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Applicability of form 15ca and 15cb

Madhur Marwaha (CA Job) (24 Points)

16 May 2015

Dear frnds..

Please let me know whether there is any recent circular or amendment in Income Tax or any provision which says the Banks need not to accept the Form 15CA and 15CB if the remittances are to any Nepal Resident. I have checked all the 28 items of rule37BB and also the payments are exceeding the threshold limit of 250000 per annum, so I am unable to understand why Bank is refusing to accept Form 15CA and 15CB.

Thanks in advance....

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2 Replies

Vijendran R (SR AUDIT OFFICER (Retd)) (44 Points)
Replied 22 December 2015

Rule 37BB has been amended by a notification issued on 16/12/2015 and effective from 01/04/2016 and details are as follows:

Form 15CA for remittance particulars and Auditors' Certificate in 15CB are not required to be furnished by an individual for remittance which do not require RBI approval under its LRS. Further, the list of payments of specified nature mentioned in Rule 37 BB which do not require submission of Forms 15CA and 15CB has been expanded from 28 to 33 including payments for imports. A CA certificate in Form No. 15CB will be required to be furnished in the format indiated in PART C only in respect of such payments made to non-residents which are chargeable to tax and the amount of payment during the year exceeds Rs. 5 lakh. For remittances upto 5 lakhs which are chargeable to tax are required to be furnished in PART A but no certificate from CA in form 15 CB is necessary in such cases.However, payments made to non-residents which are not chargeable to tax and also not in the list of 33 specified items are required to be furnished in PART D of form 15CA.

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Roodita Gaikwad (Practice) (4526 Points)
Replied 22 April 2025

As per the Income Tax Act and Rule 37BB, remittances to Nepal residents are generally subject to Form 15CA and 15CB compliance, especially when the amount exceeds the threshold limit of ₹2,50,000 per annum. However, the bank may refuse to accept Form 15CA and 15CB due to some internal compliance issues or lack of proper verification in their system, especially in cases of cross-border remittances.

There is no recent circular or amendment exempting Nepal from submitting Form 15CA and 15CB, and the remittance will typically follow the same rules as those for any other foreign country unless there's a specific bilateral agreement or relaxation that applies to Nepal. If the bank is rejecting it, you might want to check the bank's internal policy or request further clarification from them.

To streamline the process and ensure compliance, you can use our Excel-based utility to generate Form 15CA and 15CB XML in bulk, making the filing process much easier and faster.