incorrect classification and legal non-compliance.
How to Fix It: Know the difference:
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Part A: Payment ≤ ₹5 lakh, taxable
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Part B: > ₹5 lakh, already covered under a certificate/order
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Part C: > ₹5 lakh, requiring 15CB
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Part D: Not taxable under Indian law
3. Using Incorrect Details of Remitter/Remittee
The Mistake: Providing the wrong PAN, address, or bank details of either party.
Why It’s a Problem: It can delay foreign remittances or cause rejections by banks.
How to Fix It: Double-check all KYC details before uploading forms.
4. Failing to Match TDS Deductions with Filing
The Mistake: Deducting TDS but failing to match it with 15CA/15CB documentation.
Why It’s a Problem: A Mismatch can trigger a notice from the Income Tax Department.
How to Fix It: Ensure consistency across TDS return, challan payments, and 15CA/CB filings.
5. Delaying Filing Until the Last Minute
The Mistake: Waiting till the remittance date or relying on urgent bank processing.
Why It’s a Problem: Any error or delay in getting Form 15CB can hold up the entire transaction.
How to Fix It: Start the filing process at least 2–3 days before the remittance.