Introduction

Whenever money is sent outside India — whether for import payments, consultancy fees, royalty, foreign services, or investments — the Income Tax Act requires mandatory reporting through Form 15CA and Form 15CB.

These forms ensure that the remittance complies with the Foreign Exchange Management Act (FEMA) and that tax liabilities (TDS), if any, are properly addressed before the funds leave India. Banks will not process most foreign remittances unless 15CA/15CB is filed correctly.

This guide by Bisways Consulting Group explains what Form 15CA and 15CB are, when they are required, who files them, and the complete step-by-step filing process.

What Is Form 15CA?

Form 15CA is an online declaration submitted by the remitter (payer) to the Income Tax Department before making a foreign payment.

It contains:

• Nature of remittance

• Country and currency

• Amount

• Applicable tax rate

• TDS deduction details

• Whether Form 15CB is required

It acts as a self-declaration that tax obligations have been fulfilled.

What Is Form 15CB?

Form 15CB is a certificate issued by a Chartered Accountant (CA).

It is required when:

• The remittance is taxable in India

• The payment exceeds ₹5,00,000 in a financial year (in most cases)

• Banks require CA certification for high-value remittances

The CA certifies:

• Applicable DTAA (Double Taxation Avoidance Agreement)

• Taxability of the payment

• TDS rate and deduction

• Nature and purpose of remittance

• Legal compliance under Income Tax & FEMA

When Do You Need 15CA & 15CB?

Examples of exempt remittances:

• Import of goods

• Travel, tuition, and medical expenses

• Business travel

• Postal charges

• Remittances by individual for personal purposes

Four Parts of Form 15CA

Step-by-Step Filing Process for 15CA & 15CB

Step 1: Gather Documents

• Invoice / Agreement

• Purpose of remittance

• Bank details

• Vendor details

• DTAA documents (if applicable)

Step 2: CA Issues Form 15CB

The Chartered Accountant reviews documents and certifies:

• Taxability

• DTAA benefit availability

• TDS applicability

Step 3: Login to Income Tax Portal

Navigate to e-File → Income Tax Forms → File 15CA.

Step 4: Select the Correct 15CA Part

Choose Part A/B/C/D based on remittance type.

Step 5: Upload or Link 15CB

If required, link the CA-certified Form 15CB.

Step 6: Submit Form 15CA

Submit using DSC or EVC.

Step 7: Provide Acknowledgement to Bank

Bank processes the foreign remittance only after receiving the:

• 15CA acknowledgement

• 15CB certificate (if applicable)

Common Mistakes to Avoid

• Incorrect purpose code

• Wrong tax rate or DTAA selection

• Not uploading 15CB when required

• Remitting funds before 15CA filing

• Using old vendor or bank information

• Not verifying residency status of recipient

Incorrect reporting may lead to penalties under Section 271-I.

Best Practices for Foreign Remittance Compliance

• Consult a CA before any foreign payment

• Verify residential status and DTAA benefits

• Maintain all supporting documents and invoices

• File 15CA accurately and keep acknowledgement copies

• Follow RBI + FEMA guidelines for each remittance category

Conclusion

Forms 15CA and 15CB play a crucial role in ensuring that foreign remittances comply with Indian tax and FEMA laws. Proper reporting, CA certification, and documentation prevent penalties and ensure smooth bank processing.

Bisways Consulting Group assists individuals and businesses with foreign remittance documentation, 15CA/15CB preparation, and TDS compliance — ensuring a seamless and compliant remittance process.