01Overview
What are Form 15CA and Form 15CB?
Form 15CA and Form 15CB are tax compliance documents associated with certain payments made from India to non-residents or foreign companies. They help establish the applicable tax treatment of an overseas payment and support compliance with relevant Indian income-tax provisions.
Form 15CA is an online declaration submitted by the remitter, while Form 15CB is a certificate issued by a practising Chartered Accountant (CA) when required under the applicable rules.
Before initiating a remittance, businesses and individuals should assess whether tax must be deducted at source, whether a CA certificate is needed, whether Form 15CA must be submitted, and what the authorised dealer bank requires. Whether you are paying for professional services, consultancy, royalties, interest, or software-related services, understanding these requirements helps you manage cross-border payments.
02The Two Forms
Form 15CA and Form 15CB at a glance
Form 15CA
An online declaration reporting specified payments to non-residents or foreign companies, submitted by the remitter on the Income Tax e-Filing portal where applicable. It is divided into parts; the right part depends on the payment's taxability, amount, and whether a certificate or order is required. It reports the remittance to the Income Tax Department and may be required by the authorised dealer bank before processing.
Form 15CB
A certificate issued electronically by a practising Chartered Accountant when the rules require it. It examines the payment and its tax treatment under Indian law, covering the remitter and recipient, nature and amount of remittance, taxability, the applicable tax deduction rate and amount, and relevant Double Taxation Avoidance Agreement (DTAA) provisions where applicable.
03Differences
Difference between Form 15CA and Form 15CB
| Basis | Form 15CA vs Form 15CB |
|---|---|
| Purpose | 15CA: declaration of specified foreign remittance details. 15CB: CA certificate covering the applicable tax treatment. |
| Who files or issues it | 15CA: the person making the remittance. 15CB: a practising Chartered Accountant, where required. |
| Submission method | 15CA: online through the Income Tax Department's e-filing portal. 15CB: electronic certification through the prescribed portal process. |
| Tax analysis | 15CA: reports information relevant to the remittance and its tax treatment. 15CB: examines and certifies prescribed tax-related details. |
| Applicability | 15CA: depends on the payment and applicable filing conditions. 15CB: required only when the prescribed conditions are met. |
04When 15CA Applies
When is Form 15CA applicable?
Form 15CA may be required when a person makes a payment or remittance to a non-resident or foreign company, subject to the conditions and exceptions under Indian income-tax law. Common situations requiring an assessment include:
Payments to non-residents
Payments made to non-residents or foreign companies for which Indian tax reporting requirements may apply.
Professional and technical services
Overseas payments for consultancy, professional services, or technical services, depending on their tax treatment.
Interest, royalties and other income
Payments that may be taxable in India under domestic law or an applicable tax treaty.
Taxable foreign remittances
Payments chargeable to tax in India for which the relevant Form 15CA requirements are met.
Certain non-taxable remittances
Some payments not chargeable to tax may still require a declaration under the applicable rules, while others may be exempt from filing.
05When 15CB Applies
When is Form 15CB applicable?
Form 15CB generally becomes relevant when the payment is chargeable to tax in India and the prescribed conditions for CA certification are satisfied. It may be required in circumstances such as:
- Remittance exceeding ₹5 lakh: The payment or aggregate relevant remittances exceed ₹5 lakh during the financial year and the conditions for CA certification are met.
- Payment taxable in India: The remittance is chargeable to tax under the relevant provisions of Indian income-tax law.
- Form 15CA Part C: The remitter must submit Part C of Form 15CA, which is supported by a CA certificate in Form 15CB.
- Tax rate and treaty assessment: The rules require certification of details such as the nature of income, taxability, TDS rate, and applicable DTAA provisions.
06Mandatory?
Are Form 15CA and Form 15CB mandatory for every foreign remittance?
No. The requirement to file Form 15CA, obtain Form 15CB, or submit both depends on the nature of the remittance and the applicable provisions of Indian income-tax law.
Certain payments may qualify for exemptions or fall outside the relevant reporting requirements. In other cases, a specific part of Form 15CA may be required, with or without Form 15CB. Tax deduction at source (TDS) and foreign remittance reporting are related but separate compliance requirements.
Before initiating an overseas transfer, the remitter should assess the payment's taxability, applicable exemptions, TDS obligations, and the documentation required by the authorised dealer bank.
07Documents
What documents are required for Form 15CA and Form 15CB filing?
The required documents depend on the nature of the remittance, its taxability, the applicable filing category, and the requirements of the authorised dealer bank.
For Form 15CA
8 items- PAN details of the remitter: PAN of the individual or business making the foreign payment.
- TAN details, where applicable: If relevant to the remitter's tax deduction obligations.
- Invoice or payment agreement: An invoice, contract, or agreement explaining the purpose and nature of the payment.
- Foreign recipient details: Name, address, country of residence, and other prescribed information.
- Bank and remittance details: Remittance amount, currency, beneficiary, and proposed transfer.
- Form 15CB details: The acknowledgement or certificate details where Part C applies.
- Tax authority order or certificate: Such as one under Section 195 or Section 197, where required for the filing category.
- Tax residency and treaty documents: A Tax Residency Certificate (TRC), Form 10F, or other records where relevant.
For Form 15CB
9 items- PAN and tax details of the remitter: Identification and relevant tax deduction information.
- Invoice or contract: Establishing the nature, amount, and purpose of the payment.
- Foreign recipient information: Name, address, country of residence, and entity details, where applicable.
- Tax Residency Certificate (TRC): Evidence of the recipient's tax residence when claiming treaty benefits.
- Form 10F: Required where applicable under the relevant tax rules.
- Bank remittance details: Proposed amount, currency, beneficiary details, and purpose of payment.
- TDS calculation and payment details: Applicable tax deduction, rate, and deposit, where relevant.
- Supporting financial or tax documents: Additional records the CA requests to determine taxability.
- Applicable DTAA information: Details of the relevant treaty, where treaty provisions are being considered.
08Process
How to file Form 15CA and Form 15CB online
Both forms are filed on the Income Tax Department's e-filing portal. Where Form 15CB applies, the Chartered Accountant must complete the certification before the remitter submits the corresponding Form 15CA Part C.
Filing Form 15CB (by the Chartered Accountant)
Step 1: Log in to the Income Tax portal
The practising CA accesses the Income Tax e-Filing portal (opens in a new tab) using the appropriate registered account.Step 2: Navigate to income tax forms
Open the e-File section, go to the option for filing income-tax forms, and select Form 15CB.Step 3: Enter remittance details
Provide information about the remitter, foreign recipient, nature of payment, remittance amount, and other prescribed details.Step 4: Determine the tax treatment
The CA reviews the payment's taxability under Indian law and considers relevant DTAA provisions, where appropriate.Step 5: Complete and verify the certificate
Enter the tax rate, deduction details, and other particulars, then complete verification and submission, including digital signing where required.Step 6: Save the acknowledgement details
Retain the Form 15CB acknowledgement, which may be needed when completing Form 15CA Part C.
Filing Form 15CA (by the remitter)
Step 1: Log in to the Income Tax portal
The person making the remittance logs in to the official e-Filing portal.Step 2: Open Form 15CA
Navigate to the income-tax form filing section and select Form 15CA.Step 3: Select the applicable part
Choose the part based on the payment's taxability, amount, and reporting conditions.- Part A: generally, remittances up to ₹5 lakh in the year, chargeable to tax
- Part B: where an order or certificate from the tax authority applies
- Part C: where the conditions for Form 15CB are met
- Part D: generally, remittances not chargeable to tax in India
Step 4: Enter the required information
Provide remitter and recipient details, remittance amount, payment purpose, and other particulars for the selected part.Step 5: Provide Form 15CB details, where applicable
If filing Part C, enter the Form 15CB acknowledgement details and ensure they match the CA-certified information.Step 6: Review and submit
Check the payment details, tax information, and supporting particulars, then complete verification and submission.Step 7: Download the acknowledgement
Save the Form 15CA acknowledgement and provide it to the authorised dealer bank if required to process the remittance.
09Portals
Official government portal
Both forms are filed and certified on the Income Tax Department's e-Filing portal.
10Why Tax Uncle
Get Form 15CA and Form 15CB filing assistance from Tax Uncle
Tax Uncle helps individuals and businesses understand the applicable foreign remittance compliance requirements. Our assistance can include reviewing transaction details, identifying relevant documentation, and guiding you through the applicable Form 15CA filing process and CA certification requirements.
Whether you are making an overseas payment for consultancy, professional services, royalties, interest, or another business transaction, Tax Uncle can help you understand the relevant compliance steps before proceeding with your remittance.