15CA/CB Filing: Meaning, Applicability, Details, Process & Compliances
Introduction
International financial transactions have become increasingly common in today’s globalized economy, making tax and regulatory compliance a critical requirement for individuals and businesses remitting money outside India. In this context, Form 15CA and Form 15CB play a vital role in ensuring transparency and adherence to Indian tax laws.
As per the Income-tax Act, 1961, any person making a foreign remittance from India—whether an individual, company, LLP, or other entity—is required to furnish Form 15CA to the Income Tax Department. This form acts as a declaration that the remittance complies with applicable Income Tax provisions and FEMA regulations.
In certain cases, Form 15CB must also be obtained. This form is a certificate issued by a qualified Chartered Accountant, confirming the nature of the remittance, applicable taxability, TDS rate, and compliance with Double Taxation Avoidance Agreements (DTAA), if any.
Having a clear understanding of Form 15CA/15CB is essential to ensure smooth cross-border transactions, avoid unnecessary delays, and prevent penalties for non-compliance.
In this guide, we provide an in-depth explanation of Form 15CA and Form 15CB, including their applicability, legal requirements, step-by-step filing procedure, timelines, and penalties, to help you manage international remittances with confidence and full regulatory compliance.
What is 15CA & 15CB?
Form 15CA and Form 15CB are mandatory compliance documents used in India to regulate and report foreign remittances made to non-residents, ensuring adherence to Income-tax laws and FEMA regulations.
What is Form 15CA?
Form 15CA is a declaration furnished by the remitter (the person responsible for making the payment) when making a foreign remittance outside India. It is filed for every remittance, prior to sending funds abroad, and submitted electronically on the income-tax portal of the Income Tax Department.
It applies to payments made to non-residents (including foreign companies) and helps the tax authorities track taxable and non-taxable outward remittances.
What is Form 15CB?
Form 15CB is a certificate issued by a qualified Chartered Accountant (CA). It certifies:
Nature of remittance
Applicable taxability under the Income-tax Act, 1961
Relevant TDS rate (including DTAA benefit, if applicable)
Confirmation that taxes have been correctly deducted and deposited
Form 15CB is generally required when the remittance is taxable and exceeds ₹5 lakh during a financial year, and no lower/nil deduction certificate has been obtained from the Assessing Officer.
Filing mode: Both Form 15CA and Form 15CB are primarily filed online (banks usually insist on online filings before processing remittances). Some banks may also require printed acknowledgements for records.
Parts of Form 15CA (Which Part to File?)
Form 15CA is divided into four parts. The applicable part depends on the taxability and amount of remittance:
| Part | Description |
|---|---|
| Part A | When the remittance (single or aggregate) does not exceed ₹5 lakh during the financial year and is chargeable to tax. |
| Part B | When taxable remittances exceed ₹5 lakh during the FY and the Assessing Officer has issued a certificate/order under Sections 195(2), 195(3), or 197. |
| Part C | When taxable remittances exceed ₹5 lakh during the FY and a CA certificate in Form 15CB has been obtained. |
| Part D | When the remittance is not chargeable to tax under the Income-tax Act, 1961. |
Why Banks Ask for 15CA/15CB
Before processing a foreign remittance, banks require these forms to:
Verify tax compliance
Ensure correct withholding tax (TDS)
Maintain regulatory transparency for cross-border payments
Failing to submit the correct part of Form 15CA (and Form 15CB where applicable) can delay remittances and may attract penalties.
Applicability of 15CA/CB
Applicability of Form 15CA & Form 15CB
The applicability of Form 15CA and Form 15CB depends primarily on whether the payment made to a non-resident is taxable in India under Section 5 of the Income-tax Act, 1961.
Step 1: Check Taxability
First, determine whether the remittance made to a non-resident is taxable in India.
If not taxable, only Part D of Form 15CA is applicable.
If taxable, proceed to Step 2.
Step 2: Determine the Applicable Part of Form 15CA
1️⃣ Amount ≤ ₹5 lakh in a Financial Year (Taxable)
Applicable Form:
Form 15CA – Part AForm 15CB:
❌ Not required
2️⃣ Amount > ₹5 lakh in a Financial Year (Taxable) – No AO Certificate
Applicable Form:
Form 15CA – Part CForm 15CB:
✅ Mandatory
(Must be obtained from a Chartered Accountant before filing Part C)
3️⃣ Amount > ₹5 lakh with AO Certificate (Sections 195/197)
If a certificate/order is obtained from the Assessing Officer under:
Section 195(2) – lower / appropriate deduction
Section 195(3) – nil deduction
Section 197 – lower / nil TDS certificate
Applicable Form:
Form 15CA – Part BForm 15CB:
❌ Not required
4️⃣ Remittance Not Taxable in India (Exception List)
If the payment is not taxable in India and falls under the specified exemption list (Rule 37BB):
Applicable Form:
Form 15CA – Part DForm 15CB:
❌ Not requiredAmount Limit:
👉 Irrelevant (any amount)
Quick Applicability Summary Table
| Situation | Form 15CA Part | Form 15CB Required |
|---|---|---|
| Taxable remittance ≤ ₹5 lakh | Part A | ❌ No |
| Taxable remittance > ₹5 lakh | Part C | ✅ Yes |
| AO certificate obtained | Part B | ❌ No |
| Not taxable (exception list) | Part D | ❌ No |
Exemptions in 15CA/CB filing
Exemptions from Filing Form 15CA / 15CB (FEMA-Related Remittances)
Although Form 15CA/15CB is primarily governed by the Income-tax Act, 1961, it also aligns with FEMA regulations administered by the Reserve Bank of India.
Certain foreign remittances are exempt from filing these forms, provided they are non-taxable in India and fall under the specified categories prescribed under Rule 37BB.
If a remittance is covered below, Form 15CA and Form 15CB are NOT required, irrespective of the amount.
A. Investment-Related Exemptions
Indian equity capital invested abroad
Indian debt securities invested outside India
Overseas investment through wholly owned subsidiaries or branches
Indian investment in foreign real estate
Loans granted to non-residents
B. Import & Trade-Related Exemptions
Advance payment against import of goods
Import invoice settlement payments
Imports below ₹5,00,000
Intermediary or merchant trading transactions
Import by diplomatic missions
Reduction, rebate, or refund in export invoice value
International bidding payments by Indian residents
C. Travel & Personal Remittance Exemptions
Business travel abroad
Travel under Basic Travel Quota (BTQ)
Pilgrimage travel
Medical treatment abroad
Education expenses (tuition fees, hostel fees, training courses)
Remittance for employment-related expenses abroad
D. Government, Embassy & Institutional Payments
Payments for maintenance of Indian embassies abroad
Remittances by foreign embassies in India
Donations or grants to foreign governments
Contributions to international institutions by the Government of India
Import by diplomatic missions
E. Insurance, Logistics & Operational Payments
Freight insurance (import/export of goods)
Maintenance costs of Indian airline companies operating abroad
Payments for overseas office maintenance
Postal services (international)
Construction of overseas projects by Indian companies (including material import at project site)
F. Family, Gifts & Charitable Contributions
Remittance by non-residents for family maintenance or savings
Personal gifts and donations
Donations to religious or charitable institutions abroad
G. Tax & Financial Adjustments
Payment or refund of taxes abroad
Refund of excess remittance
Bank charges and foreign exchange charges
Important Compliance Notes
✔ If the remittance falls under the above exemption list, no Form 15CA or 15CB is required
✔ If the remittance is not taxable but not covered in the list, Form 15CA – Part D must be filed
✔ If the remittance is taxable, filing depends on the amount and nature (Part A / B / C + 15CB)
Common Mistake to Avoid ❌
Many taxpayers incorrectly file Part D even when the remittance is explicitly exempt.
👉 If listed under Rule 37BB – no filing at all is required.
Quick Summary Table
| Nature of Remittance | 15CA Required | 15CB Required |
|---|---|---|
| Covered under exemption list | ❌ No | ❌ No |
| Not taxable but not listed | ✅ Part D | ❌ No |
| Taxable ≤ ₹5 lakh | ✅ Part A | ❌ No |
| Taxable > ₹5 lakh | ✅ Part C | ✅ Yes |
Required details for 15CA/CB filing
Details Required for Filing the Form
To accurately complete the filing process, the following documents and information are required:
Invoice or Agreement
Copy of the invoice or contractual agreement against which the remittance is being made.Tax Residency Certificate (TRC)
Required if the remitter is claiming benefits under the Double Taxation Avoidance Agreement (DTAA).No Permanent Establishment (No-PE) Declaration
A declaration stating that the non-resident recipient does not have a Permanent Establishment in India (if applicable).PAN of the Remittee
Permanent Account Number of the non-resident recipient, if available.RBI Approval
Approval from the Reserve Bank of India, if the remittance requires regulatory approval.Digital Signature Certificate (DSC)
Valid DSC of the authorised signatory for electronic filing.Form 10F
Required when claiming DTAA benefits, confirming the tax residency and eligibility of the non-resident.Bank Statement
To verify the remittance amount and transaction details.Nature and Amount of Payment
Complete details of the payment, including the purpose, amount, and currency of remittance.Remitter and Remittee Details
Full name and complete address of both the payer (remitter) and the recipient (remittee).Board Resolution
Mandatory in the case of a Company or LLP, approving the foreign remittance transaction.Constitutional Documents (as applicable)
Copy of the Partnership Deed, LLP Agreement, Trust Deed, or Memorandum of Association (MOA), depending on the entity type.
Stepwise Procedure for filing
Step-by-Step Procedure for Filing Form 15CA / 15CB
Step 1: Obtain a PAN
Before filing Form 15CA, the remitter (taxpayer) must possess a valid Permanent Account Number (PAN) issued by the Income Tax Department of India.
If the taxpayer does not have a PAN, it must be obtained prior to initiating the filing process, as Form 15CA cannot be submitted without it.
Step 2: Determine Whether Form 15CB Is Required
Form 15CB is required when:
The remittance exceeds ₹5 lakh, and
The payment is chargeable to tax in India.
Form 15CB is a certificate issued by a Chartered Accountant (CA) confirming:
The nature of remittance,
Taxability under the Income Tax Act,
Applicable DTAA benefits (if any), and
That appropriate taxes have been deducted and paid.
Prerequisites for Filing Form 15CB
The CA must be registered on the Income Tax e-filing portal as a Chartered Accountant.
The CA’s PAN must be active.
The CA must possess a valid (non-expired) Digital Signature Certificate (DSC).
The taxpayer must assign Part C of Form 15CA to the CA through the portal.
Sections Covered in Form 15CB
Once assigned, the CA will complete the following sections in Form 15CB:
Certification – Accountant’s declaration and certification details
Details of Remittee (Recipient) – Name, address, country, and tax residency details
Details of Remittance – Amount, currency, and bank details
Taxability under the Income Tax Act (Without DTAA) – Whether the remittance is taxable in India
Taxability under the Income Tax Act (With DTAA) – DTAA applicability and tax rates, if relevant
Details of the Accountant – CA’s name, firm name, membership number, and address
Once Form 15CB is successfully submitted, the taxpayer can proceed to file Form 15CA.
Step 3: File Form 15CA
After completing Form 15CB (if applicable), log in to the Income Tax e-filing portal and file Form 15CA under the appropriate category:
Part A:
When total remittance during the financial year does not exceed ₹5,00,000 and is chargeable to tax.Part B:
When remittance exceeds ₹5,00,000 and a certificate/order has been obtained from the Assessing Officer under Sections 195(2), 195(3), or 197.Part C:
When remittance exceeds ₹5,00,000 and Form 15CB has been obtained from a Chartered Accountant.Part D:
When the remittance is not chargeable to tax under the Income Tax Act, irrespective of the amount.
Step 4: Complete Documentation and Submission
Enter complete and accurate details of the remitter and remittee, including payment nature, amount, and tax details.
After successful submission, an acknowledgment receipt with a unique reference number is generated, confirming that the Form 15CA has been filed correctly.
This acknowledgment must be shared with the bank for processing the foreign remittance.
Penalties for not filing 15CA/CB
As per Section 271-I of the Income Tax Act, 1961, failure to file Form 15CA or Form 15CB, or filing these forms with incorrect or incomplete details, attracts a penalty. The prescribed penalty may extend to ₹1,00,000 or the amount of remittance, whichever is applicable, for each instance of non-compliance.
Timely and accurate filing of Forms 15CA and 15CB is therefore essential to avoid substantial financial penalties.
Fees for 15CA and 15CB
At BizCatalyst Technologies, we offer expert assistance for Form 15CA and Form 15CB filings at highly competitive rates:
| Service | Fees (₹) |
|---|---|
| Form 15CA Filing | ₹999 |
| Form 15CA + Form 15CB Filing | ₹1,999 |
Please note that the charges may vary depending on the complexity of the transaction, nature of remittance, and specific compliance requirements. With BizCatalyst Technlogies, you can rely on accurate filings and receive your Form 15CB certificate within just 24 hours, ensuring quick and hassle-free compliance.
