15CA-15CB Certificates Assistance: Mandatory Compliance for
International Payments
Ensure proper compliance while remitting funds abroad. Get professional
help with Form 15CA and 15CB filing.
Overview
When an Indian resident makes a payment to a non-resident or overseas company, compliance
with the Income Tax Act, 1961 is essential. Forms 15CA and 15CB are required to ensure taxes
are deducted appropriately and reported before any funds are transferred internationally.
Proper filing helps avoid penalties and legal hurdles.
Legal Foundation – Section 195 of the Income Tax Act
Section 195 mandates TDS on payments made to non-residents, where the payment is taxable in
India. The remitter must also report such remittances by submitting:
- Form 15CA: Declaration by the remitter with transaction and tax
details.
- Form 15CB: Chartered Accountant’s certification validating tax
deduction and applicable laws.
Purpose and Importance
- Form 15CA confirms the remittance details and tax liability.
- Form 15CB ensures compliance with the tax laws and DTAA (if applicable).
Together, they enhance transparency in cross-border fund transfers and prevent tax evasion.
When are these Forms Required?
- Form 15CA: Applicable for taxable remittances and when total amount
exceeds ₹5,00,000 in a financial year.
- Form 15CB: Needed when the amount exceeds ₹5,00,000, is taxable, and no
tax determination certificate from the AO is available.
Exemptions
The forms are not mandatory in the following cases:
- Transactions listed under Rule 37BB exemption list
- Non-taxable remittances
- Remittances below ₹5,00,000 annually
- Educational, travel, or medical remittances within prescribed limits
- Personal transfers, gifts, donations, and similar payments
Exempt Transaction Examples
- Advance import payments
- Overseas investments
- Diplomatic mission transactions
- Foreign travel, tuition, medical expenses
- Charitable donations abroad
- Tax refunds/remittances
Form 15CA Structure
- Part A: Taxable remittances up to ₹5,00,000
- Part B: Remittances above ₹5,00,000 with AO certificate
- Part C: Remittances above ₹5,00,000 with CA certification (15CB)
- Part D: Remittances not chargeable to tax
Form 15CB – What it Contains
- Details of sender and foreign recipient
- Purpose of payment
- Applicable tax rules and DTAA clauses
- Confirmation of tax deducted and paid
Information Required for Filing
- PAN Details: Of both remitter and recipient
- Amount: With currency conversion
- Purpose: Payment type (services, royalties, etc.)
- Tax Applicability: TDS rate, section, DTAA if applicable
- Bank Details: Of both sender and receiver
- CA Certification: With membership number and issue date
Filing Steps
- Validate PAN details
- Assess if Form 15CB is necessary
- Get CA certification if required
- Submit Form 15CA online via income tax e-filing portal
- Download and keep acknowledgment
Penalties for Non-Compliance
Omitting or wrongly submitting these forms can lead to penalties up to ₹10,000 per default.
Proper documentation and timely filing are vital.
Professional Support by Hiva Professionals
Handling cross-border transactions can be complex. At Hiva Professionals, our CAs and
consultants simplify this process for you with end-to-end filing and compliance services.
Our services ensure smooth remittance and help you stay 100% compliant with all regulations.
