Introduction to 15CA & 15 CB

• Taxation
• ||
• June 18, 2025

Have you also made a foreign payment recently, or are you planning to do so in the near future? If yes, you might be surprised to know that it’s not just about sending money through the bank and staying happy. There are certain filings that you need to keep in mind. Whether you’re a business paying a foreign vendor or an individual sending money to a relative overseas, one thing remains the same — you can’t ignore tax compliance. Before your money travels the world, make sure your paperwork does too. That’s where Forms 15CA and 15CB come in.
Before sending the money, remitters in India are subject to specific compliance requirements under Indian tax laws. In short, the remitter must make sure that any required tax is paid. For this, a submission of Form 15CA is required, and in many cases, Form 15CB is also submitted. These forms help the Income Tax Department assess whether any portion of the payment made to a non-resident is taxable in India.

Defining Form 15CA

Form 15CA contains a declaration by the remitter, which serves as a tool to collect information regarding payments made to non-residents that may be taxable in India.
It marks the beginning of a structured information-processing system that allows the Income Tax Department to monitor foreign remittances (international money transfers made by migrant workers to their families or dependents) and assess their taxability. For clarity, the Income Tax Department has also established an online facility for filing information. After that, prοοf οf οnline submissiοn shοuld be printed οut.

Who is the Remitter?

The remitter is the person or entity (individual, company, etc.) in India that sends the money abroad.

What is the role of the Bank here?

The responsibility of ensuring compliance has also extended to Authorized Dealers and banks. When it comes to filing taxes, it’s not just individuals who need to follow proper procedures and submit the necessary forms. Whenever an individual or entity makes a payment or remits money to a non-resident, certain tax compliances must be met. One key requirement is that the remitting bank must verify whether applicable taxes have been paid. Banks and Authorized Dealers are now more careful about collecting Form 15CA before sending money abroad. This is because, under the updated Rule 37BB, they are required to submit this form to the Income Tax Department if it’s needed during any tax-related proceedings.

Is TDS applicable?

Yes, according to Section 195 of the Income Tax Act, TDS must be deducted before any amount you pay to a non-resident, provided that it is chargeable to tax in India.
The bank is responsible for verifying if tax has been deducted or if the transaction has been certified by a Chartered Accountant. Failure to comply with these requirements can lead to unintended tax implications for the payer.

Example:

If an Indian company is paying fees to a consultant in the U.S., the Indian company is the remitter. The bank (like SBI, ICICI, etc.) processes the payment only after verifying that the tax forms are in

Defining Form 15CA

Form 15CB includes a certificate issued by a Chartered Accountant, which serves as validation for taxpayers regarding the applicable tax rate on the amount paid and the correct deduction of tax on payments made to non-residents.
It certifies the-

• Nature of the remittance
• Its taxability under Indian law
• whether the appropriate tax has been deducted at source or not

Relevance of 15CB in 15CA

Certain details are required from Form 15CB when filing Form 15CA. Therefore, it’s essential to complete Form 15CB with the assistance of a Chartered Accountant (CA) before submitting Form 15CA. A Chartered Accountant certified by ICAI issues Form 15-CB to certify whether a foreign remittance is taxable under Indian tax laws.

This certificate has been issued in accordance with Section 195(6) of the Income Tax Act. It serves as an alternative route for obtaining tax clearance, in addition to seeking a certificate directly from the Assessing Officer.

Eligibility Criteria for Form 15CB

• A Chartered Accountant’s certificate(Form 15CB) is required when
• The payment is made to a non-resident,
• The payment is taxable in India
• The total remittance exceeds Rs. 5 lakh in a financial year

Updated Rules for Filing Form 15CA and 15CB

The Income Tax Department has introduced changes to simplify compliance for foreign remittances. Here’s what has changed:

1. No forms are needed for remittances by certain individuals under the Liberalized Remittance Scheme (LRS), and no RBI approval is required.
2. Rule 37-BB provides the details for certain types of payments (e.g., imports, travel expenses, education fees) for which these forms are not required. Earlier, this list was limited to 28 items, and now it has been expanded to 33 items, which means more remittances are now exempt from filing Form 15 CA/CB.

List of Payments for Which Form 15CA/15CB is Not Required

There are 33 types οf fοreign remittanсes where yοu dο nοt require any submissiοn οf Fοrm 15СA οr Fοrm 15СB as mentiοned belοw:

Summary

Form 15CA must be filed online with the tax department. It is advisable to obtain 15СB even in cases where 15СA is not mandated. It is also in the interest of the assessee to obtain a tax determination in Form 15CB from a chartered accountant (CA), as non-resident taxation involves various complex issues and the consequences of non-dedication are severe.

Conclusion

At Mercurius, our team of professionals includes Chartered Accountants certified by the ICAI. We specialize in assisting clients with all compliance and filing requirements under Indian regulations. Whether it’s Form 15CA or the more technical Form 15CB, our experts ensure the smooth handling of your remittance-related queries, providing complete support in accordance with legal and procedural requirements.
If you are looking for more recent updates about these forms, their procedures, or any compliance associated with them, our team of experts can assist you.
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