Form 15CA and 15CB: A Decision Map for Every Foreign Remittance

Every outward remittance from India hits the same checkpoint at the bank: which part of Form 15CA applies, and is a 15CB certificate needed? Getting this wrong stalls payments for days. Here is the decision map we use.

What the two forms are

Form 15CA is the remitter's online declaration on the income-tax portal about the nature and taxability of the payment. Form 15CB is a certificate issued by a chartered accountant confirming the taxability analysis and the withholding applied — required only for certain remittances. (Where a 15CB is needed, we coordinate its issuance through independent chartered accountants.)

The decision sequence

1. Is the remittance in the exempt list? A specified list of payments (notably many personal and trade remittances under the relevant rules) requires no 15CA at all. Check the current exemption list first — banks sometimes ask for forms the law doesn't.
2. Is the payment chargeable to tax in India? This is the real question behind everything. Import of goods, most personal remittances under LRS, and payments with no Indian-source character are typically not chargeable — those go under the simpler parts of 15CA. Royalties, fees for technical services, interest and similar income streams usually are chargeable, and pull in withholding under Section 195.
3. Not chargeable → Part D of 15CA (declaration of non-taxability).
4. Chargeable, within the aggregate threshold for the year (a monetary limit set by the rules — verify the current figure) → Part A.
5. Chargeable, above the threshold, covered by an AO order/certificate (e.g. under 195(2)/195(3)/197) → Part B.
6. Chargeable, above the threshold, no order → Part C — and this is where Form 15CB is mandatory, obtained before filing the 15CA.

The treaty layer

Where the recipient claims relief under a Double Taxation Avoidance Agreement — a lower rate on interest or royalties, or no Indian tax absent a PE — the baseline documentation is the recipient's Tax Residency Certificate plus Form 10F (filed electronically), and beneficial-ownership comfort where relevant. No TRC, no treaty rate: withhold at the domestic rate instead.

What the bank will ask for

• Filed 15CA acknowledgement (and 15CB where applicable)
• Invoice/agreement underlying the payment
• A2 form and purpose code — make sure the purpose code matches the tax characterisation; mismatches trigger queries
• TRC + 10F where a treaty rate was applied

Common failure modes

1. Filing Part D for payments that are actually chargeable — the portal accepts it; the assessment doesn't.
2. Grossing-up ignored where the contract says "net of taxes" — the withholding base changes.
3. Forgetting that multiple small remittances to the same person aggregate toward the annual threshold.
4. Treating the 15CB as a formality — it is a taxability opinion with the issuing professional's name on it, and it needs the same analysis quality as any tax position.

Educational content only, not professional advice. Thresholds, exemption lists and portal procedures under Rule 37BB and Section 195 change by notification — verify the current position before remitting. Last reviewed: August 2026.