Form 15CA is a declaration by the remitter, filed on the income-tax portal before money is sent outside India, under Section 195(6) read with Rule 37BB. Form 15CB is a certificate from a chartered accountant confirming the taxability and the rate of TDS. You need 15CB only for Part C — a taxable remittance exceeding Rs 5 lakh in the financial year. A remittance that is not chargeable to tax goes in Part D, and 33 purposes on the Rule 37BB specified list need neither form. Getting it wrong costs Rs 1,00,000 under Section 271-I.
Which Part of Form 15CA Applies
Two questions settle it. First: is the remittance chargeable to tax in India? If not, it is Part D and nothing else. If it is, the second question is whether the aggregate for the financial year crosses Rs 5 lakh.
| Part | When it applies | 15CB needed? |
|---|---|---|
| Part A | Chargeable to tax, aggregate up to Rs 5 lakh in the FY | No |
| Part B | Chargeable, over Rs 5 lakh, with an order or certificate from the AO under Sec 195(2), 195(3) or 197 | No |
| Part C | Chargeable, over Rs 5 lakh, no AO order | Yes |
| Part D | Not chargeable to tax in India | No |
The Rs 5 lakh threshold is cumulative across the financial year for that remitter, not per transaction. Several small transfers can push you from Part A into Part C.
Part D looks attractive because it needs no CA certificate — but declaring a remittance "not chargeable to tax" is a substantive position, not a formality. If the department later holds the payment was taxable, the remitter becomes an assessee-in-default under Section 201 for the tax that should have been withheld, plus interest, on top of the Section 271-I penalty. Fees for technical services, royalties and most software payments are commonly taxable.
Remittances That Need Neither Form
Rule 37BB carves out two situations. Neither 15CA nor 15CB is required where the remittance is made by an individual and does not require RBI approval under Section 5 of FEMA, or where the purpose falls within the specified list of 33 items in the rule. The list is broadly personal and trade-related payments rather than income payments:
- Indian investment abroad — in equity, debt, branches and wholly owned subsidiaries
- Advance payment against imports, and payment towards imports settled through normal banking channels
- Travel for pilgrimage, medical treatment or education, and business travel
- Remittance towards family maintenance and personal gifts or donations
- Payments for operating expenses of Indian shipping and airline companies abroad
- Refunds of overpayments, and remittance of tax collected at source
How to File 15CA and 15CB
- 1Determine taxabilitySection 195 and the relevant treaty
- 2Add your CA on the portalAuthorised Partners → My CA, for Part C
- 3CA files Form 15CBCertifies rate, taxability and treaty position
- 4File Form 15CAQuote the 15CB acknowledgement in Part C
- 5Give both to the bankBank releases the remittance
The order matters: 15CB is certified first, and its acknowledgement number is quoted in Part C of 15CA. Filing 15CA before the certificate exists means re-doing it. Both forms can be withdrawn on the portal within seven days if a remittance is cancelled.
Paying an overseas vendor and unsure whether it is taxable in India?
Ask our tax desk →
Treaty Relief — TRC and Form 10F
Where a double taxation avoidance agreement gives a lower rate than domestic law, the payee can claim it — but only with the paperwork in place before the remittance:
| Document | What it does | Who provides it |
|---|---|---|
| Tax Residency Certificate (TRC) | Establishes residence in the treaty country | Tax authority of the payee's country |
| Form 10F | Supplies the details the TRC omits | The payee, filed electronically on the Indian portal |
| No-PE declaration | Confirms no permanent establishment in India | The payee |
| PAN of the payee | Avoids the higher rate under Section 206AA | The payee |
Form 10F must now be filed electronically on the income-tax portal, which requires the non-resident to be registered there. Start this early — registration is the usual cause of delay.
Section 206AA imposes a minimum rate of 20% where the payee has no PAN. Rule 37BC relaxes this for non-residents receiving interest, royalty, fees for technical services or capital-gains income, provided they furnish name, email, contact number, address, TRC and Tax Identification Number of their home country. Without that set, the treaty rate is of no help.
What it costs to get wrong
- Rs 1,00,000 under Section 271-I for failing to furnish the information, or furnishing it inaccurately
- Treated as an assessee-in-default under Section 201 for tax that should have been withheld, with interest at 1% or 1.5% a month
- The expenditure disallowed under Section 40(a)(i) when computing business income
- The bank simply refuses to process the remittance until the forms are in order
- Furnishing of information on foreign remittances: Section 195(6), Income-tax Act 1961
- Manner and forms: Rule 37BB, Income-tax Rules 1962 (including the specified list of 33 purposes)
- Relaxation from Section 206AA for non-residents: Rule 37BC
- Penalty: Section 271-I; disallowance: Section 40(a)(i)
- File both forms: incometax.gov.in
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position with the official source before you act on it.