What is Form 15CA & 15CB?
Form 15CA is a declaration a remitter files before sending money out of India, reporting the payment and the tax withheld on it. Form 15CB is a chartered accountant's certificate on the taxability of the remittance, the rate of withholding and any treaty relief claimed. Banks generally require both before releasing a remittance.
Who needs it
- Businesses paying overseas vendors for services, royalties, software, interest or technical fees.
- Individuals remitting funds abroad for maintenance, education, investment or the purchase of property.
- Non-residents repatriating the proceeds of sale of Indian property, shares or other assets.
- Non-residents transferring balances from an Indian account abroad, where the remittance is reportable.
- Companies paying dividend, interest or fees to non-resident shareholders or lenders.
- Anyone whose bank has asked for Form 15CA, Form 15CB or both before processing an outward remittance.
Benefits
- The right part of Form 15CA identified, since three of the four parts exist for quite different situations.
- A certificate in Form 15CB that states the basis of taxability, the rate and the treaty article relied on.
- Treaty relief supported by the tax residency certificate and Form 10F the rules require.
- Payments outside the reporting requirement identified, so a remittance is not delayed for no reason.
- Bank queries answered with the documents the bank's own checklist asks for.
Key facts
| Item | Position |
|---|---|
| Form 15CA | Declaration by the remitter, filed on the e-filing portal before the remittance |
| Form 15CB | Certificate by a chartered accountant on taxability, rate and treaty relief |
| When 15CB is needed | Remittance chargeable to tax, aggregate above ₹5 lakh in the financial year, no officer's order obtained |
| Threshold basis | Aggregate of chargeable remittances in the financial year, not per remittance |
| Governing provisions | Section 195, with Rule 37BB prescribing the forms and the excluded payments |
| Treaty support | Tax residency certificate, Form 10F, and a no permanent establishment declaration where relevant |
| Reporting afterwards | The withholding is reported in the quarterly statement in Form 27Q |
Which part of Form 15CA applies?
Form 15CA has four parts, and choosing between them is the first decision in any remittance. Two questions settle it: is the payment chargeable to tax in India, and if so, has the aggregate for the financial year crossed ₹5 lakh?
| Part | When it applies | Needs Form 15CB? |
|---|---|---|
| Part A | Remittance chargeable to tax, aggregate of ₹5 lakh or less in the financial year | No |
| Part B | Remittance chargeable to tax above that figure, where an order or certificate has been obtained from the assessing officer | No |
| Part C | Remittance chargeable to tax above that figure, supported by an accountant's certificate | Yes |
| Part D | Remittance not chargeable to tax under the Act | No |
Part D is the part most often used without enough thought. It is a declaration that the payment is not chargeable to tax in India, and the responsibility for that conclusion rests with the remitter. A reimbursement of expenses, a payment for goods, or a service performed and consumed entirely outside India may well be outside the charge, but the reason should be recorded at the time rather than reconstructed if the position is questioned later.
How is the taxability of a remittance decided?
The sequence is always the same, and skipping a step is what produces an incorrect rate.
- Identify the nature of the payment: is it for goods, services, royalty, fees for technical services, interest, dividend, or the sale of an asset?
- Decide whether it is income that accrues or arises in India, or is deemed to, under the charging and deeming provisions of the Act
- If it is chargeable, find the rate under the Act for that class of income and that class of recipient
- Check whether a treaty with the beneficiary's country gives a lower rate or exempts the income, and on what conditions
- Confirm the beneficiary's eligibility for the treaty: residency certificate, Form 10F where needed, and the absence of a permanent establishment where the article depends on it
- Apply the more beneficial of the Act and the treaty, and consider the effect of the beneficiary not having an Indian permanent account number
Which remittances are outside the requirement?
Not every outward remittance needs these forms. The rules set out a list of specified payments that do not require the declaration, covering a range of current account transactions of a personal nature, such as certain remittances for travel, education, medical treatment and family maintenance, and some other specified categories. The list is specific and is amended from time to time.
The practical point is that this is a list to be checked rather than a principle to be reasoned from. Two remittances that feel similar can fall on opposite sides of it, and a remitter who assumes an exclusion applies may end up having furnished nothing at all where a declaration was required. Equally, a remitter who files for every payment delays remittances that needed nothing.
Example: a software payment to a vendor abroad
The figures below are illustrative. An Indian company pays an overseas vendor ₹18 lakh during a financial year for a software licence. The first question is the character of the payment: whether it is a royalty, which is chargeable in India and attracts withholding, or a payment for a copyrighted article, which may not be, depending on the terms of the licence and the treaty. The agreement is read for what rights are actually granted. If the conclusion is that it is a royalty, the rate under the Act is compared with the rate in the treaty with the vendor's country, and the lower is applied, provided the vendor furnishes a current tax residency certificate and Form 10F and the treaty conditions are met. Because the aggregate for the year exceeds ₹5 lakh, the certificate is issued in Form 15CB and the company files Part C of Form 15CA quoting it. The tax withheld is deposited by the due date and reported in that quarter's statement in Form 27Q.
A note on the Income-tax Act, 2025
The Income-tax Act, 2025 replaced the Income-tax Act, 1961 with effect from 1 April 2026. It uses the term "tax year" in place of previous year and assessment year, and it renumbers sections and forms. This page uses the 1961 section numbers because that is how the provisions are still commonly known; the corresponding provisions of the Income-tax Act, 2025 apply to periods governed by the new Act. Confirm the current numbering for your period before relying on a reference.
Related reading
- Form 15CA and 15CB explained — a plain-language walkthrough of the two forms
- NRI tax filing — returns and repatriation for non-residents
- FEMA compliance — the exchange control side of a remittance
Official sources
- Income Tax Department – e-filing portal — filing Form 15CA, 15CB and 10F
- Income-tax Rules — Rule 37BB and the list of specified payments
- Income Tax Department – double taxation avoidance agreements — treaty texts by country
- Reserve Bank of India – FEMA — rules on current and capital account transactions
Documents required
- 01Invoice or agreement for the payment, and the purpose of the remittance
- 02Details of the remitter and the beneficiary, including the beneficiary's country of residence
- 03Permanent account number of the remitter, and of the beneficiary where available
- 04Tax residency certificate issued by the beneficiary's country of residence, where treaty relief is claimed
- 05Form 10F from the beneficiary, where the residency certificate does not carry all the prescribed particulars
- 06No permanent establishment declaration from the beneficiary, where relevant to the treaty position
- 07Bank's outward remittance application form and its own checklist
- 08Proof of tax deducted and deposited, where the remittance is chargeable to tax
- 09For sale proceeds, the documents for the asset, its cost and the capital gains computation
Due dates and penalties
| Item | Due date | If missed |
|---|---|---|
| Form 15CA and Form 15CB | Before the remittance is made; banks will not release the funds without them where they are required | The remittance is held up by the bank |
| Deposit of tax withheld | By the 7th of the month following deduction; for March, by 30 April | Interest under Section 201(1A) for the period of delay |
| Quarterly return in Form 27Q | 31 July, 31 October, 31 January and 31 May | Late fee under Section 234E, and the beneficiary's credit is delayed |
| Penalty for non-furnishing of the declaration | Applies where the information is not furnished, or is furnished incorrectly | Penalty under Section 271-I of the amount the section prescribes |
There is no separate due date for Form 15CA and 15CB: the point is that they precede the remittance. The dates that do bite are those for depositing the tax withheld and for the quarterly statement that reports it. The Income-tax Act, 2025 note below applies to the section references on this page.
Mistakes to avoid
- Filing Part D on the view that the payment is not taxable, without a considered position on why it is not.
- Treating the ₹5 lakh threshold as applying to a single remittance, when it applies to the aggregate for the financial year.
- Claiming a treaty rate without the tax residency certificate and Form 10F to support it.
- Applying a treaty rate without considering whether the beneficiary has a permanent establishment in India.
- Issuing the certificate before the tax has been deducted and deposited, where the remittance is chargeable.
- Not reporting the remittance in the quarterly statement in Form 27Q after the tax has been withheld.
- Assuming every outward remittance needs the forms, when the rules list payments that are outside the requirement.
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