What is Form 15 CA & CB? All You Need to Know
Sending money abroad can feel overwhelming, especially when understanding the compliance requirements. One key challenge Indian residents face is knowing when and how to file Form 15CA and Form 15CB, essential documents for making international payments to non-residents.
For example, if you run a software company in India and must pay USD 10,000 to a US-based UI/UX consultant, your bank will ask for Forms 15CA and 15CB before processing the payment.
Does that sound relatable? Don't worry. We're here to simplify it for you.
This blog will explain exactly what these forms are, why they matter, and how to file them easily. Let's get started!
What is Form 15 CA?
Form 15CA is a declaration form required under Indian tax law, specifically Section 195 of the Income Tax Act. It must be submitted by any person making payments to non-residents or foreign companies when such payments are deemed taxable in India. This form ensures that the correct amount of tax is deducted at source (TDS) before the payment (remittance) is made.
Form 15CA helps the Income Tax Department monitor foreign remittance details and their tax implications. It also assists non-residents in claiming credit for taxes deducted in India.
TDS rate declaration: The form requires disclosing the TDS rate applicable to the payment. This rate may be based on either Section 195 of the Income Tax Act or any lower rate specified in a relevant DTAA.
Deductions: The payer must ensure that TDS is deducted at the source before paying, reflecting compliance with Indian tax obligations.
What is Form 15 CB?
Form 15CB is a certificate from a Chartered Accountant (CA) required before filing Part C of Form 15CA. This certificate ensures compliance with the Double Taxation Avoidance Agreement and Income Tax Act for accurate tax deductions on payments. When making taxable payments above ₹5 lakhs to non-residents, you must first obtain this CA certificate and then use it to file Part C of Form 15CA.
Here's how it works:
- For taxable payments above ₹5 lakhs, your CA prepares Form 15CB
- The CA certifies compliance with both the Income Tax Act and applicable DTAA
- Only after getting Form 15CB can you proceed with filing Part C of Form 15CA
Important: You don't need Form 15CB if:
- Your payment is below ₹5 lakhs (only Part A of Form 15CA is needed)
- You have a specific order from the Assessing Officer under sections 195(2), 195(3), or 197
- The payment is not taxable under Indian law
Quick note: A DTAA is an agreement between two countries that helps determine the tax rates and obligations when making cross-border payments. For example, when paying a US-based consultant, the India-US DTAA helps decide which tax rate applies to your payment and how much TDS needs to be deducted before sending the money abroad.
TDS rate certification: In Form 15CB, the CA certifies the TDS rate applied to the payment. The rate could be determined as follows:
- The higher of either the rate specified under Section 195 or as per DTAA provisions.
- Additional surcharges and cesses may apply depending on specific circumstances.
Deductions overview: The CA also confirms that all necessary deductions have been made according to legal requirements before remittance.
What is Form 15 CA Content?
Let's break down Form no. 15CA into simple, digestible parts. Think of it as a document with four versions (A, B, C, and D), each for specific situations.
Part A: For taxable payments up to ₹5 lakhs
Use Part A when:
- Your payment to a non-resident is up to ₹5 lakhs in a financial year
- The payment is taxable under Indian law
- You don't have any special tax rate certificate from the Assessing Officer
Note the following:
- If your payment falls under Rule 37BB exemptions (like overseas education fees or business travel), you don't need to file any form at all. We have shared the list of payments where Form 15CA / 15CB is not required below
- If your payment is under ₹5 lakhs but not taxable (and not covered under Rule 37BB), use Part D instead
- Part A serves as your declaration about the payment details and applicable tax rates
You'll provide:
- Your details and your client's information
- Payment amount and purpose (like website development, content writing, etc.)
Part B: For special tax rates
Use this version when you've got special permission from the tax officer (Assessing Officer) under Section 195(2), 195(3), or 197 to:
- Pay lower tax than the standard rate
- Get an exemption from paying tax
Think of it as a pre-approved tax discount. When filing, you'll need to show the official permission letter.
Sections:
- Section 195(2): Allows a payer to approach the AO order details for a lower TDS deduction rate if they believe the entire payment may not be taxable
- Section 195(3): Permits the AO to grant specific orders regarding TDS deduction on payments made to non-residents
- Section 197: Enables taxpayers to obtain a certificate from the AO allowing them to deduct TDS at a lower rate or not at all, based on their tax liability
Details required: Payer (remitter) and recipient (remittee) information and the AO's order details.
Part C: For payments above ₹5 lakhs
This is for bigger payments. You'll need to use this when:
- Your foreign payment is more than ₹5 lakhs
- The payment is taxable in India
Important: You'll need your CA to provide Form 15CB first before filing this part. This extra step helps verify your tax calculations for larger amounts.
Part D: For tax-free payments
Use this when your payment isn't taxable in India. For example:
- Investments in overseas equity or debt securities
- Medical treatment abroad
- Business travel expenses
- Maintenance of Indian offices abroad
Even though these payments might be exempt, you must declare them through Part D of Form 15CA.
💡Quick Tip: When you're paying non-resident service providers (like international consultants, developers, or designers):
- Use Part A for taxable payments up to ₹5 lakhs
- Use Part C (along with Form 15CB) for taxable payments above ₹5 lakhs
- Use Part B if you have a special tax rate certificate from the Assessing Officer
- Use Part D if your payment is not taxable under Indian law
Remember: These forms are for sending money abroad, not for receiving international payments.
When is Form 15 CA CB not required?
Form 15CA is not required in the following situations:
- Payments listed under Rule 37BB: If the remittance falls under the specified categories in Rule 37BB of the Income Tax Rules, Form 15CA is not required. This includes certain payments that are exempt from TDS reporting:
- Remittances not chargeable to tax: If the remittance is not taxable under Indian law, there is no need to file Form 15CA
Form 15CB is not required in the following situations:
- Non-taxable payments: If the payment being made is not subject to tax in India, there is no requirement for Form 15CB
- Payments below ₹5 Lakh: For payments that do not exceed ₹5 lakh within a financial year, Form 15CB is not needed; only Part A of Form 15CA must be submitted
Existing AO certificate: If a certificate has been obtained from the Assessing Officer under Sections 195(2), 195(3), or Section 197, indicating that TDS does not apply or can be reduced, then Form 15CB is not required.
As per Rule 37BB, the following payments do not require Form 15 CA CB:
| Purpose code as per RBI | Nature of Payment |
| S0001 | Indian investment abroad -in equity capital (shares) |
| S0002 | Indian investment abroad -in debt securities |
| S0003 | Indian investment abroad -in branches and wholly owned subsidiaries |
| S0004 | Indian investment abroad -in subsidiaries and associates |
| S0005 | Indian investment abroad -in real estate |
| S0011 | Loans extended to Non-Residents |
| Payment for operating expenses of Indian shipping companies operating abroad. | |
| S0208 | Operating expenses of Indian Airlines companies operating abroad |
| S0212 | Booking of passages abroad -Airlines companies |
| S0301 | Remittance towards business travel. |
| S0302 | Travel under basic travel quota (BTQ) |
| S0303 | Travel for pilgrimage |
| S0304 | Travel for medical treatment |
| S0305 | Travel for education (including fees, hostel expenses etc) |
| S0401 | Postal services |
| S0501 | Construction of projects abroad by Indian companies including import of goods at project site |
| S0602 | Freight insurance – relating to import and export of goods |
| S1011 | Payments for maintenance of offices abroad |
| S1201 | Maintenance of Indian embassies abroad |
| S1202 | Remittances by foreign embassies in India |
| S1301 | Remittance by non-residents towards family maintenance and-savings |
| S1302 | Remittance towards personal gifts and donations |
| S1303 | Remittance towards donations to religious and charitable institutions abroad |
| S1304 | Remittance towards grants and donations to otherGovernmentsand charitable institutions established by the Governments. |
| S1305 | Contributions or donations by the Government to international institutions |
| S1306 | Remittance towards refund of taxes |
| S1501 | Refunds or rebates or reduction in invoice value on account of exports |
| S1503 | Payments by residents for international bidding”. |
What Details are Required to File Form 15 CA CB?
The details required to file form 15CA are as follows:
- Details of the remitter: The remitter must provide their full name, complete residential or business address, address where main business activities are conducted, Permanent Account Number (PAN), email address and mobile number, and legal status (individual, firm, company, etc.)
- Details of the receiver remittee: Information needed includes the remittee's full name, complete address, address where they conduct primary business activities, and the country to which the remittance is being made
- Details of the remittance This includes the total amount of remittance in Indian currency, the currency in which the payment is being made, a description of the purpose of payment
- Bank details of the remitter: The remitter must provide the name of the bank from which the remittance will be processed, the name of the branch where the account is held, and the Basic Statistical Return (BSR) code for the bank branch
The details required to file form 15CB are as follows:
- Certificate from a chartered accountant (Form 15CB): This certificate verifies that TDS has been deducted correctly and that all tax obligations have been met according to Indian tax laws and any applicable Double Taxation Avoidance Agreements (DTAAs)
- Supporting documents needed from the non-resident (to be collected by the payer):
- Form 10F - a declaration about tax residency status and eligibility for DTAA benefits
- Tax Residency Certificate from the non-resident's country tax authorities
- A declaration stating whether they have a permanent establishment in India
Note: These supporting documents help your CA verify the applicable tax rates and prepare Form 15CB, but they're not directly submitted with the form.
How to file Form 15 CA and CB Online?
The steps to file Form 15CA online are as follows:
Step 1: Access the e-filing portal. Visit the Income Tax forms page in the e-filing portal and log in using your credentials (PAN, user ID, and password).
Step 2: Navigate to form selection. Go to e-File > Income Tax Forms > File Income Tax Forms, and select Form 15CA from the list.
Step 3: Choose the appropriate part of Form 15CA. Once at the instructions page, select the relevant part based on your situation: Part A for such remittances not exceeding ₹5 lakh, Part B if you have obtained a certificate from the Assessing Officer under Sections 195(2), 195(3), or 197, Part C for remittances exceeding 5 lakh rupees that are chargeable to tax (requires prior submission of Form 15CB), or Part D for remittances not chargeable to tax.
Step 4: Fill in the required details. In the selected part of Form 15CA, enter all necessary information as prompted, including details of both sender and receiver, nature of payment, and remittance amount.
Step 5: Verification and submission. Complete any required verification sections and submit Form 15CA online. A confirmation pop-up will appear upon successful submission, and you should receive an acknowledgement at your registered email address.
Step 6: Accessing submitted forms. After submission, you can view your submitted Form 15CA under the "Worklist" tab by selecting "For Your Information."
The steps to file Form 15CB online are as follows:
Step1: Preparation by chartered accountant (CA)
The CA must be registered on the Income Tax e-filing portal and have a valid Digital Signature Certificate (DSC). You must provide your CA with all necessary documentation to pay a non-resident.
Step 2: CA completes Form 15CB
The CA prepares Form 15CB, certifying that the payment complies with Indian tax laws and any applicable Double Taxation Avoidance Agreements (DTAAs).
Step 3: Log into the e-filing portal
The CA must log in using their credentials to visit the Income Tax e-filing portal.
Step 4: Access Form 15CB. After logging in, navigate to e-File > Income Tax Forms > File Income Tax Forms, and select Form 15CB from the list.
Step 5: Submission process Choose "Online" as the submission mode, enter the PAN of both the taxpayer and the CA, upload the prepared XML file generated from the downloaded utility, upload the DSC file generated using the DSC Management Utility, and click on the Submit button. You can also use the search box for any assistance.
Confirmation: Upon successful submission, a confirmation message and acknowledgment number (or transaction ID) will appear. The CA can view the uploaded Form 15CB under their dashboard. Keep the acknowledgement number for your future reference.
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Is it mandatory to submit Form 15CB?
Yes, it's mandatory for taxable payments exceeding ₹5 lakh to non-residents. A CA must certify it before submitting Form 15CA Part C.
Can Form 15CA be withdrawn?
How do I e-Verify Form 15CA?
What is the validity period for Form 15 CA CB?
What is the penalty for not filing Form 15 CA CB?
