Seamless Compliance for International Payments

At Whytax, we specialize in helping individuals and businesses meet their cross-border taxation and compliance needs. If you're making a remittance to a non-resident, you're likely required to file Form 15CA and Form 15CB. Our expert team ensures smooth, error-free filing while helping you understand your obligations under the Income Tax Act of India.

When an individual or entity in India makes a payment to a non-resident or foreign entity, the Income Tax Department requires compliance to ensure tax has been deducted, if applicable, on such remittances.

To monitor these transactions, two forms—15CA and 15CB—are used. Filing these accurately is critical to avoid penalties and ensure regulatory compliance.

What is Form 15CA?

Form 15CA is a declaration of remittance made by a person to a non-resident. It is used to track foreign remittances and ensure the deduction of tax at source under Section 195 of the Income Tax Act, 1961.

Parts of Form 15CA:

Form 15CA is divided into four parts depending on the value and nature of the payment:
• Part A – For payments not exceeding ₹5 lakh in a financial year.
• Part B – For payments exceeding ₹5 lakh, where a certificate/order under Section 195(2)/195(3)/197 exists.
• Part C – For payments exceeding ₹5 lakh and Form 15CB from a Chartered Accountant is required.
• Part D – For payments that are not taxable under Indian tax laws.

What is Form 15CB?

Form 15CB is a certificate issued by a Chartered Accountant (CA). It certifies the nature of the remittance, taxability under Indian laws, and compliance with Double Tax Avoidance Agreements (DTAA), if applicable.

This form provides the following:
• Details of the remitter and recipient
• Nature and purpose of the remittance
• Rate of TDS (if any)
• DTAA benefits, if claimed

When are Form 15CA & 15CB Required?

You must file these forms when:
• Making a foreign remittance to a non-resident
• The payment may be taxable under Indian laws
• The transaction amount exceeds ₹5 lakh (Form 15CB is mandatory in most such cases)

When Are Form 15CA & 15CB Not Required?

These forms are not required in the following cases:
• Payments listed under Rule 37BB (like imports, travel expenses, school fees, etc.)
• Remittances not chargeable to tax
• Payments below ₹5 lakh (in some cases)

How to File Form 15CA Online?

1. Log in to the Income Tax e-filing portal
2. Go to e-File > Income Tax Forms > File Income Tax Forms
3. Select Form 15CA
4. Fill in the appropriate Part (A/B/C/D) based on your transaction
5. Upload the form and submit using DSC or EVC

How to File Form 15CB Online?

Only a Chartered Accountant can file Form 15CB:
1. CA logs into their account on the e-filing portal
2. Uploads and digitally signs Form 15CB
3. The form is auto-linked to the assessee’s Form 15CA Part C
4. The assessee can then submit Form 15CA after CA uploads 15CB

Information Required to File 15CA & 15CB

You'll need:
• Details of remitter and recipient (Name, PAN, address)
• Nature and purpose of remittance
• Country of remittance
• Bank details
• Amount and currency
• Copy of invoice/contract
• DTAA applicability and tax residency certificate (if applicable)
• TDS details

Penalty for Non-Compliance

Failure to file Forms 15CA & 15CB before remittance can result in:
• Penalty up to ₹1,00,000 under Section 271-I
• Scrutiny and legal complications
• Delays in remittance and possible disallowance of expense

FAQs – Form 15CA & 15CB