Under Section 195 of the Income-tax Act, 1961 and Rule 37BB of the Income-tax Rules, any person responsible for remitting funds outside India to a non-resident or foreign entity must submit information in Form 15CA electronically. Where taxable remittances exceed ₹5,00,000 during the financial year, a statutory certificate in Form 15CB issued and signed by a practicing Chartered Accountant with a valid Unique Document Identification Number (UDIN) is mandatory prior to uploading Form 15CA Part C.
Key Statutory Takeaways
- Form 15CA is an electronic undertaking submitted by the remitter on the income tax portal.
- Form 15CB is an independent statutory certificate issued by a Chartered Accountant verifying taxability, applicable tax rates, and DTAA relief.
- Remittances exempt from Form 15CB include payments listed in the 33-item RBI Specified Remittances List (e.g. advance imports, personal travel under LRS).
- Form 15CB requires mandatory UDIN generation by the certifying Chartered Accountant to prevent fraudulent certificates.
- Penalty for non-filing or inaccurate filing of Form 15CA/15CB is ₹1,00,000 under Section 271-I.
Cross-border outward remittances from India to overseas vendors, holding companies, or family members require strict documentation under the Foreign Exchange Management Act (FEMA) and Income-tax Act. Our International Tax Desk provides rapid Form 15CB certifications and TRACES portal clearance.
1. Statutory Framework: Rule 37BB & Section 195
Section 195(6) mandates that any person making a payment to a non-resident must furnish the prescribed information in the manner directed by Rule 37BB. The Authorized Dealer (AD) Bank will refuse to initiate outward telegraphic wire transfers (SWIFT) without verified Form 15CA and 15CB acknowledgments.
Claiming Lower Withholding Tax under DTAA Treaties? →
Read our comprehensive guide on obtaining Tax Residency Certificates (TRC) and filing electronic Form 10F on the e-filing portal.
2. The Four Parts of Form 15CA (Part A, B, C, D)
| Form 15CA Part | Applicability Criteria | Requirement of Form 15CB |
|---|---|---|
| Part A | Remittance is taxable and aggregate does not exceed ₹5,00,000 in FY | NO Form 15CB needed |
| Part B | Certificate obtained from AO under Section 195(2), 195(3), or 197 | NO Form 15CB needed (Order attached) |
| Part C | Remittance is taxable and aggregate exceeds ₹5,00,000 in FY | YES - Form 15CB CA Certificate MANDATORY |
| Part D | Remittance is NOT chargeable to tax under Indian Income-tax Act | NO Form 15CB needed (Exempt list) |
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Our chartered accountants evaluate your vendor invoice, verify DTAA withholding rates, and issue UDIN-verified Form 15CB within 24 hours.
Request Form 15CB CertificationFrequently Asked Questions
Is Form 15CB required for personal remittances under LRS for education?
No. Remittances for overseas education, medical treatment, or gifts falling under the 33 specified exemption codes of Rule 37BB do not require Form 15CB, provided they are not chargeable to tax in India.
What is the penalty for failure to submit Form 15CA and 15CB?
Under Section 271-I of the Income-tax Act, failure to furnish information or furnishing inaccurate information attracts a flat statutory penalty of ₹1,00,000 per default.
Can Form 15CA be withdrawn or amended after submission?
Yes. Form 15CA can be electronically withdrawn on the e-filing portal within 7 days from the date of submission if the bank wire transfer has not yet been processed.
This publication provides general educational information and analysis. It does not constitute formal tax or legal counsel. For specific case evaluation, consultation with an authorized tax professional is recommended.
