Try to wire money out of India and your bank will ask for two things before it moves: a Form 15CA, and usually a Form 15CB signed by a Chartered Accountant.
Most people meet Form 15CB at the counter, mid-transaction, when the remittance is already urgent. It goes better if you know in advance whether you actually need one.
At a glance
- What it is
- A CA’s certificate on the taxability of a payment to a non-resident
- Provision
- Section 195(6), read with Rule 37BB
- Who signs
- A Chartered Accountant in practice
- Pairs with
- Form 15CA, filed by the remitter
- When needed
- Taxable remittances above ₹5 lakh in a financial year
- Not needed
- Specified exempt payments, and small remittances
- Under the 2025 Act
- Form 146; section 195 becomes section 509
What Form 15CB certifies
Section 195 requires tax to be deducted on payments to a non-resident that are chargeable to tax in India. Section 195(6) adds a reporting layer: the remitter must furnish prescribed information about the payment.
Form 15CB is the professional input into that. In it the CA states the nature of the remittance, whether it is chargeable to tax in India, the section relied on, the rate of tax deducted, and — where a tax treaty is applied — the article invoked and the basis for applying it.
It is an opinion, not a clearance. Form 15CB does not bind the Department and does not settle the taxability of the payment. It records a professional judgement made on stated facts. If the facts were wrong, the certificate does not protect the remitter.
When you actually need one
This is where most confusion sits. Form 15CB is not required for every foreign payment.
| Situation | Form 15CA | Form 15CB |
|---|---|---|
| Remittance not chargeable to tax in India | Part D (or nil) | Not required |
| Taxable remittance, aggregate up to ₹5 lakh in the financial year | Part A | Not required |
| Taxable remittance above ₹5 lakh | Part C | Required |
| Above ₹5 lakh, with an order or certificate from the Assessing Officer under section 195(2), 195(3) or 197 | Part B | Not required |
| Payment in the specified exempt list under Rule 37BB | Not required | Not required |
Rule 37BB carries a list of payments — including many personal remittances, imports, and certain government transactions — for which no reporting is needed at all. Banks do not always apply that list correctly, and asking for a 15CB on an exempt payment is a common source of unnecessary cost and delay.
The questions that decide the certificate
The form is short. The work behind it is not.
- Is the income chargeable in India? Business income without a permanent establishment usually is not; royalties, fees for technical services and interest usually are.
- Does a treaty reduce the rate? If so, which article, and does the recipient qualify for benefits.
- Is there a Tax Residency Certificate? Treaty benefit generally requires a TRC from the recipient’s country, together with Form 10F and a no-permanent-establishment declaration where relevant.
- Has the recipient a PAN? Without one, section 206AA can push the rate to 20% unless the alternative conditions are satisfied.
- Is the payment grossed up? Where the remitter bears the tax, section 195A requires grossing up.
No TRC, no treaty rate. The single most frequent hold-up is a recipient who has not supplied a current Tax Residency Certificate. Without it, the CA cannot certify a reduced treaty rate, and the payment is taxed at domestic rates. Ask the recipient for the TRC and Form 10F before the invoice is due, not on the day of remittance.
How the filing works
- The remitter gathers the invoice, agreement, TRC, Form 10F and the no-PE declaration.
- The CA reviews the facts and determines chargeability and rate.
- The CA files Form 15CB on the e-filing portal with a digital signature, quoting the UDIN.
- The remitter files Form 15CA Part C, referencing the 15CB acknowledgement number.
- The bank is given both, and processes the remittance.
The order matters. Form 15CA Part C cannot be completed without the 15CB acknowledgement number, so the CA files first. Attempting them in the other order is the usual cause of a same-day scramble.
UDIN on Form 15CB
Form 15CB is expressly a certificate, so it sits in the Certificates category on the ICAI portal, where UDIN has been mandatory since 1 February 2019. ICAI’s own FAQ lists certificates in Form 15CB as an example of the category.
Sixty calendar days from upload. Form 15CB may be uploaded without a UDIN, but the number must be updated within 60 calendar days. If it is not, the CBDT treats the uploaded form as invalid with all due consequences of law — even after the remitter has accepted it. Since the bank relies on the 15CB to release funds, an invalidated certificate is an awkward thing to discover after the money has gone.
Revocation closes at 48 hours, and a separate UDIN is needed for each certificate — one number cannot cover several 15CBs issued on the same day, however similar the remittances. See our guide to UDIN generation.
Form 15CB under the Income-tax Act, 2025
| Item | 1961 Act | 2025 Act |
|---|---|---|
| Accountant’s certificate for payments to a non-resident | Form 15CB | Form 146 |
| Information furnished by the remitter | Form 15CA | Form 145 |
| TDS on payments to non-residents | Section 195, 195A | Section 509 |
The form mapping is from the Income Tax Department’s own Form Mapping Guide, and the section mapping from ICAI’s tabular comparison of the two Acts. Note that tax audit reporting on remittances now cross-refers to Part D of Form 145 rather than the old Form 15CA.
Where it goes wrong
- Getting a 15CB for an exempt payment that Rule 37BB never required.
- Certifying a treaty rate without a valid TRC.
- Ignoring section 206AA where the recipient has no PAN.
- Failing to gross up where the remitter bears the tax.
- Filing 15CA before 15CB, which cannot work for Part C.
- Reusing one UDIN across several remittances.
- Treating the certificate as clearance and stopping the analysis there.
Frequently asked questions
Is Form 15CB required for every foreign remittance?
No. It is required where the remittance is chargeable to tax in India and exceeds ₹5 lakh in aggregate during the financial year. Exempt payments listed in Rule 37BB need no reporting at all.
What is the ₹5 lakh limit measured on?
The aggregate of taxable remittances during the financial year, not each individual payment.
Who files Form 15CA and who files Form 15CB?
The remitter files Form 15CA; the Chartered Accountant files Form 15CB. The 15CB must be filed first, because its acknowledgement number is needed for 15CA Part C.
Can we claim a treaty rate without a Tax Residency Certificate?
In practice, no. A current TRC, generally with Form 10F and a no-permanent-establishment declaration, is what allows the CA to certify a reduced rate.
What if the recipient has no PAN?
Section 206AA can require a higher rate, commonly 20%, unless the prescribed alternative conditions and documents are satisfied.
Does Form 15CB mean the Department accepts the position?
No. It is a professional opinion on stated facts, not a clearance, and does not prevent the position being examined later.
Is UDIN required on Form 15CB?
Yes, in the Certificates category. It must be updated within 60 calendar days if the form is uploaded without one.
Can one UDIN cover several 15CB certificates?
No. A separate UDIN is required for each certificate, even for similar remittances issued the same day.
Can a Cost Accountant or Company Secretary sign Form 15CB?
No. It must be a Chartered Accountant in practice.
What replaces Form 15CB under the Income-tax Act, 2025?
Form 146. Form 15CA becomes Form 145, and section 195 becomes section 509.
Do we need 15CB if we have an order under section 197?
No. Where a certificate or order under section 195(2), 195(3) or 197 has been obtained, the remitter files Form 15CA Part B instead.
Is Form 15CB needed for imports?
Generally not — most import payments fall within the specified list in Rule 37BB for which no reporting is required.
In short
Form 15CB is the most frequently issued certificate in an Indian CA’s practice, and the most frequently issued unnecessarily. Two questions settle almost every case: is the payment chargeable in India at all, and does the recipient have the documents to support a treaty rate. Sort both before the remittance is urgent, and the certificate itself takes very little time.
Micro Advisor issues Form 15CB certificates and advises on withholding tax for payments to non-residents.
References
- Income Tax Department — Form Mapping Guide, 1961 Act to 2025 Act
- Income Tax Department — Income tax forms
Disclaimer. General information, not professional advice. Chargeability, treaty eligibility and rates depend on the facts of each remittance and on the documents produced by the recipient. Rule 37BB and the specified list are amended from time to time; verify the current position before relying on this.