What are Form 15CA and 15CB? A Complete Guide
TL;DR - Summary
- What is Form 15CA? - Form 15CA is a self-declaration form submitted to the Income Tax Department before making a foreign remittance to a non-resident or foreign company. It tracks cross-border transfers and ensures that the correct tax has been deducted at source.
- What is Form 15CB? - Form 15CB is a compliance certificate issued by a practicing Chartered Accountant (CA) to certify the taxability of a foreign transfer. It is required only when the transaction is taxable and the aggregate transfer exceeds five lakh rupees in a financial year.
- Who needs Form 15CA and Form 15CB? - Any resident making a foreign payment to a non-resident files Form 15CA. Form 15CB is additionally required only for taxable remittances exceeding five lakh rupees in a fiscal year.
- What is changing in the transition from Form 15CA/15CB to Form 145/146? - The new framework mandates the recipient's Tax Identification Number (TIN), transitions to 65 precise transaction sub-codes, captures the bank's ITDREIN for system matching, and automatically pre-fills Part C when a CA submits Form 146.
- What are the penalties for not filing Form 15CA or Form 15CB? - Non-filing, late filing, or submitting inaccurate data carries a flat penalty of one lakh rupees per instance under legacy Section 271-I or new Section 462. CAs who certify incorrect details independently face a one lakh rupee penalty under Section 271J.
What is Form 15CA?
Form 15CA is a self-declaration that any individual or entity must file with the Income Tax Department in India before they remit money to a non-resident or a foreign company. Form 15A is an official notice by the remitter that they are aware of the tax obligations for the transaction. Rule 37BB of the Income Tax Rules governs Form 15CA, and it is filed through the Income Tax e-filing portal.
The purpose of Form 15CA is to track foreign outflows and verify that the remitter has deducted the correct amount of tax. If you are an Indian exporter or freelancer receiving money, your foreign client is the one filing an equivalent form in their country. However, your client may ask you for documents like your PAN or a tax residency certificate to complete their filing.
Download Form 15CA here
⚠️ WATCH OUT
Under the new Income Tax Act 2025, Form 15CA is being renamed Form 145. If your CA or bank references "Form 145," they mean the same compliance requirement.
What is Form 15CB?
Form 15CB is a certificate issued by a practicing Chartered Accountant (CA) who confirms that the foreign remittance has been taxed appropriately. The CA examines the nature of the payment and the provisions of any Double Taxation Avoidance Agreement (DTAA) to determine the correct TDS rate. This certificate is like an independent audit of the transaction and is prepared before the funds are sent abroad.
Form 15CB is mandatory when the remittance is taxable in India and the total value exceeds ₹5 lakh in a financial year. If the payment is below this threshold or is not taxable, Form 15CB is not needed. The CA must file Form 15CB on the tax portal before the remitter uploads Part C of Form 15CA.
Download Form 15CB here.
⚠️ WATCH OUT
Under the new Income Tax Act 2025, Form 15CB is being renamed Form 146. If your CA or the foreign client's bank uses this new name, it refers to the same document.
Form 145/146 vs Form 15CA/15CB: What All is Changing?
Form 145/146 has replaced Form 15CA/15CB. While the core requirement to declare transfers remains, there are changes to how cross-border payments are reported and audited.
Mandating Tax Identification Numbers (TIN): You must provide the Tax Identification Number (TIN) of the foreign recipient. You can no longer leave this field blank, even if you are not claiming DTAA benefits.
Introducing Granular Nature Codes: The new form uses a strict dropdown menu with 65 precise transaction sub-codes. You can no longer use vague descriptions for the remittance; every transfer must map exactly to a predefined category.
Integrating Bank and Tax Networks: Form 145 captures the Authorized Dealer (AD) Bank’s Income Tax Department Reporting Entity Identification (ITDREIN). This unique ID links your tax filing directly to the bank’s reporting system, allowing the tax department to flag mismatches immediately.
Automating Data via Form 146 Pre-Fills: Part C of Form 145 is now auto-filled by the system once your CA files Form 146. The portal pulls data directly using the Acknowledgement Receipt Number (ARN), which reduces manual entry errors.
Structuring Data for AI Scrutiny: The fields in Form 145 and 146 feed directly into the Income Tax Department's backend ITBA portal. Automated algorithms perform immediate risk analysis on all outward remittances.
Who Needs Form 15CA and Form 15CB?
Any resident in India making a payment to a non-resident or a foreign company must file Form 15CA. The requirement for Form 15CB depends on the nature of the payment and the total amount sent during the financial year.
Form 15CA is divided into four parts based on the transaction situation:
- Part A: Use this part if the taxable remittance is ₹5 lakh or less for the year. No CA certificate is required.
- Part B: Use this part if the remittance exceeds ₹5 lakhs and you have an order from an Assessing Officer under Section 195(2), 195(3), or 197.
- Part C: Use this part if the remittance exceeds ₹5 lakhs and no Assessing Officer order exists. Here, a CA-issued Form 15CB is mandatory.
- Part D: Use this part if the remittance is not taxable in India.
Who needs Form 15CB?
- You need Form 15CB only when the payment is taxable and exceeds the ₹5 lakh aggregate threshold in a financial year.
- You must get the certificate from the CA before you complete Part C of Form 15CA on the e-filing portal.
Note: Certain personal transactions, such as medical treatment, education abroad may have separate RBI-exempt thresholds that do not require these forms.
When Are Form 15CA and 15CB Required?
Form 15CA and 15CB are required when a resident in India sends money to a non-resident and the payment is chargeable to tax in India. The following table summarizes the requirements for each form.
| Basis | When Form 15CA is Required | When Form 15CB is Required |
|---|---|---|
| Purpose | Self-declaration form filled by individuals and entities sharing foreign remittance details with the Income Tax Department | Certificate issued by a CA certifying the taxability and compliance of the foreign remittance |
| Applicability | When a resident or an entity in India remits money to a non-resident or a foreign company | When the remittance amount is taxable and exceeds ₹5 lakh in a financial year |
| Who files/issues it | Filed by the person making the foreign remittance | Issued by a practising chartered accountant |
| CA certification needed? | Not always required | Mandatory |
| Tax verification | Provides details of remittances and applicable tax information | Certifies the nature of remittance, taxability, and correctness of TDS |
| Regulatory basis | Required under Rule 37BB of the Income Tax Rules | Required where CA certification is needed to validate taxable remittance |
| Exemptions | Not required for remittances covered under Rule 37BB exemptions | Not required where remittance is non-taxable or falls outside prescribed thresholds |
When You Don't Need to File Form 15CA or 15CB
Here are some common scenarios where you don’t need to file Form 15CA or Form 15CB:
- If the remittance is not taxable in India or if the payment is made to another Indian company.
- Form 15CA is not required when the remittance falls under the RBI-exempted categories
- If the total aggregate remittance in a financial year is under ₹5 lakh, Form 15CB is unnecessary.
- If you hold a valid lower-tax deduction certificate from an Assessing Officer, you only need to file Part B of Form 15CA.
For Indian IT services exporters and freelancers, specific Rule 37BB exemptions often apply. Here are the most relevant categories:
- Operating expenses (Code S0306): Applies to software companies paying for cloud servers or digital tools.
- Business travel for client meetings (Code S0301): Applies to freelancers paying for international job platforms or ads.
- Legal/Professional services (Code S1006): Applies to firms hiring foreign consultants.
- Funding and maintaining foreign offices (Code S1011): IT agencies and SaaS startups with physical offices abroad can pay for maintaining these offices without filing Form 15CA and Form 15CB
- Client refunds (Code S0305): A software company can apply this exemption in case of a dispute with a customer resulting in a refund
💡 QUICK INSIGHT
If you are an Indian IT exporter or freelancer making payments to foreign vendors, subcontractors, or software subscriptions, your transaction may fall under a Rule 37BB exemption. For non-taxable specified remittances, your bank may not require Form 15CA or 15CB at all. Knowing these exemptions in advance helps you navigate outward remittance compliance confidently.
Form 15CA vs Form 15CB: Similarities & Differences
Form 15CA and Form 15CB function as two parts of the same compliance chain for international payments. Form 15CA is the remitter’s own declaration; Form 15CB is a CA’s independent verification. Both forms are filed through the Income Tax e-filing portal and are governed by Rule 37BB.
Similarities between Form 15CA and Form 15CB
- Both forms are linked to the same remittance transactions and refer to the same remitter, remittee, and payment details
- The responsibility to file the form is on the remitter. Failure to do so will result in penalties
Differences between Form 15CA and Form 15CB
- The remitter must always file Form 15CA, but they cannot self-certify in place of Form 15CB. A Chartered Accountant (CA) always issues Form 15CB
- 15CA applies to all payment sizes across its four parts, whereas Form 15CB is only triggered for taxable payments over ₹5 lakh
- If Part C of Form 15CA is required, one cannot submit it without a valid Form 15CB acknowledgment number.
Form 15CA and Form 15CB Format Explained
The Form 15CA and Form 15CB formats depend on the value and tax status of the money being sent. Form 15CA is divided into four distinct parts to cover different remittance scenarios.
- Part A: This part applies when the payment is taxable and the total amount for the financial year does not exceed ₹5 lakh. It requires basic details of the sender, the recipient, the amount, and the purpose code.
- Part B: Part B applies when taxable payments are over ₹5 lakhs and the remitter has already obtained a tax clearance or lower deduction order from an Assessing Officer. Form 15CB is not required here because the official order already confirms the tax implications.
- Part C: This part applies to taxable payments exceeding ₹5 lakh where no Assessing Officer's order exists. The remitter must provide the CA's details and the Form 15CB acknowledgment number to file this section.
- Part D: This part applies when the payment is not taxable under the Income Tax Act. The remitter provides a verification stating the payment is exempt, and no CA certificate is needed.
How to File Form 15CA Online: Step-By-Step Process
You must file Form 15CA online through the Income Tax e-filing portal. Complete this filing before the bank processes your foreign transfer:
- Log in to the Income Tax e-filing portal. Navigate to the e-File menu, choose Income Tax Forms, and click on File Income Tax Forms.
Form 15CA File Income Tax Returns- Find Form 15CA under the Others (Source of Income not relevant) tab or use the search bar
Form 15CA - Select the correct part (A, B, or D) based on whether the payment is taxable and if it exceeds the ₹5 lakh limit.
e-filing Form 15CA- Enter the required details for the remitter, the foreign recipient, and the remittance amount. If you are filing Part C, enter the acknowledgment number from the Form 15CB filed by your CA.
- Review all the information on the preview screen and click Proceed to e-Verify.
Form 15CA- Complete the verification using an Electronic Verification Code (EVC) via your bank account or a Digital Signature Certificate (DSC).
Form 15CAHow to File Form 15CB Online: Process involving CA Certificate
A Chartered Accountant must file Form 15CB online through the Income Tax portal. Here are the steps to follow:
- Add your CA on the portal: Log in to your e-Filing account, go to Authorised Partners, and select My Chartered Accountant. Add your CA by entering their membership number and assign Form 15CB to them.
CA Certificate- Provide documents to the CA: Send your CA the invoice, bank details, purpose of remittance, and recipient's tax details. If you are claiming DTAA benefits, provide a Tax Residency Certificate (TRC) from the recipient.
- CA files the form: The CA logs in with their credentials, enters the transaction and tax details, and submits the form using their Digital Signature Certificate (DSC).
- Remitter files Form 15CA Part C: Once the CA submission is successful, you will receive an acknowledgment number. Use this number to file Part C of Form 15CA.
What Documents Are Required to File Forms 15CA and 15CB?
The documents required to file Form 15CA and Form 15CB include a document list to be shared by the sender, receiver, and other transaction documents.
Remitter (Sender) Documents
- PAN card and address details.
- Contact information, including email and phone numbers.
- Bank details such as account number, branch name, and BSR code.
- Digital Signature Certificate (DSC) or EVC credentials.
Remittee (Receiver) Documents
- Full name, address, and country of residence.
- Tax Residency Certificate (TRC) if claiming DTAA relief.
- Form 10F, signed by the non-resident recipient.
- A No Permanent Establishment (PE) declaration confirming that they do not have a business setup in India.
Remittance & Transaction Documents
- Invoices or contracts showing the exact purpose and value of the payment.
- TDS challans or tax payment proofs if tax has been deducted.
- Form 15CB Acknowledgement Number (mandatory for Part C).
- Assessing Officer Certificate under Section 197 if a lower tax rate was approved
What Are the Penalties for Not Filing Form 15CA or 15CB?
Failure to file Form 15CA or Form 15CB results in a flat penalty of ₹1,00,000 per instance. Under the Income-tax Act, 1961, this was levied under Section 271-I. In the new Income-tax Act 2025, the same penalty is covered under Section 462.
1. When does the penalty apply?
Total non-filing: If you make a foreign transfer without submitting the forms to the tax department
Inaccurate information: You submit the form, but it contains wrong information, like incorrect tax rates, or falsified Double Taxation Avoidance Agreement (DTAA)
Delayed filing: You file the documents after the bank has already processed the transaction
2. Immediate operational consequences
Immediate transaction rejection: Banks will automatically reject international transfers if the Form 145/15CA acknowledgment number is missing.
Automated AI risk flags: If the Income Tax Department’s ITBA backend portal finds a missing form while cross-referencing banking data, it will automatically trigger compliance notices
Professional liability: CAs who certify incorrect details in Form 15CB also face professional penalties of ₹1,00,000 under Section 271J
3. How to lawfully avoid the penalty?
Check Rule 220 exemptions: By checking the Rule 220 exemptions, you can verify if your foreign remittance falls under the specified exempt category lists (e.g., LRS individual remittances up to certain limits or direct goods imports)
Utilize the 7-day withdrawal window: The latest update in the tax laws, allow you a 7-day withdrawal period if you spot an error in Form 145 right after submitting it
How Does Skydo Help Businesses Receive International Payments with Compliance?
We talked about outward remittances and the importance of Form 15CA and Form 15CB in this blog. But as a freelancer, exporter, or a business owner with foreign clients, your day-to-day focus is on inward remittances.
Compliance plays a key role here as well. After your clients pay you, you’re supposed to maintain a proper paper trail to prove that you received foreign income in India and for filing taxes online. Getting these documents from your bank takes a lot of time and costs money.
Skydo is a quick and cost-efficient alternative to banks.
Skydo auto-generates a Foreign Inward Remittance Certificate (FIRC) for every inbound payment you receive from abroad. An FIRC is like Form 15CA for inward remittances. All payment records on Skydo are PAN-linked, allowing your CA to use them directly for tax filing and eBRC generation.
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What is the new name for Form 15CA and 15CB under the Income Tax Act 2025?
Form 15CA has been renamed to Form 145 and Form 15CB has been renamed to Form 146 under the Income Tax Act 2025. If your CA or bank uses these new names, they refer to the same foreign remittance compliance requirements.
Does an Indian freelancer or exporter need to file Form 15CA themselves?
What is the threshold limit for Form 15CA and 15CB applicability?
In which cases is Form 15CB not required even when 15CA is?
Can Form 15CA be filed without Form 15CB?
What happens if my foreign client's bank does not file Form 15CA before sending payment?
Where can Form 15CA and 15CB be downloaded or filed?
What is the difference between FIRC and Form 15CA — do they serve the same purpose?
