Form 15CA and 15CB explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Form 15CA is the remitter’s online declaration for payments to non-residents; Form 15CB is a chartered accountant’s certificate on taxability and withholding. Under Section 195 and Rule 37BB, Form 15CB is needed when a taxable remittance exceeds ₹5,00,000 in a year and no lower-deduction order exists.
Overview
Any person making a payment to a non-resident that is chargeable to tax must ensure correct withholding under Section 195 of the Income-tax Act 2025 and report it. Rule 37BB prescribes Form 15CA (remitter's declaration) and Form 15CB (CA certificate), which authorised dealers require before releasing foreign remittances. Together they give the department a real-time trail of cross-border payments.
The Four Parts of Form 15CA
| Part | When used |
|---|---|
| Part A | Taxable remittance up to ₹5,00,000 in the financial year |
| Part B | Taxable remittance above ₹5,00,000 with a Section 195(2)/197 lower/nil order |
| Part C | Taxable remittance above ₹5,00,000, supported by Form 15CB |
| Part D | Remittance not chargeable to tax in India |
When Form 15CB Is Needed
Form 15CB is a CA's certificate confirming the nature of the remittance, whether it is chargeable to tax, the applicable DTAA article and rate, and the tax deducted. It is mandatory only for Part C — a taxable remittance exceeding ₹5,00,000 in the year without a lower-deduction order. For smaller or non-taxable remittances, the CA certificate is not required.
Remittances Exempt Under Rule 37BB
Rule 37BB carves out a specified list of transactions that do not require Form 15CA/15CB — for example certain personal remittances, specified imports, and payments not requiring RBI approval. Because the list is periodically revised, verify the current specified nature codes before treating a payment as exempt.
Step-by-Step Process
- Determine taxability of the remittance under Section 195 and the relevant DTAA (collect the payee's TRC and Form 10F).
- If Part C applies, obtain Form 15CB from a chartered accountant.
- File the appropriate part of Form 15CA online on the income-tax portal, linking the 15CB acknowledgement number.
- Submit both to the authorised dealer bank to release the remittance.
Worked Example
An Indian company remits ₹30,00,000 royalty to a Japanese licensor. The payment is taxable, exceeds ₹5,00,000, and no Section 195(2) order exists, so the CA issues Form 15CB certifying the 10% treaty rate (₹3,00,000 TDS). The company then files Part C of Form 15CA quoting the 15CB number, and the bank releases the net ₹27,00,000.