Form 15CA/15CB Explained: When You Need It and Why It Matters
When making payments to non-residents or foreign entities, compliance with Indian tax laws becomes crucial. Among the key documents required for such remittances are Form 15CA and Form 15CB—two essential compliance tools under the Income Tax Act, 1961 and Foreign Exchange Management Act (FEMA).
In this blog, we break down what these forms are, when you need them, and why they matter—whether you’re an individual, a business owner, or a finance professional.
What is Form 15CA?
Form 15CA is a declaration of remitter (the person making the payment) that is submitted to the Income Tax Department before remitting funds to a non-resident. It ensures that tax has been deducted (if applicable) at the correct rate before the remittance is made.
- Submitted by: The person responsible for making the foreign payment.
- Filed on: The Income Tax Department e-filing portal.
- Purpose: To prevent tax evasion and track cross-border transactions.
In simple terms: Form 15CA is a self-declaration of tax liability on foreign remittances.
What is Form 15CB?
Form 15CB is a certificate issued by a Chartered Accountant (CA) after verifying details of the remittance, applicable tax rates, Double Taxation Avoidance Agreements (DTAAs), and ensuring tax compliance.
- Issued by: A Chartered Accountant (CA).
- Required when: The remittance is taxable and exceeds a specified threshold (discussed below).
- Purpose: To act as a professional certification for tax determination on foreign remittances.
Think of it as: A CA-backed verification for your Form 15CA declaration.
When is Form 15CA/15CB Required?
| Case | Form 15CA Required? | Form 15CB Required? |
| Remittance does not require RBI approval and is not taxable in India | No (Part D of 15CA can be used) | No |
| Remittance is taxable and amount > ₹5,00,000 in a financial year | Yes | Yes |
| Remittance is taxable and amount ≤ ₹5,00,000 | Yes | No |
| Remittance is not taxable but exceeds ₹5,00,000 | Yes (Part D) | No |
| Covered under Rule 37BB exempt list (33 types) | No | No |
Structure of Form 15CA
Form 15CA has four parts:
- Part A– For taxable payments ≤ ₹5 lakh
- Part B– For taxable payments > ₹5 lakh (Form 15CB required)
- Part C– When Form 15CB is obtained for taxable payments > ₹5 lakh
- Part D– For non-taxable or exempt remittances
Step-by-Step Process to File
- Determine the nature of remittance: Taxable or non-taxable.
- Check threshold: If taxable and above ₹5 lakh, Form 15CB is needed.
- Obtain Form 15CBfrom a CA (if required).
- Log intoIncome Tax e-filing portal.
- File Form 15CAwith details of remittance and attach Form 15CB (if applicable).
- Submit the formsto your authorized dealer (usually the bank) before making the remittance.
Why Form 15CA/15CB Matters
✅ Ensures legal compliance with Indian tax regulations and FEMA.
✅ Avoids penalties for incorrect remittance procedures.
✅ Provides transparency in cross-border transactions.
✅ Helps banks and the RBI track foreign exchange movement.
✅ Required for audit trail, especially during tax scrutiny.
Consequences of Non-Compliance
Non-filing or incorrect filing of Form 15CA/15CB may attract:
- Penalty under Section 271-I: ₹1,00,000 for failure to furnish required information.
- Delay in remittance: As banks won’t process the payment without proper documentation.
- Increased scrutinyfrom tax authorities.
Common Scenarios Where These Forms Are Required
- Paying for overseas services (consulting, design, tech)
- Commission to foreign agents
- Freelancers or influencers receiving income from abroad
- Royalties or license fees
- Investments or dividends paid outside India
Final Thoughts
Navigating foreign remittances can feel complex, but understanding the importance of Form 15CA and 15CB makes compliance easier and ensures you avoid costly errors.
Always consult a qualified Chartered Accountant for proper evaluation of tax liability before making any international payment. Whether you’re an exporter, startup, or individual, this small step in compliance can save you big trouble later.
Need Help with Form 15CA/15CB Filing?
At My CA India, our tax professionals and CAs are ready to guide you through every step of foreign remittance compliance. Reach out to us for:
- Filing Form 15CA/15CB
- DTAA evaluation
- Expert tax advice for global transactions
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