INCOME TAX SOLUTIONS

15CA & 15CB: Foreign Remittance

Sending money outside India—whether to pay a foreign software vendor, remit royalties, or send funds to an NRI family member—is heavily monitored by the RBI and the Income Tax Department. Before your bank approves the wire transfer, they will ask for Form 15CA and, in most cases, a CA-certified Form 15CB.

At The Online Tax, we make international payments "Sahi" and stress-free. Our practicing Chartered Accountants analyze your cross-border transaction, determine the correct TDS (Tax Deducted at Source) under both the Indian Income Tax Act and the relevant DTAA (Double Taxation Avoidance Agreement), and instantly issue your 15CB certificate. We ensure your global transactions are processed without banking delays or tax compliance notices.

Get Your 15CB Certificate

15CA and 15CB Filing for Foreign Remittance

UNDERSTANDING THE FORMS

When Do You Need 15CA & 15CB?

Any person making a remittance to a Non-Resident Indian (NRI) or a Foreign Company must submit Form 15CA online. However, the requirement for the CA-certified 15CB depends on the amount and nature of the transaction.

Common Remittances Requiring Filing:

Vendor Payments: Paying for international software subscriptions, server hosting, or foreign freelancers.
Royalties & Fees: Paying Royalties or Fees for Technical Services (FTS) to a foreign entity.
Dividends & Interest: Repatriating business profits, dividends, or interest to foreign investors or NRI accounts.
NRI Property Sale: Remitting the capital gains out of India after an NRI sells real estate located in India.
Family Maintenance: Certain non-exempt personal remittances exceeding the standard RBI thresholds.

How the Forms Are Divided:

Form 15CB: This is the official certificate issued by our Chartered Accountant verifying that the correct TDS has been deducted on the payment.
Form 15CA (Part A): Filed when the remittance is chargeable to tax, and the total amount during the financial year does not exceed ₹5 Lakhs. (No 15CB required).
Form 15CA (Part B): Filed when an order/certificate for lower or nil TDS deduction has been obtained from the Assessing Officer.
Form 15CA (Part C): Filed when the remittance is chargeable to tax and exceeds ₹5 Lakhs. (15CB is mandatory here).
Form 15CA (Part D): Filed when the remittance is strictly not chargeable to tax under the Income Tax Act.

DOCUMENTATION

Checklist for Fast Approval

To determine the exact TDS rate and issue your 15CB certificate without delay, our CAs require specific documentation from both you (the remitter) and the foreign party (the deductee).

Commercial Invoice

The detailed invoice or contract agreement from the foreign vendor detailing the nature of the transaction.

TRC (Tax Residency Certificate)

Crucial for claiming lower tax rates under the DTAA (Double Taxation Avoidance Agreement) between India and the vendor's country.

Form 10F & No PE Declaration

A self-declaration from the foreign party stating they do not have a "Permanent Establishment" (office/presence) in India.

Bank Remittance Details

The name of your remitting bank, BSR code, and the specific foreign currency amount to be wired.

CLARIFICATIONS

Frequently Asked Questions

Common queries regarding foreign payments and DTAA benefits.

Generally, no. Under the Specified Exempt List issued by the RBI, remittances for the advance payment of import of goods or settlement of import invoices do not require Form 15CA or 15CB. However, payments for software, services, royalties, or capital transfers do require it.

If your total foreign remittances during the entire financial year amount to less than ₹5 Lakhs, you only need to self-declare by filing Form 15CA (Part A). A Chartered Accountant's certificate (Form 15CB) is not legally mandatory for amounts under this threshold.

If you pay a foreign company, the Indian Income Tax Act might mandate a 20% TDS deduction. However, if India has a Double Taxation Avoidance Agreement (DTAA) with that country, the tax rate might drop to 10% or even 0%. To legally apply this lower DTAA rate and save you money, the foreign vendor must provide a valid TRC from their home country's government.

Once you provide all the necessary documents (Invoice, TRC, Form 10F, No PE Declaration), our Chartered Accountants typically verify the transaction, assign the correct tax code, generate the UDIN, and issue the signed Form 15CB within 24 to 48 hours.

No. By law, Form 15CB can only be issued and digitally signed by a Practicing Chartered Accountant holding a valid Certificate of Practice (CoP) from the ICAI. They must also generate a unique UDIN for every certificate to prevent fraud. The Online Tax partners strictly with certified practicing CAs.

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