Form 15CA and 15CB — Foreign Remittance Compliance Under Income Tax

Before making any foreign remittance (payment to a non-resident or overseas entity), Indian payers must comply with Section 195 of the Income Tax Act — which requires filing Form 15CA (online declaration) and in many cases Form 15CB (CA certificate). These forms ensure that TDS obligations on foreign payments are met. Here is the complete guide.

Why Form 15CA/15CB?

• Section 195 requires TDS deduction on any payment to a non-resident that is chargeable to income tax in India
• Form 15CA is the payer's online declaration to the income tax department about the remittance
• Form 15CB is the CA's certificate confirming the nature of remittance, applicable DTAA provisions and TDS deducted
• The authorised dealer bank requires 15CA (and 15CB where applicable) before processing the SWIFT payment

When Is Form 15CA Required? — Parts A/B/C/D

• Part A: Remittance does not exceed ₹5 lakh in aggregate during the financial year AND is chargeable to tax — only Form 15CA Part A required (no 15CB)
• Part B: Remittance exceeds ₹5 lakh in the financial year AND chargeable to tax — Form 15CA Part B required after obtaining Form 15CB from CA
• Part C: Remittance for which an order/certificate from AO is obtained under Section 195(2)/195(3)/197 — Form 15CA Part C with the AO order
• Part D: Remittance that is NOT chargeable to income tax in India — Form 15CA Part D only; no 15CB required

Exempt Remittances — No Form 15CA Required

• Rule 37BB provides a list of 33 specified nature of remittances that do not require Form 15CA/15CB — includes: imports of goods (documents submitted to bank for imports), remittance for travel/tourism, remittance for educational fees (up to applicable limits), remittance for medical treatment abroad, dividend remittance already taxed, etc.
• Always check the latest Rule 37BB list — it has been updated multiple times

Online Filing Process

• Login to incometax.gov.in → e-File → Income Tax Forms → Form 15CA
• For Part B: The CA must first login and file Form 15CB online — the system generates an Acknowledgement Number
• The payer then uses the 15CB Ack. Number to fill Form 15CA Part B online
• Submit to bank along with SWIFT instruction

Conclusion

Form 15CA and 15CB are mandatory compliance for most foreign remittances — ensuring income tax obligations on non-resident payments are documented. SPOTON provides Section 195 advisory, Form 15CB certification and 15CA filing for businesses making international payments in Kerala. Contact us for expert foreign remittance compliance services.