This guide is general information. If you would rather a chartered accountant handled it, see Form 15CA & 15CB or NRI Tax Filing.
When you send money abroad, your bank may ask for Form 15CA and sometimes Form 15CB. They relate to income tax on payments to non-residents.
What they are
- Form 15CA: a declaration by the remitter about the payment, filed on the income tax portal
- Form 15CB: a certificate from a chartered accountant about the taxability of the payment and the rate of TDS
Parts of Form 15CA
| Part | Used when |
|---|---|
| A | Payment is taxable and does not exceed ₹5 lakh in a financial year |
| B | Payment is taxable and a certificate for lower or nil TDS has been obtained from the Assessing Officer |
| C | Payment is taxable, exceeds ₹5 lakh, and a CA certificate in Form 15CB is obtained |
| D | Payment is not chargeable to tax in India, or falls under specified exemptions |
These conditions have been revised from time to time. Confirm the current rules before filing.
Process
- Decide whether the payment is taxable in India, considering the nature of payment and the tax treaty
- Obtain Form 15CB from a CA where required
- File Form 15CA online and download the acknowledgement
- Submit the forms to your authorised dealer bank with the remittance request
Documents
- Invoice or agreement for the payment
- Beneficiary details
- PAN and TAN, as applicable
- Tax residency certificate and Form 10F, if claiming a treaty benefit
Who needs to file
The person making a payment to a non-resident, or to a foreign company, must furnish Form 15CA before the payment, subject to exceptions. This includes businesses paying for services, royalties and software, and individuals sending large sums abroad that are chargeable to tax. Payments that are clearly of a capital nature and not taxable may need only a declaration, or may be exempt from the form, depending on the nature and the amount.
When is a CA certificate required?
Form 15CB is required where the payment is taxable in India and the amount exceeds the limit stated in the rules. The CA examines the agreement, the nature of the payment, the applicable tax treaty and the rate of deduction. The certificate gives the details the bank needs to allow the remittance, including how much tax should be deducted.
How a treaty can change the tax
India's tax treaties can reduce or eliminate tax on payments to residents of the treaty country. To use the benefit, the payee generally provides a tax residency certificate and Form 10F. The CA checks whether the treaty actually applies to the type of payment, for example royalties and fees for technical services are treated differently from business profits.
Mistakes that delay remittances
- Choosing the wrong part of Form 15CA
- Mismatch between the invoice, the agreement and the form
- No tax residency certificate to support a treaty claim
- Wrong purpose code or beneficiary details in the bank request
- Not deducting tax at the right rate, which leads to a demand later
Example: paying a foreign software vendor
A company in India pays ₹8,00,000 to a foreign company for software services. The payment may be taxable in India depending on the nature of the service and the treaty. The CA reviews the agreement and invoices, checks the treaty, and decides whether tax is deductible and at what rate. If tax applies, the company deducts it from the payment and deposits it, then files Form 15CA. Because the amount exceeds the limit, a CA certificate in Form 15CB is also needed. The bank then processes the remittance.
Practical advice for smooth remittances
- Start the paperwork before the payment date, not on it.
- Keep agreements, invoices and details of the foreign party ready.
- Ask the foreign party for a tax residency certificate and Form 10F if you plan to claim a treaty benefit.
- Check with your bank on its own documentation requirements, which may go beyond the tax forms.
- Keep the acknowledgements for later assessments and audits.
Official sources
Rule 37BB of the Income-tax Rules and the income tax portal describe Form 15CA and 15CB, the parts of the form and the limits. The Reserve Bank of India's guidelines on remittances explain what your bank needs. Rules and limits have been revised several times, so confirm the current position before relying on any summary.
Frequently asked questions
Do I need Form 15CA for every foreign payment?
No. Some payments are exempt under the rules, such as certain payments related to travel, education and specified purposes, up to limits. Others need only a declaration. Your bank and CA can confirm.
Who can issue Form 15CB?
A chartered accountant, as defined in the Chartered Accountants Act. The form is uploaded on the income tax portal.
How long does it take?
If the facts and documents are clear, the CA certificate and the declaration can be done in a day or two. Missing documents are the usual cause of delay.
Is Form 15CA required for NRIs sending money abroad from NRO accounts?
Yes, generally. Repatriation from an NRO account usually needs Form 15CA and, in many cases, a CA certificate, along with the bank's own documentation.
This content is for general information and does not constitute professional advice. Laws, rates and due dates change; confirm the current position for your case. Section references are to the Income-tax Act, 1961 unless stated; the Income-tax Act, 2025 applies to later periods with renumbered sections.