As globalization expands, businesses and individuals in India increasingly make payments abroad—whether for services, education, foreign investments, or purchases. However, any such foreign remittance from India must comply with Indian tax laws, especially Section 195 of the Income Tax Act, 1961 and the Foreign Exchange Management Act (FEMA).
Two important forms that ensure this compliance are Form 15CA and Form 15CB. These forms are filed electronically and are mandatory for most types of outward remittances from India.
What is Form 15CA and 15CB?
Form 15CA: Declaration by Remitter
Form 15CA is a declaration of the person making the payment (remitter) to a non-resident (outside India). It states the nature of the payment and whether tax has been deducted on it under the Income Tax Act.
- It helps the Income Tax Department track foreign remittances and tax liabilities on them.
- It is filed electronically on the Income Tax e-filing portal.
Form 15CB: Certification by Chartered Accountant
Form 15CB is a certificate issued by a Chartered Accountant (CA). It is required when the remittance exceeds a certain limit or is taxable under Indian laws.
- The CA certifies the nature of the remittance, the applicable Double Taxation Avoidance Agreement (DTAA) provisions, and whether TDS (Tax Deducted at Source) is applicable.
- This ensures that tax laws are followed properly before money leaves the country.
Why Are Form 15CA/CB Required?
These forms serve two primary purposes:
- Tax Compliance: To ensure that tax is deducted on any taxable payment to a non-resident, as required under Section 195 of the Income Tax Act.
- Regulatory Monitoring: RBI and FEMA regulations require that all foreign transactions are monitored and verified. These forms ensure transparency and traceability.
When is Form 15CA and 15CB Required?
Form 15CA is required for all foreign remittances, except:
- Payments that are not chargeable to tax and are listed in Rule 37BB (33 categories) like travel, gifts, education, etc.
- Transactions below ₹5 lakh in aggregate in a financial year don’t require 15CB, but 15CA (Part A) still needs to be filed.
Form 15CB is required when:
- The payment is taxable under Indian law.
- The amount exceeds ₹5,00,000 in a financial year.
- The remittance is not covered under the specified list in Rule 37BB.
Types of Form 15CA: Parts A, B, C, D
Form 15CA has 4 parts based on the value and taxability of the transaction:
| Part | When Applicable |
|---|---|
| Part A | When remittance ≤ ₹5 lakh and taxable |
| Part B | When remittance > ₹5 lakh and covered under DTAA, and a certificate (under Section 195(2)/(3)/197) is obtained |
| Part C | When remittance > ₹5 lakh and taxable; requires Form 15CB |
| Part D | When remittance is not taxable under Indian law and falls under 33 specified categories in Rule 37BB |
Examples of Transactions Requiring 15CA/15CB
| Purpose of Remittance | 15CA | 15CB |
|---|---|---|
| Software/Consulting services to foreign client | Yes | Yes (if > ₹5 lakh) |
| Import of goods | No (Rule 37BB) | No |
| Foreign education fees | Yes (Part D) | No |
| Commission to foreign agent | Yes | Yes |
| Investment in foreign subsidiary | Yes (depends on amount) | Yes (if > ₹5 lakh) |
Procedure to File Form 15CA Online
Step 1: Login to e-Filing Portal
Visit www.incometax.gov.in
Login with your PAN and password.
Step 2: Navigate to ‘e-File’ > ‘Income Tax Forms’ > ‘File Income Tax Forms’
Search and select Form 15CA from the list.
Step 3: Choose the Appropriate Part (A/B/C/D)
Based on your transaction amount and taxability.
Step 4: Fill Details
- Remitter & Remittee information
- PAN, address, country, bank details
- Nature of remittance
- Amount and currency
- TDS details (if applicable)
Step 5: Upload Form 15CB (if required)
If you selected Part C, you must upload the acknowledgment number of Form 15CB issued by a CA.
Step 6: Submit & E-verify
Verify the form using Aadhaar OTP, DSC, or Net Banking. A confirmation will be generated.
Procedure to File Form 15CB
Form 15CB is filled by a Chartered Accountant through their e-Filing portal login.
Details required:
- Remitter’s PAN and bank info
- Remittee’s details
- Nature and purpose of remittance
- Amount, currency, and TDS rate
- Applicable DTAA provisions (if any)
- Certificate under Section 195 (if obtained)
Once filled and submitted, an acknowledgment number is generated, which the remitter uses in Form 15CA (Part C).
Documents Required for 15CA/15CB
- PAN of remitter
- Invoice for the foreign transaction
- Bank details and remittance amount
- Purpose of remittance (contract, agreement, invoice)
- DTAA documents (if applicable)
- TDS challan (if tax deducted)
- Any lower deduction certificate under Section 195/197
Who Can Certify Form 15CB?
Only a Chartered Accountant registered with the Income Tax Department and who has access to the CA Login on the e-Filing portal can certify and file Form 15CB.
Consequences of Non-Compliance
Failure to file Form 15CA/CB or wrong filing can lead to:
- Penalties up to ₹1 lakh under Section 271-I of the Income Tax Act.
- Rejection of remittance by the bank.
- Legal scrutiny or audits under FEMA or Income Tax Act.
- Delay in international business or personal payments.
Hence, it is vital to consult a CA or tax advisor for such remittances.
Updates as per Latest Rules (as of 2025)
- Digital submission of both 15CA and 15CB is mandatory.
- Real-time sharing of data between banks and tax authorities is increasing.
- Remittances under Liberalised Remittance Scheme (LRS) like foreign travel, tuition fees, investments are closely monitored.
- Aadhaar-PAN linking is necessary to validate remitter identity.
FAQs on Form 15CA/CB
Q1: Do I need both forms for every foreign remittance?
No. It depends on the amount, taxability, and whether the transaction falls under Rule 37BB.
Q2: Who should file Form 15CA?
The person remitting the money (payer) is responsible for filing Form 15CA.
Q3: Can I revise or withdraw a submitted Form 15CA?
Yes, within a limited time and if the remittance hasn’t been made yet. A new form must be filed.
Q4: What if the bank doesn’t ask for these forms?
Banks are required by RBI to collect these forms before processing remittances. If not asked, they may be violating compliance norms.
Q5: Can I use one 15CB for multiple payments?
No. A new 15CB and 15CA must be filed for each remittance unless it’s a recurring payment under a single contract (even then, prior approval may be needed).
Conclusion
Forms 15CA and 15CB are vital components of the Indian tax system to ensure that foreign remittances are lawful, compliant, and taxable when necessary. Whether you’re an individual paying for foreign services or a business sending money to a vendor overseas, it’s crucial to understand the applicability of these forms.
Always consult a Chartered Accountant to ensure correct classification, TDS deduction, and compliance with DTAA and FEMA laws. Mistakes or non-filing can lead to serious legal and financial consequences.