Form 15CA is a declaration of remitterfiled electronically with the Indian Income Tax Department. It is used to reportpayments/remittances made to non-residents and helps ensure tax complianceunder Section 195 of the Income Tax Act.
Form 15CB is a certificate issued by a Chartered Accountant (CA) that certifies the applicability of with holding tax (TDS) on the remittance. It includes details like nature of the payment, DTAA provisions (if applicable), and tax deducted.
Form 15CA is required before making a foreign remittance to a non-resident, except for certain exempted categories. It applies even if the remittance is not taxable in India, subject to the exceptions listed in Notification No. 67/2013.
Form15CB is required if the remittance is taxable under Indian tax law and exceeds ₹5 lakh in a financial year, unless covered under exemptions. It must be obtained from a Chartered Accountant before uploading Part C of Form15CA.
Part A – For taxable remittances ≤ ₹5 lakh in a FY. Part B – For taxable remittances > ₹5 lakh where a certificate/order under Section 195(2)/195(3)/197 has been obtained from the AO. Part C – For taxable remittances > ₹5 lakh and Form 15CB has been obtained from a CA. Part D – For non-taxable remittances covered under Rule 37BB or DTAA exemption (no TDS applicable).
A TRC is a certificate issued by the tax authorities of the recipient’s country of residence, confirming that the person is a resident of that country for tax purposes. It is a prerequisite to claim benefits under the Double Taxation Avoidance Agreement(DTAA).
Yes. Without a valid TRC, there mitter cannot apply the lower tax rates under a DTAA. It must be accompanied by Form 10F and other relevant declarations if required.
Notification No. 67/2013 (dated August 2,2013) issued by the CBDT provides a list of 33 remittance categoriesthat are exempt from furnishing Form 15CA and 15CB. These include:Travel expenses Education fees Imports (goods) Remittances for investments, etc.A full list is available in Rule 37BB ofthe Income Tax Rules.
Examples include: Remittance for foreign travel Gifts and donations Payments for imports (goods only) Remittance towards education or medical treatment abroad Refunds for non-resident investmentsNote: Even if exempt from 15CA/15CB, banksmay still require a basic declaration or TRC.
The remitter (payer) is responsible for furnishing Form 15CA. If Form 15CB is applicable, it must be obtained from a Chartered Accountant before uploading the relevant part of Form15CA.
Yes. If the nature of the remittance and the recipient are the same, and the payment is made in tranches, multiple 15CAs may be filed referencing the same 15CB.
Yes, if the remittance is taxable in India. If it falls under the exempt list (e.g., repatriation of NRO funds post-tax), it may be exempt. However, banks often still require documentation like TRC or Form 10F for verification.
Form 15CA is filed electronically on the Income Tax e-filing portal. Form 15CB must be prepared and digitally signed by a Chartered Accountant, then referenced in Part C of Form 15CA.
Failure to file or incorrect filing maylead to: Penalties under Section 271-I – ₹1 lakh. Disallowance of expenses for tax purposes.Scrutiny or notices from tax authorities. Delays in remittance processing by banks.
No. The payer must ensure: The non-resident provides a valid TRC. Form 10F and a no-PE declaration (if applicable) are submitted. Only then can the lower DTAA rate be applied.Here’s an additional FAQ you can include in the same section to cover Rule 37BB of the Income Tax Rules:
Rule 37BBgoverns the reporting requirements for payments made to non-residents.It mandates that: Form 15CA must be furnished for all remittances outside India, whether taxable or not, unless specifically exempted. Form 15CB is required from a Chartered Accountant for taxable payments exceeding ₹5 lakh in a financial year (unless covered under a lower deduction certificate or DTAA).The rule also includes an annexure(as per Notification No. 67/2013) that lists 33 categories offoreign remittances which are exempt from filing Form 15CA and 15CB.
