Form 15CA and Form 15CB are compliance documents required under the Income Tax Act, 1961, for remittances sent outside India.
Their primary purpose is to ensure that any payment made to a non-resident is examined for taxability before it leaves India.
These forms help the Income Tax Department track foreign remittances and prevent tax evasion on income earned by non-residents.
What Are Form 15CA and Form 15CB?
Form 15CA (Declaration of Remitter)
Form 15CA is an online declaration filed by the person making the foreign remittance. It confirms:
- The nature of payment
- Applicable provisions of the Income Tax Act
- Whether tax is deductible or not
- Details of remitter and remittee
Banks will not process most foreign remittances without Form 15CA.
Form 15CB (Certificate by Chartered Accountant)
Form 15CB is a CA certificate certifying:
- Taxability of the remittance
- Applicable TDS rate under Income Tax Act and/or DTAA
- Compliance with Section 195
- Correct nature of payment and documentation
Form 15CB is required before filing Part C of Form 15CA.
When Are Form 15CA & 15CB Required?
There are four parts in Form 15CA.
Which one you file depends on:
- Remittance amount
- Taxability
- Whether the CA certificate or the AO certificate is available
➤ Part A
Required when:
- Remittance ≤ ₹5 lakh in a financial year
- AND taxable in India
➤ Part B
Required when:
- Aggregate remittance > ₹5 lakh in a financial year
- AND an order/certificate under Section 195(2)/(3)/197 is obtained from the Assessing Officer
➤ Part C (Most common)
Required when:
- Remittance > ₹5 lakh in a financial year
- AND taxable in India
- AND the CA Form 15CB certificate is obtained
➤ Part D
Required when:
- Remittance is not taxable under the Income Tax Act
- OR covered under the specified list of 33 exempted payments (Rule 37BB)
No Form 15CB is required for Part A, B, or D.
Form 15CB is required only when Part C is applicable.
Examples of Payments Requiring Form 15CA & 15CB
- Technical service fees to a foreign company
- Royalty payments
- Import of services
- Commission to foreign agents (if taxable)
- Interest payments
- Repatriation of funds to foreign branches
Exemptions (No Form 15CA/CB Required)
The Income Tax Rules provide 33 categories of payments where Form 15CA/CB is not required, such as:
- Imports of goods
- Salary paid to foreign employees
- Business travel expenses
- Education-related remittances
- Remittance for medical treatment
- Investments abroad by individuals
These fall under Rule 37BB – Specified list.
Process for Filing Form 15CA & 15CB
Step 1: Gather Required Documents
- Remitter & remittee details
- Invoice / agreement
- Purpose of remittance
- Tax residency certificate (TRC) of the overseas beneficiary
- DTAA details
- Bank details & supporting documents
Step 2: Obtain Form 15CB from CA
The Chartered Accountant evaluates:
- Nature of payment
- Taxability under domestic law
- DTAA rate applicability
- Whether PE exists
- TDS implications under Section 195
After review, the CA uploads Form 15CB on the Income Tax Portal.
Step 3: File Form 15CA Online
- Login to Income Tax portal
- Navigate to E-file → Income Tax Forms → File Form 15CA
- Choose correct Part: A / B / C / D
- If Part C → System auto-fetches the Form 15CB submitted by the CA
Step 4: Submit Form 15CA
- Submit the form
- Download the acknowledgment PDF
Step 5: Provide Form 15CA & 15CB to the Bank
Banks require:
- Acknowledgment of Form 15CA
- PDF copy of Form 15CB
- Supporting documents
Only then does the bank processes the outward remittance.
Penalties for Non-Compliance
- Under Section 271-I:
Fine of ₹1 lakh for failure to submit Form 15CA/CB or submission of incorrect information.
- Bank may refuse the transaction without these forms.
Importance of Form 15CA & 15CB
- Ensures compliance with Section 195
- Prevents incorrect foreign remittance taxation
- Helps avoid tax notices
- Ensures correct DTAA benefit
- Acts as audit trail for cross-border payments
Documents Required by the CA for Form 15CB
- Invoice / agreement with foreign recipient
- Email confirmations
- Purpose of payment
- Beneficiary bank details
- PAN Card or foreign tax number (if any)
- TRC + Form 10F
- Nature of transaction documents
- Proof of TDS deducted (if applicable)
Conclusion
Form 15CA & 15CB filing is a crucial compliance requirement for foreign remittances from India. While Form 15CA is filed by the remitter, Form 15CB is a CA-issued certificate confirming tax implications. Careful classification of the remittance under Rule 37BB ensures proper compliance and avoids penalties.
Taxcellent assists you in filing Form 15CA-CB to comply with all the relevant transactions within statutory timelines.
