Form 15CA & 15CB —
Foreign Remittance
Compliance Guide 2025
Form 15CA is a declaration by the remitter and Form 15CB is a CA certificate — together required before making any payment to a non-resident or foreign company under Section 195 of the Income Tax Act. Form 15CB is needed when the remittance exceeds ₹5 lakh and is taxable. Banks do not process foreign remittances without these forms. TAXAJ's CA team files both within 24–48 hours.
April 2026 Update — New IT Act 2025: Forms 15CA & 15CB Renamed to Forms 145 & 146
Under the Income Tax Act, 2025 (effective April 1, 2026), Form 15CA has been redesignated as Form 145 and Form 15CB as Form 146 under Section 393 of the new Act (replacing Section 195 of IT Act 1961). The purpose, applicability, and filing process remain substantially the same — only the form numbers and governing section references have changed. Banks now require Forms 145 & 146 instead of 15CA & 15CB for remittances from April 1, 2026. TAXAJ files both the old and new forms — depending on the applicable assessment year.
Form 15CA & Form 15CB — Complete Guide to Foreign Remittance Tax Compliance
Whenever a person resident in India makes a payment to a non-resident individual (NRI, foreign citizen, OCI, PIO) or a foreign company, two things must be verified before the bank will process the remittance: (1) whether the payment is subject to Indian income tax and TDS under Section 195 of the Income Tax Act, 1961, and (2) whether tax has been deducted or why it hasn't been. Forms 15CA and 15CB together serve as this compliance mechanism — a structured way for the remitter to declare the nature of the payment and for a CA to certify the tax treatment.
Form 15CA is a self-declaration filed by the remitter (the person making the payment) on the Income Tax e-filing portal before the remittance is made. It records details of the remitter, the non-resident recipient (remittee), nature of remittance, amount, and currency. The form has four parts — Part A, B, C, or D — and which part is applicable depends on the amount and taxability of the remittance. Form 15CB is a certificate issued by a Chartered Accountant (the CA must be registered on the IT portal). The CA certifies the nature of the remittance, applicable tax rate, DTAA benefit (if any), and confirmation that tax has been correctly deducted. Form 15CB must be filed by the CA before Form 15CA Part C is filed by the remitter — the CA's ARN (Acknowledgement Receipt Number) is needed to complete Part C of 15CA.
Form 15CA vs Form 15CB — Key Differences
Both forms are part of the same compliance framework but serve different roles:
- Form 15CA: Filed by the remitter (payer). A declaration. Filed online on the IT e-filing portal. Mandatory for applicable remittances. Can have Parts A, B, C, or D depending on the scenario.
- Form 15CB: Filed by a Chartered Accountant. A certificate (not a declaration). Required only when remittance exceeds ₹5 lakh and is taxable, and no AO order under Section 195(2)/197 has been obtained. Filed by CA on behalf of the remitter, before Part C of 15CA is filed.
Who Must File Form 15CA?
As per Rule 37BB, any person responsible for paying to a non-resident (not being a company) or to a foreign company must furnish information in Form 15CA before making the remittance. This covers: companies paying royalties, technical fees, interest, or dividends to foreign entities; Indian residents paying NRIs for services, property purchase, or investment exits; exporters making advance payments to foreign suppliers; individuals paying tuition fees, medical expenses, travel expenses abroad that involve a non-resident recipient; and NRIs repatriating money from their NRO accounts to NRE or overseas accounts.
Form 15CA — Part A, B, C or D? Select Your Scenario
Form 15CA has four parts. Selecting the wrong part is one of the most common errors — it can delay your remittance or trigger bank rejection. Click to see which part applies to you.
Part A
Taxable · Under ₹5 lakh · No 15CB
No 15CB RequiredPart B
Taxable · Over ₹5 lakh · AO Order obtained
AO Certificate OnlyPart C
Taxable · Over ₹5 lakh · 15CB by CA
15CB MandatoryPart D
Not taxable — no TDS applicable
No TDS — No 15CB✅ Form 15CA — Part A (Taxable remittance ≤ ₹5 lakh in FY)
When Does Part A Apply?
- The remittance or aggregate of all remittances in the FY does not exceed ₹5 lakh
- The remittance is chargeable to tax in India (has an income element)
- No certificate from Assessing Officer under Section 195(2)/197 has been obtained
- Best for small service payments, royalties under ₹5 lakh to non-residents
Filing Process — Part A
- Log in to income tax e-filing portal
- Go to e-File → Income Tax Forms → File Income Tax Forms → Form 15CA
- Select Part A · Fill remitter, remittee, and remittance details
- e-Verify using DSC or EVC
- Download and provide acknowledgement to bank
🔵 Form 15CA — Part B (Taxable > ₹5 lakh + AO Order Section 195/197)
When Does Part B Apply?
- Remittance or aggregate exceeds ₹5 lakh in the FY
- Remittance is chargeable to tax in India
- The non-resident has obtained a Nil/Lower deduction certificate u/s 197 from their Assessing Officer
- Or: the remitter has obtained an order u/s 195(2) or 195(3) determining the appropriate amount
Section 195(2) / 197 Certificates
- Section 197: Non-resident applies for Nil/Lower TDS certificate → AO grants based on DTAA / income quantum
- Section 195(2): Remitter applies to AO to determine what portion of payment is taxable
- Section 195(3): Non-resident applies for general NIL withholding authorisation
- Certificate must be current and valid for the financial year
🟡 Form 15CA — Part C (Taxable > ₹5 lakh + Form 15CB from CA) — Most Common
When Does Part C Apply?
- Remittance or aggregate exceeds ₹5 lakh in the FY
- Remittance is chargeable to tax in India
- No AO order u/s 195(2)/197 has been obtained
- This is the most common scenario for business payments, royalties, professional fees, FC-TRS payments to NR sellers, NRI repatriation above ₹5 lakh, etc.
Part C Workflow — Step by Step
- Remitter adds CA on IT portal ("My Chartered Accountant")
- Remitter "Assigns" Form 15CA Part C to CA
- CA logs in → files Form 15CB (6 sections) → generates ARN
- Remitter accepts Form 15CB on portal
- Remitter fills Part C of Form 15CA using CA's ARN
- Remitter e-Verifies using DSC or EVC
- Download acknowledgement → submit to bank
⚪ Form 15CA — Part D (Remittance NOT chargeable to tax)
When Does Part D Apply?
- The remittance is not chargeable to income tax in India under the IT Act or applicable DTAA
- No TDS deduction required
- Examples: payment for goods (import), certain capital account transactions, reimbursement of expenses with no income element
- The remitter still files Part D as a declaration of why no tax applies
- Bank accepts Part D acknowledgement instead of 15CB
Part D vs Exempted Remittances
- Part D ≠ exempted under Rule 37BB
- Rule 37BB exempt remittances: Form 15CA NOT required at all (28 categories)
- Part D: Form 15CA IS required, but the payment has no tax component
- Common confusion: import payments for goods → generally Rule 37BB exempt (no 15CA) · Professional fee payments to NR → generally taxable (Part C with 15CB)
- TAXAJ analyses taxability before advising which part applies
When Is Form 15CA / 15CB NOT Required? — 28 Exempted Remittance Categories
Rule 37BB(3) lists 28 categories of remittances that do not require Form 15CA or Form 15CB at all. Click each category to see what's included.
| Category | Description | Form 15CA Required? |
|---|---|---|
| Indian embassies / diplomats abroad | Remittances by/to Indian embassies and diplomatic missions | NOT Required |
| RBI regulated transactions | Remittances where prior RBI approval is not required (as specified) | NOT Required |
| International organisations | Remittances to UN, WHO, IMF, World Bank, and similar international bodies | NOT Required |
| Foreign central banks | Payments between central banks for monetary or reserve management | NOT Required |
| ADB, AIIB, IDA contributions | India's contribution to international development banks | NOT Required |
| Category | Description | Form 15CA Required? |
|---|---|---|
| Import of goods | Payments to non-residents for purchase of goods / merchandise (tangible imports) | NOT Required |
| Shipping freight charges | Payment of freight to foreign shipping companies for goods imported into India | NOT Required |
| Airlines / Air freight | Payment of air freight charges for cargo imported into India | NOT Required |
| Insurance premiums — non-life | Payment of premiums to foreign insurers for policies on Indian assets | NOT Required |
| Foreign exchange trading losses | Payments arising from losses in forex trading / hedging transactions | NOT Required |
| Bank charges — SWIFT / NOSTRO | Bank charges, correspondent banking fees, SWIFT charges to foreign banks | NOT Required |
| Category | Description | Form 15CA Required? |
|---|---|---|
| Indian students abroad — personal education expenses | Payment of tuition / fees directly to foreign educational institutions by individuals (not companies) | NOT Required (Individual only) |
| Medical expenses abroad | Payment for medical treatment outside India (individual patient) | NOT Required (Individual only) |
| Salary to non-residents employed in India | Salary paid to non-resident employees working in India — covered under Section 192, not 195 | 195 N/A — Section 192 |
| NRO to NRE transfer (within India) | Transfer from NRO account to NRE account within India (same person, no actual remittance abroad) | NOT Required (same-person NRO/NRE) |
| Category | Description | Form 15CA Required? |
|---|---|---|
| Travel expenses — personal | Payments by individuals for foreign travel (tickets, hotels) to non-Indian entities | NOT Required |
| Foreign currency travel card loading | Loading of forex travel cards for personal use by individuals | NOT Required |
| Emigration — sale of assets | Remittances by individuals at time of emigration from India | NOT Required |
| Gifts / donations up to LRS limit | Personal remittances by individual under the Liberalised Remittance Scheme (LRS) of RBI — ₹10 lakh limit | Check LRS rules · May need Part A/D |
| Maintenance of NRI family members | Remittance by an NRI from foreign income to maintain family in India — reverse not covered | Case-specific · Consult TAXAJ |
When Do You Need Form 15CA / 15CB? — Top Scenarios
NRI Property Sale — Repatriation
When an NRI sells property in India and wants to repatriate proceeds abroad. The buyer deducts TDS (Section 195 / 194IA), and the NRI/seller needs Form 15CA-CB to remit net proceeds via AD Bank. Typically Part C (above ₹5 lakh) with Form 15CB.
TDS on Property Sale →FC-TRS Payment to NR Seller
When a resident buys shares from a non-resident investor (secondary sale), the payment to the NR seller must be accompanied by Form 15CA-CB. The capital gain in the hands of the NR seller determines TDS obligation under Section 195.
FC-TRS Filing →Software / Technical Services Fee
Indian companies paying for SaaS subscriptions, software licenses, cloud services, consulting, or technical assistance to foreign companies must file Form 15CA-CB. These are typically "Fees for Technical Services" (FTS) taxable under Section 9(1)(vii) — DTAA may reduce TDS rate.
Corporate Tax Advisory →Royalties to Foreign IP Holders
Royalties paid by Indian companies to foreign IP owners (patents, trademarks, software, copyrights) attract TDS under Section 9(1)(vi) at 20% (or DTAA rate). Form 15CB analysis of the applicable DTAA Article on Royalties is critical — rates vary from 10–25% across treaties.
Virtual CFO Services →NRO Account Repatriation
NRIs repatriating funds from NRO accounts (interest earned in India, rental income, capital gains) to NRE or foreign bank accounts require Form 15CA-CB. Banks mandate this before processing the outward remittance. The NRI's income tax position in India determines taxability.
NRI Tax Filing →Dividend to Foreign Shareholders
Indian companies paying dividends to non-resident shareholders must deduct TDS and file Form 15CA-CB. Post-2020, dividends are taxable in the hands of shareholders — TDS under Section 196D (FPI) or Section 195 (others) applies at 20% (or DTAA rate if lower).
Company Compliance →How to File Form 15CA & 15CB — Step-by-Step Process (Part C)
Part C (the most common scenario — taxable, above ₹5 lakh, no AO order) requires the CA to file first. TAXAJ handles Steps 1–5, and you complete Step 6 in 2 minutes.
Analyse the Remittance — Taxability & DTAA Check
The most critical step — and where most errors occur. TAXAJ's CA analyses the nature of the remittance: is it royalty, FTS, interest, capital gains, dividend, business income, or an exempt category? Then applies the India-country DTAA (if applicable) to determine if tax can be reduced or eliminated. Common DTAA countries: USA (zero FTS under Manufacturing Clause), UK, UAE (zero tax on most income), Singapore, Germany, Netherlands, Australia, Canada, Japan. The CA also determines whether the NR qualifies for DTAA benefit (Tax Residency Certificate required), which Form 15CA Part applies, and the correct TDS rate.
Remitter Adds CA on IT Portal & Assigns Form 15CA Part C
The person making the remittance (remitter) logs in to the Income Tax e-filing portal → Goes to "Authorised Partners" → "My Chartered Accountant (CA)" → Adds the CA using their Membership Number. Once the CA is added, the remitter goes to Form 15CA, selects Part C, fills in basic details, and clicks "Assign to CA" — sending the form to the CA for Form 15CB certification. TAXAJ provides its CA membership number for easy registration. Alternatively, for clients who prefer TAXAJ to handle everything, TAXAJ accesses the filing using the remitter's credentials or through power of attorney.
CA Files Form 15CB — 6 Sections Certified
The TAXAJ CA logs in to the IT portal and completes Form 15CB in 6 sections: (1) Remitter details, (2) Remittee (non-resident payee) details, (3) Remittance details — amount, currency, purpose, (4) Nature of remittance — code under Rule 37BB, (5) Tax determination — applicable DTAA article, tax rate, whether DTAA benefit applies, TDS amount deducted, (6) Certification — CA's declaration that the information is correct and tax laws have been complied with. The CA signs using their DSC (Digital Signature Certificate). Upon successful filing, a Form 15CB Acknowledgement Receipt Number (ARN) is generated.
Remitter Accepts Form 15CB on Portal
After TAXAJ CA files Form 15CB, the remitter receives a notification. The remitter logs back into the portal → Goes to "Pending Actions" → Sees the Form 15CB filed by the CA → Clicks "Accept" (after reviewing the CA's certification). If any information is incorrect, the remitter can "Reject" with a reason, and the CA corrects and re-files. Once accepted, the remitter proceeds to complete Part C of Form 15CA using the CA's ARN. This step is done by the remitter themselves — TAXAJ guides through this step via WhatsApp in under 5 minutes.
Remitter Completes & e-Verifies Form 15CA Part C
With the CA's ARN now linked, the remitter completes the remaining details in Part C of Form 15CA: CA details, ARN reference, and any additional attachments. The form is then e-Verified using DSC (Digital Signature Certificate) or EVC (Electronic Verification Code). DSC must be used if the remitter has a registered DSC; otherwise EVC via Aadhaar OTP, net banking, or bank account validation is acceptable. Upon successful e-Verification, a Transaction ID and Acknowledgement Number are generated — download and preserve these as compliance proof.
Submit to Bank & Complete Remittance
The printout or PDF of the accepted Form 15CA acknowledgement and Form 15CB certificate must be submitted to the Authorized Dealer (AD) Bank before the bank will process the foreign remittance. The bank verifies the documents, deducts TDS on the remittance amount (if applicable), and processes the SWIFT transfer to the non-resident's foreign bank account. The bank is now required under the revised Rule 37BB to retain a copy of Form 15CA submitted by the remitter for its own regulatory compliance. After remittance, TAXAJ advises on filing the TDS return (Form 27Q) for the deducted TDS — typically quarterly.
Non-Compliance — Penalties for 15CA / 15CB Defaults
| Default | Section | Penalty | Who Is Liable |
|---|---|---|---|
| Form 15CA / 15CB Filing Defaults | |||
| Failure to file Form 15CA before remittance | 271-I | ₹1,00,000 per default | Remitter (payer) |
| Furnishing incorrect information in 15CA / 15CB | 271-I | ₹1,00,000 per default | Remitter or CA |
| CA certifying incorrect information in 15CB | 271-I / 288 | Penalty + potential ICAI disciplinary action | Chartered Accountant |
| TDS Default — Section 195 | |||
| Failure to deduct TDS on taxable remittance | 201(1) + 201(1A) | Tax demanded + 1% interest per month from deductibility date · Disallowance of expense (Section 40(a)(i)) | Payer (Assessee in Default) |
| TDS deducted but not deposited | 201(1A) | 1.5% interest per month from deduction to deposit date | Payer |
| Late filing of TDS return (Form 27Q) | 234E | ₹200 per day until return filed | Payer (deductor) |
| Bank Liability | |||
| Bank processing remittance without Form 15CA | Rule 37BB | Bank liable for not retaining and reporting Form 15CA | Authorized Dealer Bank |
| Disallowance of business expense (40(a)(i)) | 40(a)(i) | Payment disallowed as deduction in payer's income tax return if TDS not deducted | Payer Company |
Form 15CA & 15CB — Frequently Asked Questions
Form 15CA / 15CB Filing — Service Packages
TAXAJ's CA team files Form 15CB with full DTAA analysis and guides you through Part C of Form 15CA — bank-ready documentation within 24–48 hours.
- ✓Taxability & DTAA analysis
- ✓Form 15CB filing by CA (DSC-signed)
- ✓Form 15CA Part A/C/D guidance
- ✓Bank-ready acknowledgement
- ✓Delivery: 24–48 hours
- ✓All Single Remittance services
- ✓NRO account income analysis
- ✓Bank documentation + liaison
- ✓NRI ITR filing co-ordination
- ✓Form 27Q (TDS return) coordination
- ✓Up to 12 Form 15CB filings/year
- ✓DTAA analysis for recurring payments
- ✓Dedicated CA relationship
- ✓Form 27Q quarterly TDS return
- ✓Priority 24-hour delivery