October 10, 2025
7 mins read
Form 15CA and Form 15CB are important compliance documents under the Income Tax Act that apply when remitting funds outside India. These forms ensure that tax is deducted at the correct rate before any remittance is made. Form 15CA is a declaration by the remitter confirming the tax deduction on foreign payments. Form 15CB, on the other hand, is a certificate from a chartered accountant that validates the tax has been correctly calculated.
These forms are mandatory for most foreign remittances, especially those above ₹5 lakh. Filing these correctly avoids delays in bank processing and ensures smooth foreign transactions without tax violations.
Form 15CA is a declaration that must be filed electronically before remitting funds outside India. It confirms whether the payment is taxable and if tax has been deducted at the appropriate rate. It helps the Income Tax Department track foreign payments and ensures compliance with Section 195.
The form is divided into four parts, A, B, C, and D, depending on the remittance amount and the applicability of tax. Even in cases where tax is not deducted, submission of Form 15CA may still be necessary unless the remittance falls under the exempt list prescribed by the CBDT.
Read Also: What Is TAX
Form 15CA has four parts, each serving different scenarios based on remittance value and tax status. Part A is for remittances not exceeding ₹5 lakh in a financial year and where tax is deductible. Part B is for those with a certificate under Section 197 or an order under 195(2)/(3). Part C applies to remittances exceeding ₹5 lakh that require Form 15CB from a Chartered Accountant. Part D is used when the remittance is not chargeable to tax as per the RBI rules. Choosing the correct part ensures proper reporting and smooth approval from the bank processing the remittance.
Part A: To be filled if remittance ≤ ₹5 lakh in a financial year and is taxable.
Part B: For taxable remittances where a valid certificate under Section 197 or an order under Section 195(2)/(3) exists.
Part C: To be filled if remittance > ₹5 lakh and requires Form 15CB.
Part D: For remittances that are not taxable as per RBI rules.
Form 15CB is a certificate issued by a Chartered Accountant that certifies the nature of the remittance and confirms the applicable tax deduction as per Indian laws. It is required only for remittances exceeding ₹5 lakh that are taxable. The CA examines the nature of payment, DTAA applicability, rate of TDS, and ensures all tax liabilities are met. This form is filed electronically and must be accepted by the taxpayer before submitting Form 15CA Part C. The bank will not process the remittance without these documents, so it is essential to ensure Form 15CB is accurately filed and linked.
Form 15CA and 15CB are applicable for all foreign remittances that are taxable in India. If the remittance amount is below ₹5 lakh and is taxable, Form 15CA alone is required. For amounts above ₹5 lakh and taxable, both forms are mandatory. In cases where the remittance is not chargeable to tax (e.g., gifts to relatives, education fees), Form 15CB is not required, and Part D of Form 15CA can be used. The rules are framed under Section 195 to ensure that Indian residents do not evade taxes on income paid abroad. Always verify the remittance category before filing.
Form 15CA is mandatory for most foreign transactions, even if no tax is deducted.
Form 15CB is required when remittance exceeds ₹5 lakh and is taxable.
No need for Form 15CB in exempt categories notified by CBDT (e.g., gifts to relatives, education payments).
Both forms must be submitted before making the payment to the bank.
To file Form 15CA, log in to the Income Tax e-filing portal with your PAN credentials. Go to ‘e-File’ > ‘Income Tax Forms’ and select Form 15CA from the list. Choose the relevant part (A/B/C/D) based on remittance value and taxability. Enter details like remitter, remittee, purpose code, bank information, and remittance amount. Validate and submit the form using an OTP or Digital Signature Certificate (DSC). Upon submission, you’ll receive an acknowledgment number, which must be provided to the bank. Filing should be done before the actual transfer to avoid delays in bank clearance or remittance rejection.
Only a Chartered Accountant (CA) registered on the e-filing portal can file Form 15CB. The CA logs in, navigates to the e-Verify section, and selects Form 15CB. After filling in all required details, like nature of remittance, DTAA applicability, TDS rate, and justification for tax calculation, the form is digitally submitted. The taxpayer then receives a notification to approve the form from their login. Once approved, the Form 15CB gets linked to Form 15CA Part C. This sequential process ensures tax compliance. Banks require the acknowledgment of both forms before they initiate the remittance process on your behalf.
To fill these forms accurately, several pieces of information are needed. These include the PAN and contact details of the remitter and remittee, amount and currency of the remittance, nature and purpose of the transaction (RBI purpose code), applicable TDS rate, and DTAA clause if appropriate. For Form 15CB, the Chartered Accountant will need access to your financials, tax computation, and previous filings. Accurate entry of these details is crucial. Any mistake may lead to rejection of the form or delay in remittance. The bank may also seek hard copies of the acknowledgment during processing.
Read Also: Types Of TDS In India
Filing Form 15CA and 15CB is a mandatory step for taxable foreign remittances from India. It helps the Income Tax Department monitor foreign transactions and ensures that due taxes are paid. These forms serve as a declaration and certification that the remittance adheres to Indian tax laws. Whether you’re sending money for business, education, or personal reasons, understanding when and how to file these forms is critical. Timely and accurate submission can prevent unnecessary legal or financial delays. Always consult a qualified Chartered Accountant to determine the correct filing process for your specific remittance case.
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Form 15CA is a tax declaration for foreign remittance. Form 15CB is a certificate from a Chartered Accountant that confirms tax calculation and payment, applicable for remittances above ₹5 lakh.
There is no specific limit, but if the amount exceeds ₹5 lakh and is taxable, Form 15CB is also required in addition to Form 15CA.
Form 15CB is not required if the remittance is non-taxable or falls under the exempted categories listed by CBDT or is below ₹5 lakh in a financial year.
Form 15CB must be filled out before submitting Form 15CA Part C. It is mandatory when the remittance is above ₹5 lakh and taxable under Indian law.
Yes, if the payment is taxable in India. TDS rates vary depending on the nature of remittance and the Double Taxation Avoidance Agreement (DTAA) provisions.
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