15CA and 15CB Filing for Foreign Remittances
Every time you transfer money overseas - to pay a foreign vendor, a non-resident employee, or a foreign subsidiary - you must comply with Section 195 of the Income Tax Act. That means filing Form 15CA, and in many cases obtaining a CA-certified Form 15CB, before the bank will process the wire transfer.
Overview
Forms 15CA and 15CB are declarations submitted on the income tax e-filing portal that confirm the applicable taxes on a foreign remittance have been assessed and, where required, deducted. Banks are legally required under Rule 37BB of the Income Tax Rules to collect these forms before processing most foreign outward remittances.
- Form 15CA is filed by the remitter (the person or company sending money abroad).
- Form 15CB is a certificate from a Chartered Accountant confirming the tax treatment of the payment. It must be uploaded by the CA on the portal before you can file the relevant part of Form 15CA.
- Both forms are filed on the Income Tax e-filing portal (incometax.gov.in), not on paper.
- The bank requires copies of the submitted forms before it processes the SWIFT transfer.
Form 15CA - Parts and When to Use Them
| Part | When Used | CA Certificate Required? |
|---|---|---|
| Part A | Payment up to ₹5 lakh per transaction in a financial year, and the payment is taxable in India | No |
| Part B | Payment exceeds ₹5 lakh and the remitter has obtained an order or certificate from the Assessing Officer under Section 195(2), 195(3), or 197 | No - AO certificate is used instead |
| Part C | Payment exceeds ₹5 lakh and is not covered by Part B - the most common scenario for business remittances | Yes - Form 15CB mandatory |
| Part D | Payment is not chargeable to tax in India (fully exempt under the Income Tax Act or a DTAA) | No |
Part C is the default for most business remittances
Software payments, royalties, technical service fees, and salary to non-resident employees almost always require Part C of Form 15CA and a corresponding Form 15CB from your CA. Start with Part C unless you have a specific reason for another part.
Form 15CB - The CA Certificate
Form 15CB is the CA’s certification that:
- The nature of the payment has been examined (royalty, technical fee, salary, dividend, etc.).
- The applicable Double Taxation Avoidance Agreement (DTAA), if any, has been considered.
- The correct rate of TDS has been applied to the remittance.
- All applicable taxes have been or will be deducted before the payment is made.
Your CA uploads Form 15CB on the income tax portal using their own login credentials. You will receive a Certificate Number once it is uploaded. You must use this number when filing Part C of Form 15CA.
When Are These Forms Required?
The requirement applies to any foreign remittance that is a “sum chargeable to tax” in India. Whether a payment is chargeable depends on the nature of the income and whether a DTAA provides relief.
| Payment Type | Form Required |
|---|---|
| Software development or IT services to foreign vendor | 15CA (Part C) + 15CB |
| Import of goods | Exempt under Rule 37BB - no form needed |
| Royalty or technical service fee | 15CA (Part C) + 15CB |
| Salary to non-resident employee | 15CA (Part C) + 15CB |
| Dividend paid by Indian company to non-resident shareholder | Exempt (DDT paid) - no form needed |
| Interest on NRE or FCNR deposit | Exempt - no form needed |
| Professional fees to foreign consultant | 15CA (Part C) + 15CB |
| Reimbursement of expenses to foreign affiliate (no profit element) | Often Part D - assess with CA |
Exempted Payments Under Rule 37BB
Rule 37BB lists 28 categories of payment that are exempt from the 15CA/15CB requirement. The most common ones include:
- Import of goods - no form required.
- Travel, education, and medical treatment expenses for the remitter or family.
- Dividend remitted by an Indian company where Dividend Distribution Tax has been paid.
- Interest on NRE or FCNR accounts.
- Remittances under the Liberalised Remittance Scheme (LRS) for personal investments.
- Remittances by embassies or diplomatic missions.
Step-by-Step Filing Process
Assess the nature of the payment
Determine what category the remittance falls into - goods, services, royalty, salary, etc. This determines the applicable TDS rate and which Part of Form 15CA to file.
Check for DTAA benefit
If the recipient country has a DTAA with India, the treaty rate may be lower than the domestic TDS rate (or the payment may be exempt). Confirm this with your CA.
Engage your CA for Form 15CB (if Part C)
Provide your CA with the invoice, the nature of the contract, the recipient's tax residency certificate, and the applicable DTAA details. The CA reviews, certifies, and uploads Form 15CB on the portal.
Note the Form 15CB certificate number
Once your CA uploads Form 15CB, they will share the acknowledgement number. You will need this to link the certificate when filing Form 15CA Part C.
Log in to the income tax portal
Visit incometax.gov.in → e-File → Income Tax Forms → File Income Tax Forms. Select Form 15CA and choose the relevant Part.
Fill and submit Form 15CA
Enter the remitter and remittee details, payment details, TDS rate, and (for Part C) the Form 15CB certificate number. Submit and generate the acknowledgement.
Download the acknowledgement and submit to bank
Download the Form 15CA acknowledgement. Submit it to your bank along with Form A2 (the RBI declaration) when initiating the wire transfer.
Before
When to file
Forms must be filed before the bank processes the transfer
₹1 lakh
Penalty for non-compliance
Under Section 271-I of the Income Tax Act
28
Exempt categories
Under Rule 37BB - check before assuming you need the forms
Banks will reject transfers without these forms
Do not attempt to process a foreign wire transfer without first obtaining the required Forms 15CA and 15CB. Banks are legally liable and will decline to process the payment. Build adequate lead time - typically 2–3 working days for Form 15CB - into your payment schedule.
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