Almost every time money is sent from India to a non-resident — a foreign supplier, an overseas consultant, a parent company abroad, or an NRI’s own account — the bank will ask for two forms: Form 15CA and, in many cases, Form 15CB. Form 15CB is the certificate of a Chartered Accountant confirming the nature of the payment, whether it is taxable in India, the correct rate of tax, and the effect of any Double Taxation Avoidance Agreement (DTAA). Without it, the authorised dealer bank will usually not process the remittance.
This guide, written from the perspective of a practicing Chartered Accountant, explains Certificates in Form 15CB end to end — what the form is, who can issue it, the governing law (Section 195 and Rule 37BB of the Income-tax Act, read with FEMA and the relevant DTAA), when it is and is not required, the documents needed, the issuing process, a specimen format, verification, common rejection reasons, validity, professional responsibilities, penalties, and 70+ frequently asked questions. It is meant for NRIs, business owners, startups, company directors, importers of services, bankers and tax consultants who deal with foreign remittances.
What Is Form 15CB?
Form 15CB is a certificate issued by a Chartered Accountant under the Income-tax Act, certifying the details of a payment made to a non-resident, the taxability of that payment in India, the rate and amount of tax to be deducted at source (TDS), and the relevant provisions — including any benefit available under a Double Taxation Avoidance Agreement (DTAA). It is filed online on the income-tax e-filing portal and is the basis for Part C of Form 15CA, the remitter’s declaration.
In simple terms, Form 15CA is what the person remitting the money declares; Form 15CB is what the Chartered Accountant certifies. The bank (authorised dealer) relies on these forms to allow the foreign remittance and to confirm that Indian tax has been correctly handled.
For example, an Indian company paying USD 50,000 to a foreign consultant for professional services will usually need a CA to issue Form 15CB certifying whether the fee is taxable as “fees for technical services,” the applicable rate under the Act or the DTAA, and the TDS to be deducted before remittance.
Purpose of Form 15CB
- Certifying taxability — confirming whether the payment to the non-resident is chargeable to tax in India.
- Determining TDS — fixing the correct rate and amount of tax to be deducted under Section 195.
- Applying the DTAA — giving effect to any beneficial treaty rate and the relevant article.
- Enabling the remittance — providing the bank the assurance it needs to process the transfer.
- Protecting revenue — ensuring tax on cross-border payments is not lost.
- Creating a record — generating a verifiable, UDIN-backed document for the department.
Why Is Form 15CB Required?
Payments to non-residents can escape Indian tax if not checked at source. Form 15CB is required because:
- Section 195 requires tax to be deducted on any sum chargeable to tax paid to a non-resident.
- Section 195(6) and Rule 37BB require information on such remittances to be furnished in Forms 15CA/15CB.
- It ensures the correct rate — Act vs DTAA — is applied before money leaves India.
- Banks (authorised dealers) are obliged to obtain these forms before processing many remittances.
- It prevents under-deduction of tax and the resulting interest, penalty and disallowance.
- It provides independent professional certification rather than relying only on the remitter.
Who Can Issue Form 15CB?
Form 15CB can be issued only by a Chartered Accountant. This is one of the clearest single-profession certifications in Indian tax law.
Chartered Accountant (CA)
Only a practising CA holding a valid Certificate of Practice from ICAI, who is an “accountant” within the meaning of the Explanation to Section 288(2) of the Income-tax Act, can issue Form 15CB. The CA must register on the income-tax e-filing portal, be assigned the form by the remitter, file it online, and quote a UDIN. The auditor of the remitter can also issue it, but statutory-auditor status is not a separate requirement.
Statutory Auditor
The statutory auditor (necessarily a CA) may issue Form 15CB, but any practising CA can do so. There is no rule that only the auditor may certify the remittance.
Cost Accountant (CMA)
A Cost & Management Accountant cannot issue Form 15CB, because the Income-tax Act recognises only a Chartered Accountant as the “accountant” for this certification.
Company Secretary (CS)
A Company Secretary cannot issue Form 15CB. The certification of taxability of a foreign remittance is outside the CS’s statutory mandate.
Other Professionals
No other professional — lawyer, tax practitioner or bank official — can issue Form 15CB. The certificate is exclusively a Chartered Accountant’s function.
Legal Provisions and Applicable Laws
Income-tax Act, 1961
- Section 195 — deduction of tax at source on sums chargeable to tax paid to non-residents.
- Section 195(6) — obligation to furnish information on remittances in the prescribed form.
- Rule 37BB of the Income-tax Rules — prescribes Forms 15CA and 15CB and lists exempt remittances.
- Sections 90 / 90A — relief under a DTAA; the more beneficial of the Act or the treaty applies.
- Section 195A — grossing up where tax is borne by the remitter.
- Sections 195(2) / 197 — application for lower or nil deduction.
- Section 206AA — higher TDS where the payee has no PAN (subject to treaty relief conditions).
- Section 271-I — penalty for failure to furnish, or furnishing inaccurate, Form 15CA/15CB.
- Section 271J — penalty on the accountant for an incorrect certificate.
FEMA & RBI Guidelines
Foreign remittances are also “current account” or “capital account” transactions under the Foreign Exchange Management Act, 1999. The remittance must be permissible under FEMA, within the Liberalised Remittance Scheme (LRS) limits for individuals, and accompanied by the correct RBI purpose code. The authorised dealer bank applies both the tax forms and FEMA rules.
Double Taxation Avoidance Agreements (DTAA)
Where India has a tax treaty with the payee’s country, the beneficial rate or exemption can apply, subject to a valid Tax Residency Certificate (TRC), Form 10F, and often a no-permanent-establishment declaration.
GST Law
Import of services from a non-resident can attract GST under reverse charge. While GST is separate from the income-tax certification, the CA often notes it as part of advising on the transaction.
Companies Act & SEBI
For corporate remitters, board authorisations and, for listed companies, disclosure norms may apply to significant foreign payments.
When Is Form 15CB Required?
Form 15CB is required when a remittance to a non-resident is taxable in India and the aggregate of such remittances exceeds ₹5,00,000 in the financial year (Part C of Form 15CA). It is not required for the specified payments listed in Rule 37BB or for non-taxable remittances.
| Situation | Form 15CB Required? |
|---|---|
| Taxable remittance above ₹5,00,000 in the year | Yes (Part C of 15CA + 15CB) |
| Taxable remittance up to ₹5,00,000 in the year | No (Part A of 15CA only) |
| Remittance not chargeable to tax in India | No (Part D of 15CA) |
| Payment covered by an order u/s 195(2)/195(3)/197 | No 15CB (Part B of 15CA) |
| Payment in the Rule 37BB specified list (e.g., certain imports) | No |
| Fees for technical services / royalty to non-resident | Yes (if taxable & above limit) |
| Foreign consultancy / professional fee (taxable) | Yes |
Who Needs Form 15CB?
- Salaried persons — usually only for large personal foreign remittances that are taxable.
- Proprietors — when paying non-resident suppliers or consultants for taxable services.
- Partnership firms & LLPs — for taxable cross-border payments above the limit.
- Companies — for royalties, technical fees, interest, and other taxable remittances abroad.
- Startups — for foreign software, SaaS, marketing or consultancy payments that are taxable.
- Trusts & NGOs — for taxable foreign payments (subject also to FCRA for inbound foreign funds).
- NRIs — when repatriating taxable income, sale proceeds, or other funds from India abroad.
- Importers of services — for taxable fees to overseas service providers.
Bankers (authorised dealers) do not need the form for themselves but require it from the remitter before processing the transfer, and tax consultants prepare these forms for their clients.
Documents Required
- PAN of the remitter and details (including PAN, if any) of the non-resident payee.
- Invoice / agreement / contract describing the nature of the payment.
- Purpose of remittance and the RBI purpose code.
- Amount in foreign currency and INR, with the exchange rate.
- Tax Residency Certificate (TRC) of the payee for DTAA benefit.
- Form 10F of the payee (filed online where required).
- No-permanent-establishment (No-PE) declaration, where relevant.
- Bank details and the authorised dealer’s remittance request (Form A2).
- Any lower / nil deduction certificate under Section 195(2)/197, if obtained.
- Previous 15CA/15CB for related or recurring payments, if any.
Information Required by the Chartered Accountant
- The exact nature of the payment (services, royalty, interest, purchase, reimbursement, etc.).
- The country of residence of the payee and whether a DTAA applies.
- Whether the payee has a permanent establishment or business connection in India.
- The TRC and Form 10F position for claiming treaty benefit.
- Whether tax is borne by the remitter (grossing up under Section 195A).
- The PAN status of the payee (relevant to Section 206AA).
- Any lower/nil deduction order already obtained.
- The GST / reverse-charge position on import of services, where relevant.
- A management representation confirming the facts of the transaction.
Process of Issuing Form 15CB
- Engagement — the remitter engages a CA and shares the transaction details.
- Document collection — invoice/agreement, TRC, Form 10F, No-PE declaration and bank details are obtained.
- Nature & taxability analysis — the CA determines whether the payment is chargeable to tax in India.
- Rate determination — the CA compares the Act rate and the DTAA rate and applies the beneficial one.
- Grossing up / 206AA check — adjustments are made where tax is borne by the payer or PAN is absent.
- Assignment on portal — the remitter assigns Form 15CB to the CA on the e-filing portal.
- Filling & UDIN — the CA completes Form 15CB, generates a UDIN, and submits it with a digital signature.
- Form 15CA Part C — the remitter files Part C of Form 15CA referencing the 15CB acknowledgment.
- Submission to bank — both forms are given to the authorised dealer to process the remittance.
- Record keeping — copies and working papers are retained for assessment and audit.
Sample Format (Illustrative Specimen)
Below is an illustrative specimen of Form 15CB. The actual form must be filed online on the income-tax e-filing portal with a digital signature and UDIN; this is only to show the structure and key contents.
Certificate of an Accountant — Form No. 15CB
[See rule 37BB]
I/We have examined the agreement, invoice and relevant documents in respect of the proposed remittance by [Name of the Remitter] (PAN: [____]) to [Name of the Non-resident Payee], a resident of [Country], and certify the following:
Nature of remittance: [e.g., Fees for technical services]
Amount payable: [Foreign currency] [amount] (₹ [amount] at the rate of [exchange rate])
Taxability under the Income-tax Act: [Taxable / Not taxable]
Relevant DTAA article and country: [Article __, India–[Country] DTAA]
Rate of TDS applied: [__%] (the more beneficial of the Act and the DTAA)
Amount of tax deducted at source: ₹[amount]It is certified that the above information is true and correct, and that tax has been determined in accordance with the provisions of the Income-tax Act read with the applicable Double Taxation Avoidance Agreement.
Place: [City] Date: [DD/MM/YYYY]
For [Firm Name], Chartered Accountants FRN: [____]
[CA Name], Partner/Proprietor Membership No.: [____] UDIN: [____]Note: This is an illustrative specimen for educational purposes only and is not a substitute for the statutory Form 15CB filed electronically on the income-tax portal.
How the CA Verifies the Information
- Reading the agreement/invoice — establishing the true nature of the payment.
- Classifying the income — services, royalty, interest, business income, capital gains, etc.
- Checking taxability — under the Income-tax Act and the source rules.
- Examining the DTAA — identifying the relevant article and the beneficial rate.
- Verifying the TRC and Form 10F — confirming eligibility for treaty benefit.
- Checking PE / No-PE — for business income, confirming there is no taxable presence.
- Applying Section 206AA / 195A — for PAN absence and grossing up.
- Obtaining a representation — a written confirmation of the transaction facts from the remitter.
Common Reasons for Rejection or Problems
- Wrong nature of payment — misclassifying the income leads to an incorrect rate.
- Treaty benefit claimed without TRC / Form 10F — the DTAA rate is then not allowed.
- No PAN of payee — triggering higher TDS under Section 206AA unless conditions are met.
- Mismatch between 15CB and 15CA — amounts, rate or nature not matching.
- Missing UDIN or an invalid digital signature.
- Incorrect exchange rate or amount compared to the bank’s figures.
- Ignoring grossing up where tax is borne by the remitter.
- FEMA purpose-code error, causing the bank to return the request.
Validity Period
Form 15CB is transaction-specific. It is issued for a particular remittance and is valid for that remittance only. There is no fixed “expiry,” but it should be used for the transaction and period it certifies; if the remittance does not go through within a reasonable time, or the amount, rate or facts change, a fresh certificate is needed. For recurring payments, a separate 15CB is generally issued for each remittance (or as the bank requires). Treat each certificate as valid only for the specific payment it covers.
Difference Between Related Forms
| Form | What It Is | Who Prepares It |
|---|---|---|
| Form 15CA | Remitter’s declaration of the remittance and tax | The remitter (payer) |
| Form 15CB | CA’s certificate of taxability and TDS | Chartered Accountant |
| Form 10F | Payee’s information to claim DTAA benefit | The non-resident payee |
| TRC | Tax Residency Certificate of the payee’s country | Foreign tax authority |
| Form 13 / 197 order | Lower / nil TDS certificate from the AO | Income-tax Department |
Form 15CA vs Form 15CB
| Basis | Form 15CA | Form 15CB |
|---|---|---|
| Nature | Self-declaration by the remitter | Certificate by a CA |
| When | For most foreign remittances | When taxable & above ₹5,00,000 |
| Signed by | The payer | A Chartered Accountant (with UDIN) |
Form 15CB vs Lower-Deduction Certificate (197)
| Basis | Form 15CB | Section 197 Certificate |
|---|---|---|
| Issued by | Chartered Accountant | Assessing Officer |
| Effect | Certifies the correct TDS | Permits lower / nil TDS |
Form 15CB vs Form 10F
| Basis | Form 15CB | Form 10F |
|---|---|---|
| Purpose | Certify taxability of the remittance | Provide payee details for DTAA |
| Filed by | CA (for the remitter) | The non-resident payee |
Professional Responsibilities of the Chartered Accountant
- Independence — certify only after genuine examination of the transaction, free of undue pressure.
- Correct classification — determine the true nature of the payment and its taxability.
- Treaty diligence — apply the DTAA only with a valid TRC and Form 10F.
- UDIN compliance — generate and quote a valid UDIN on every Form 15CB.
- Documentation — retain the agreement, TRC, declarations and working papers.
- Confidentiality — protect client information per the ICAI Code of Ethics.
- Truthful reporting — never certify a lower tax than the law requires.
Penalty for Misrepresentation
⚠️ Important: An incorrect Form 15CB has consequences for both the remitter and the certifying Chartered Accountant.
- Section 271-I — penalty of ₹1,00,000 for failure to furnish, or furnishing inaccurate, Form 15CA/15CB.
- Short-deduction consequences — the remitter is treated as an assessee-in-default, with tax, interest under Section 201, and possible disallowance under Section 40(a)(i).
- Section 271J — penalty of ₹10,000 on the accountant for each incorrect certificate.
- ICAI disciplinary action against the CA for professional misconduct.
- Prosecution in serious cases of false certification under the Income-tax Act.
This is why a CA issues Form 15CB only after carefully verifying the nature of the payment and the treaty position — the certificate carries real professional liability.
Frequently Asked Questions
1. What is Form 15CB?
Form 15CB is a certificate issued by a Chartered Accountant certifying the nature of a payment to a non-resident, whether it is taxable in India, the rate and amount of TDS, and the effect of any DTAA. It supports Part C of Form 15CA and is required by banks before processing many foreign remittances.
2. Who can issue Form 15CB?
Only a practising Chartered Accountant holding a valid Certificate of Practice can issue Form 15CB. Cost Accountants, Company Secretaries and other professionals cannot issue it. The CA files it online with a digital signature and a UDIN.
3. Is CA certification mandatory for Form 15CB?
Yes. Form 15CB is by definition a CA’s certificate. It is mandatory when a remittance to a non-resident is taxable in India and the total of such remittances exceeds ₹5,00,000 in the financial year.
4. What is the difference between Form 15CA and 15CB?
Form 15CA is the remitter’s own declaration about the remittance; Form 15CB is the Chartered Accountant’s certificate of taxability and TDS. For taxable remittances above ₹5,00,000, the CA issues 15CB first, and the remitter then files Part C of 15CA referring to it.
5. When is Form 15CB not required?
It is not required when the remittance is not chargeable to tax, when taxable remittances are up to ₹5,00,000 in the year (only Part A of 15CA), when an order under Section 195(2)/195(3)/197 covers it (Part B), or when the payment is in the specified list under Rule 37BB.
6. What is the ₹5,00,000 limit in Form 15CB?
If the total of taxable remittances to non-residents in a financial year exceeds ₹5,00,000, the remitter must file Part C of Form 15CA, which requires a Form 15CB from a CA. Below this limit, only Part A is filed and no 15CB is needed.
7. What is Rule 37BB?
Rule 37BB of the Income-tax Rules prescribes Forms 15CA and 15CB for furnishing information on remittances to non-residents and lists the specified payments for which these forms are not required.
8. What is Section 195?
Section 195 of the Income-tax Act requires tax to be deducted at source on any sum chargeable to tax that is paid to a non-resident. Form 15CB certifies the correct rate and amount of this TDS.
9. How much does Form 15CB cost?
Fees depend on the complexity of the transaction and the treaty analysis involved. A straightforward remittance costs less than one requiring detailed DTAA and PE analysis. ICAI does not fix rates; fees reflect the time, skill and responsibility involved. Agree the fee in advance.
10. Can I get Form 15CB online?
Yes. Form 15CB is filed entirely online on the income-tax e-filing portal. The remitter assigns the form to the CA, who fills it, attaches a UDIN, and submits it with a digital signature. The CA can work with you remotely, but must still verify genuine documents.
11. What is the validity period of Form 15CB?
It is transaction-specific, issued for a particular remittance. There is no fixed expiry, but it should be used promptly for the remittance it certifies. If the amount, rate or facts change, a fresh 15CB is required.
12. Can an NRI obtain Form 15CB?
Yes. NRIs frequently need Form 15CB when repatriating taxable funds from India — such as rental income, sale proceeds of property, or other income — where the remittance is taxable and above the limit. A practising Indian CA issues it after verifying the records.
13. Is Form 15CB needed for repatriation from an NRO account?
Repatriation from an NRO account is a common case where banks ask for Forms 15CA and 15CB, because the funds may include taxable income. The CA certifies the taxability and TDS before the bank allows the transfer, subject to FEMA limits.
14. What is a UDIN and why is it needed on Form 15CB?
UDIN (Unique Document Identification Number) is generated from the ICAI portal for every certificate a CA signs. It lets authorities verify authenticity and prevents forgery. A Form 15CB must carry a valid UDIN.
15. What is a DTAA and how does it affect Form 15CB?
A Double Taxation Avoidance Agreement is a treaty between India and another country that can reduce or exempt tax on a payment. In Form 15CB, the CA applies the more beneficial of the Act rate and the DTAA rate, provided a valid TRC and Form 10F are available.
16. What is a Tax Residency Certificate (TRC)?
A TRC is a certificate issued by the payee’s home-country tax authority confirming their tax residence. It is required to claim DTAA benefit on the remittance and is checked by the CA before applying a treaty rate.
17. What is Form 10F?
Form 10F is a declaration by the non-resident payee giving details not contained in the TRC. It is now filed online and is needed, along with the TRC, to claim treaty benefit on the remittance.
18. What happens if the payee has no PAN?
Without a PAN, Section 206AA can require higher TDS. However, treaty relief may still apply if the payee furnishes the TRC, Form 10F and other prescribed details. The CA assesses this while issuing Form 15CB.
19. What is grossing up under Section 195A?
If the remitter agrees to bear the tax so the payee receives the full amount, the payment must be “grossed up” to include that tax. The CA computes the grossed-up amount and the correct TDS in Form 15CB.
20. Is Form 15CB required for import of goods?
Payments for import of goods are generally in the specified list under Rule 37BB and usually do not require Form 15CB, as they are not chargeable to tax in India. Always confirm the facts, as some payments labelled as imports may include taxable elements.
21. Is Form 15CB needed for foreign education or maintenance under LRS?
Personal remittances under the Liberalised Remittance Scheme that are not chargeable to tax in India generally do not need Form 15CB, though Form 15CA Part D or the specified-list provisions may apply. The bank also applies TCS rules separately.
22. Can a bank reject a remittance despite Form 15CB?
Yes. The authorised dealer can return the request if the FEMA purpose code is wrong, documents are inconsistent, or the remittance is not permissible under FEMA, even when Form 15CB is in order. Tax and FEMA compliance are both needed.
23. What details does Form 15CB contain?
It contains the remitter and payee details, the nature and amount of the remittance, the taxability position, the applicable section and DTAA article, the rate and amount of TDS, and the CA’s certification with UDIN.
24. What is the penalty for a wrong Form 15CB?
Section 271-I provides a penalty of ₹1,00,000 for failure to furnish or for inaccurate Form 15CA/15CB. The CA may also face ₹10,000 per incorrect certificate under Section 271J, ICAI action, and the remitter faces short-deduction consequences.
25. Can Form 15CB be revised or cancelled?
A filed Form 15CB can be withdrawn within the time allowed on the portal if an error is found, and a corrected one issued, with the UDIN regenerated. It is better to verify all facts before filing to avoid revisions.
26. Who files Form 15CA — the CA or the remitter?
The remitter files Form 15CA. When a 15CB is needed, the CA files 15CB first, and the remitter then files Part C of 15CA on the portal using the 15CB acknowledgment number.
27. Is Form 15CB needed for dividend paid to a non-resident?
Dividends to non-residents are taxable in India and subject to TDS under Section 195, so Form 15CB is generally required where the remittance is taxable and above the limit, applying the DTAA rate where available.
28. Does Form 15CB apply to payments to a foreign branch?
It depends on whether the payment is to a non-resident and is chargeable to tax in India. The CA examines the nature of the payment and the residential status before deciding whether 15CB is required.
29. What is a No-PE declaration?
A No-Permanent-Establishment declaration is a statement from the non-resident that it does not have a taxable business presence in India. It supports treating business income as not taxable here under the DTAA, and the CA relies on it cautiously.
30. How long does it take to get Form 15CB?
A simple, well-documented remittance can be certified within a day or two. Complex transactions needing DTAA and PE analysis take longer. Providing the agreement, TRC and Form 10F early speeds it up.
31. Can one Form 15CB cover multiple remittances?
Generally each remittance is certified separately. For recurring identical payments, banks and the CA may handle them with separate 15CBs per remittance to keep the certification accurate.
32. Is Form 15CB required if tax is nil under the DTAA?
If the remittance is chargeable to tax in India but the DTAA reduces the rate to nil, a 15CB is still generally issued to certify that position, supported by the TRC and Form 10F. If the income is not chargeable at all, Part D of 15CA may apply instead.
33. What is the role of the authorised dealer bank?
The authorised dealer (bank) processes the foreign remittance. It obtains Forms 15CA and 15CB, checks the FEMA purpose code and permissibility, and remits the funds after tax and exchange-control requirements are met.
34. Is GST related to Form 15CB?
GST is separate, but import of services from a non-resident can attract GST under reverse charge. The CA may flag this while advising, though Form 15CB itself certifies income-tax, not GST.
35. Can the remitter claim a refund if excess TDS was deducted?
Where excess tax has been deducted and deposited, refund mechanisms exist subject to conditions and CBDT procedures. The correct course is to determine the right rate in Form 15CB to begin with.
36. Does Form 15CB apply to remittances by individuals?
Yes, where an individual makes a taxable remittance to a non-resident above the limit. Many personal remittances under LRS are not taxable and so do not need 15CB, but each case depends on the nature of the payment.
37. What if the nature of payment is uncertain?
The CA must examine the agreement and facts to classify the income correctly. Where it is genuinely uncertain, a conservative rate may be applied, or the matter resolved through an application under Section 195(2).
38. Can a CA refuse to issue Form 15CB?
Yes. If the documents are inadequate, the treaty position is unsupported, or the remitter wants a lower tax than the law allows, the CA must decline rather than issue a wrong certificate.
39. How do banks and the department verify Form 15CB?
By checking the acknowledgment on the income-tax portal, verifying the UDIN on the ICAI portal, and confirming the CA’s membership and firm registration numbers. A genuine 15CB is traceable on these systems.
40. What records should be kept after issuing Form 15CB?
Keep the agreement/invoice, TRC, Form 10F, No-PE declaration, the filed 15CB and 15CA, bank documents and the CA’s working papers, for the period the assessment can be examined.
41. Is Form 15CB accepted by foreign embassies?
Form 15CB is an Indian tax-compliance document for remittances, not a visa or embassy document. For visa or personal financial proof, separate CA certificates such as net-worth or income certificates are used.
42. What is the first step to get Form 15CB?
Engage a Chartered Accountant and share the agreement/invoice, payee country, TRC and Form 10F. The CA determines taxability and the correct rate, then files Form 15CB online with a UDIN so you can complete Form 15CA and remit.
People Also Ask
What is Form 15CA and 15CB in simple words?
Form 15CA is the sender’s declaration about a payment abroad; Form 15CB is a Chartered Accountant’s certificate confirming whether tax applies and how much should be deducted before the money is sent.
Is 15CB mandatory for every foreign payment?
No. It is needed only when the payment to a non-resident is taxable in India and the total such payments cross ₹5,00,000 in the year. Many payments need only Form 15CA or nothing.
Who fills Form 15CB?
A practising Chartered Accountant fills and files Form 15CB online with a digital signature and a UDIN, after the remitter assigns the form on the portal.
What is the limit for 15CB?
Form 15CB is triggered when taxable foreign remittances exceed ₹5,00,000 in a financial year, requiring Part C of Form 15CA.
Is 15CB required for import of goods?
Usually not, because import payments are generally in the specified list under Rule 37BB and are not taxable in India. Confirm the facts of each payment.
Can I file 15CA without 15CB?
Yes, for small or non-taxable remittances you file Part A or Part D of 15CA without a 15CB. A 15CB is needed only for Part C.
What is the TDS rate on foreign remittance?
It depends on the nature of the payment and the DTAA. The CA applies the more beneficial of the Income-tax Act rate and the treaty rate in Form 15CB.
Is a TRC compulsory to claim DTAA benefit?
Yes. A valid Tax Residency Certificate, along with Form 10F, is needed to apply a beneficial treaty rate on the remittance.
What is Form 10F used for?
Form 10F provides additional details of the non-resident payee needed to claim DTAA relief where the TRC does not contain them. It is now filed online.
Can Form 15CB be filed after remittance?
No. It should be obtained before the remittance, as the bank needs it to process the transfer and to ensure correct TDS upfront.
What is Section 195 in simple terms?
It is the rule that says tax must be deducted before paying a non-resident any amount that is taxable in India.
Does 15CB apply to salary paid abroad?
Salary has its own TDS rules under Section 192. Form 15CB applies to other taxable remittances to non-residents; a CA decides based on the facts.
What is the penalty for not filing 15CA/15CB?
Section 271-I provides a penalty of ₹1,00,000 for failure to furnish or for inaccurate Forms 15CA/15CB.
Can an individual file 15CB themselves?
No. Only a Chartered Accountant can issue Form 15CB. The individual files Form 15CA but needs a CA for 15CB.
Is 15CB needed for payment to a foreign freelancer?
If the fee is taxable in India as fees for technical or professional services and crosses the limit, yes. The DTAA and the freelancer’s residence are examined.
What is an authorised dealer bank?
It is a bank authorised by the RBI to deal in foreign exchange and process remittances, which obtains Forms 15CA/15CB before sending money abroad.
Does Form 15CB expire?
It has no fixed expiry but is meant for a specific remittance. If the transaction changes or is delayed significantly, a fresh certificate is advisable.
Is 15CB required for reimbursement of expenses?
Pure reimbursements without a profit element may not be taxable, but this must be examined carefully. The CA decides whether a 15CB is needed.
What is the difference between 15CB and a 197 certificate?
Form 15CB is a CA’s certificate of the correct TDS; a Section 197 certificate is issued by the Assessing Officer permitting lower or nil TDS.
Can 15CB be issued for capital gains on property sale by an NRI?
Yes. When an NRI repatriates sale proceeds with a taxable capital gain, the CA certifies the gain and TDS in Form 15CB, subject to any lower-deduction order.
Is PAN of the foreign party mandatory?
Not always, but its absence can trigger higher TDS under Section 206AA unless treaty relief conditions with TRC and Form 10F are met.
What documents does the CA need for 15CB?
The invoice or agreement, payee and country details, TRC, Form 10F, No-PE declaration where relevant, and bank remittance details.
Can 15CB be issued in a foreign currency?
The certificate records the foreign-currency amount and the INR equivalent at the applicable exchange rate, so both are shown.
Is 15CB required for software or SaaS payments?
It depends on whether the payment is taxable as royalty or fees for technical services under the Act and the DTAA. Many such payments are taxable, requiring 15CB.
What is grossing up in remittances?
When the payer bears the tax so the payee gets the full amount, the payment is increased to include that tax. The CA computes this in Form 15CB.
Who is responsible if TDS is short-deducted?
The remitter is primarily liable as an assessee-in-default, with interest and possible disallowance. A CA who certified wrongly also faces penalty and ICAI action.
Can 15CB be used for multiple banks?
A 15CB certifies a specific remittance. If the same remittance is processed by a particular bank, that bank uses it; a different transaction needs its own certificate.
Is 15CB needed for remittance to own foreign account?
If an NRI or resident remits taxable funds abroad above the limit, yes. Non-taxable personal remittances under LRS generally do not need 15CB.
How is the DTAA rate applied?
The CA checks the relevant treaty article, confirms the TRC and Form 10F, and applies the treaty rate if it is more beneficial than the Act rate.
Where can I verify the current rules for 15CB?
Refer to the income-tax e-filing portal, Rule 37BB and Section 195, the relevant DTAA, and consult a practising CA, as limits, forms and rates are updated periodically.
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Conclusion
Form 15CB is the bridge that lets money move from India to a non-resident while keeping Indian tax intact. It is a Chartered Accountant’s certificate of taxability and TDS, built on a careful reading of the transaction, Section 195, Rule 37BB and the relevant DTAA. Paired with the remitter’s Form 15CA and the bank’s FEMA checks, it ensures cross-border payments are both lawful and efficient.
The practical message is simple: identify early whether your remittance is taxable and above the ₹5,00,000 threshold, gather the agreement, TRC and Form 10F, and let a qualified CA certify the correct rate with a UDIN before you remit. Getting it right avoids short-deduction demands, interest, disallowance and penalties — and keeps your banking relationship smooth.
If you need a Form 15CB for any foreign remittance — a supplier payment, royalty, technical fee, or an NRI repatriation — our team at MicroAdvisor can analyse the taxability, apply the right treaty rate, and issue a UDIN-compliant certificate.
Disclaimer: The issuance of any Form 15CB is entirely subject to the verification of records provided by the remitter and the professional judgment of the Chartered Accountant. MicroAdvisor and the issuing CA do not guarantee acceptance of any certificate by any bank, authorised dealer, or the Income-tax Department, nor any particular tax outcome. This article is for educational purposes only and does not constitute legal, financial, or professional advice. All provisions mentioned — including Section 195, Rule 37BB, the ₹5,00,000 threshold, DTAA rates, and penalty sections — are subject to amendment; readers must verify the current law and the applicable treaty with the relevant authorities or a qualified Chartered Accountant before acting.
Need a Form 15CB for a Foreign Remittance?
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