15CA-15CB Filing Services
15CA-15CB Filing Services – Foreign Remittance Compliance Made Easy
If you’re an Indian resident making payments to or receiving payments from a foreign entity, you must comply with the provisions of the Income Tax Act, 1961. This includes mandatory submission of Form 15CA and Form 15CB before remitting funds abroad. At Casela Advisors, we specialize in simplifying the complex process of Form 15CA-15CB filing, ensuring seamless and fully compliant international transactions for individuals, startups, and businesses alike.
Understanding Section 195 of the Income Tax Act
Under Section 195 of the Income Tax Act, 1961, any person responsible for making payments to a non-resident or foreign company must deduct tax at source (TDS) at applicable rates before making the payment.
To ensure transparency and tax compliance:
- A Form 15CA declaration must be submitted electronically.
- A Form 15CB certificate, certified by a Chartered Accountant, is required when the payment exceeds INR 5,00,000.
These forms allow the Indian Income Tax Department to track foreign remittances and enforce tax deductions effectively.
What are Form 15CA and Form 15CB?
Form 15CA – Online Declaration of Remittance
Form 15CA is an online declaration filed by the remitter. It serves as a means for the Income Tax Department to monitor remittances made to non-residents and assess their taxability under Indian law.
Form 15CB – Chartered Accountant Certification
Form 15CB is a certification by a Chartered Accountant, required for remittances that exceed INR 5 lakhs. This form confirms that appropriate taxes have been deducted and the transaction complies with the Double Taxation Avoidance Agreement (DTAA), if applicable.
When Are These Forms Applicable?
✅ Applicability of Form 15CA
- Required for any foreign remittance, regardless of taxability.
- Applies to residents, non-residents, Indian and foreign companies.
- Necessary if income is deemed to accrue, arise, or is received in India under Section 5 of the Income Tax Act.
✅ Applicability of Form 15CB
- Required if:
- Remittance is taxable under Indian law.
- Remittance exceeds INR 5,00,000.
- No exemption or lower TDS certificate has been obtained from the Assessing Officer.
❌ When Are These Forms Not Required?
❌ Exemption from Form 15CA
- If payment is covered under Rule 37BB‘s exempt list.
- Remittance is below INR 5 lakhs in a financial year (individual only).
- For remittances under Liberalised Remittance Scheme (LRS) like:
- Education abroad (within RBI limits)
- Personal gifts and donations
- Foreign tour/travel (within permissible limits)
❌ Exemption from Form 15CB
- If the payment is not taxable in India.
- If the aggregate remittance during the financial year is below INR 5,00,000.
- If tax has already been assessed by the Income Tax Officer or falls under a DTAA exemption.
✅ List of Exempt Remittances (No Form 15CA/15CB Needed)
Some common remittances where neither form is required:
- Foreign direct investment or Indian investment abroad
- Advance payments for imports
- Freight, insurance, and travel expenses
- Education and medical treatment abroad
- Personal gifts and donations
- Operating costs of Indian airlines/shipping firms abroad
- Payments to diplomatic missions
- Refunds of export overpayments or tax refunds
📄 Structure and Contents of Form 15CA
Form 15CA is divided into 4 parts:
- Part A – Remittance up to INR 5 lakhs (taxable)
- Part B – Remittance above INR 5 lakhs with AO certificate under Section 195(2)/(3)/197
- Part C – Remittance above INR 5 lakhs with CA certification (Form 15CB)
- Part D – Remittance not taxable under Indian law
🧾 Structure and Contents of Form 15CB
Form 15CB includes:
- Part A: Details of the remitter, recipient, and remittance
- Part B: Taxability assessment under the Income Tax Act and DTAA
- Part C: Certification of correctness by a Chartered Accountant
- Annexure (optional): Additional transaction information
🚫 Penalty for Non-Compliance
Failure to file Form 15CA or 15CB can attract a penalty of INR 10,000 per default, making timely filing critical.
📝 Details Required to File Form 15CA & 15CB
To process your foreign remittance, the following details are necessary:
- PAN of remitter and recipient
- Nature, purpose, and amount of the remittance
- Applicable section of Income Tax Act or DTAA article
- Bank details of both parties
- Form 15CB certificate from a practicing Chartered Accountant
📌 Step-by-Step Procedure to File Form 15CA and Form 15CB
- Obtain PAN: Ensure the remitter has a valid PAN.
- Assess Requirement for Form 15CB: Mandatory for taxable remittances over INR 5 lakhs.
- Chartered Accountant Certification: Get a CA to issue and digitally sign Form 15CB.
- File Form 15CA: Upload via the Income Tax e-filing portal.
- Submit Both Forms Online: Ensure both forms are linked for cross-verification.
- Download Acknowledgment: Save the generated acknowledgment for records.
🌐 Why Choose Casela Advisors for 15CA-15CB Filing?
Casela Advisors offers a full-service solution for your foreign remittance compliance:
- Expert Chartered Accountants
- Fast turnaround and end-to-end support
- 100% compliance with Indian Income Tax and FEMA regulations
- Affordable pricing and transparent service
- Trusted by businesses, NRIs, and startups across India and abroad
Faqs
FREQUENTLY ASKED QUESTIONS
Form 15CA is a declaration form that must be submitted electronically by the remitter to the bank before paying a non-resident. Form 15CB is a certificate issued by a Chartered Accountant (CA) to verify the deduction of taxes and the completion of other regulatory requirements.
Form 15CA is a declaration form submitted by the remitter to the bank. At the same time, Form 15CB is a certificate issued by a CA to verify the deduction of taxes and the completion of other regulatory requirements.
Form 15CA and 15CB must be filed by a person responsible for remittance outside India. The remitter can be an individual, a company, or any other entity paying a non-resident or a foreign company.
Different types of transactions require Form 15CA and 15CB filing. Some of them are:
- Payment for import of goods or services.
- Payment for royalty or technical fees.
- Remittance of dividends.
- Payment for interest on loans or deposits.
- Payment for foreign collaborations or joint ventures.
- Remittance for education-related expenses.
- Remittance for medical treatment abroad.
- Remittance for travel expenses.
- Remittance for payment of insurance premium.
- Any other taxable payment or remittance under the Income Tax Act, 1961.
Form 15CA and 15CB are not mandatory for all foreign remittances. The requirement to file these forms depends on the nature and amount of the remittance.
As per the current regulations, Form 15CA and 15CB are mandatory for remittances made outside India, except for the following:
- Remittances are covered under specified exemptions as per Rule 37BB of the Income Tax Rules, 1962. Some examples of exempted remittances include gifts and donations, payments made by the Government, payments for certain investments, etc.
- Remittances below INR 5 lakhs are not subject to TDS under Section 195 of the Income Tax Act, 1961.
The information provided in Form 15CA is verified by the Authorized Dealer Bank (AD Bank) and is cross-checked with the information in Form 15CB.
Form 15CA-15CB must be filed electronically through the Income Tax Department’s website.
Non-compliance with the requirement to file Form 15CA and 15CB can attract penalties and interest. The penalty for not filing Form 15CA and 15CB is covered under Section 271-I of the Income Tax Act, 1961. As per the current regulations, the penalty for non-filing or incorrect filing of Form 15CA and 15CB is INR 1 lakh or equal to the transaction amount, whichever is lower. The penalty can be imposed by the Assessing Officer (AO) after providing an opportunity for the remitter to explain the reasons for non-compliance.
