Foreign Remittances: When Do You Need Form 15CA and 15CB?

Every outward remittance raises the same two questions: is it chargeable to tax in India, and what paperwork does the bank need before it will process the payment?

The basic structure

• Form 15CA — the remitter's declaration, filed on the income-tax portal.
• Form 15CB — a Chartered Accountant's certificate on taxability and the applicable rate, required for taxable remittances above the prescribed threshold.

Common pitfalls

• Treating the specified-list exemptions as broader than they are
• Ignoring DTAA relief that could lower the withholding rate — or claiming it without a Tax Residency Certificate
• The gross-up trap: when the Indian payer bears the withholding tax, Section 195A requires grossing up — the tax is computed on the grossed-up amount, not the invoice value.

A 15CB is a certificate, not a formality. It is issued only after the CA has actually examined the contract, the invoice and the treaty position.

Send us the agreement and invoice early — the determination is usually quick, but it must be done before the remittance, not after.