Difference Between 15CA and 15CB: What You Should Know

If filing taxes in India feels stressful, you’re definitely not alone—many people find the process confusing.

You may have come across Forms 15CA and 15CB and wondered what sets them apart. These two forms often cause uncertainty, even for experienced taxpayers.

Although they may seem similar at first glance, Forms 15CA and 15CB serve different purposes. Knowing which form to use and when you need it is essential for smooth and compliant tax filing.

So whether you’re familiar with tax procedures or just getting started, understanding the difference between Form 15CA and Form 15CB will help you stay on track with your tax obligations. Let’s break it down!

Certification Difference Between 15CA and 15CB

India has strict compliance rules for any foreign remittance made to non-residents. Certain payments are taxed based on predefined slabs, and Forms 15CA and 15CB play separate roles in this process.

To complete a remittance, Form 15CA must be filed online, while Form 15CB requires certification from a chartered accountant.

Form 15CB helps determine the correct tax deduction under income tax laws and ensures that double taxation is avoided. If the payment is taxable, TDS will be deducted accordingly.

This form includes crucial details about the remittance—information about both the remitter and the recipient, the nature of the payment (like salary, commission, or royalty) as per the agreement, the Tax Residency Certificate, and the remitter’s bank details when applicable under the Double Taxation Avoidance Agreement (DTAA).

What is Form 15CA?

Form 15CA is a declaration submitted by the person making the payment (the remitter). Its main purpose is to collect details about payments made to non-residents that may be taxable in India.

It also works within an advanced information-processing system designed to help the Income Tax Department monitor foreign remittances and track where the funds originate. This setup allows the department to accurately assess tax liability on such transactions.

Note: As per the updated Rule 37BB, many banks and payment processors are increasingly insisting on Form 15CA before processing any foreign remittance.

What is Form 15CB?

Form 15CB is required under Section 195(6) of the Income Tax Act. It acts as an alternative form of tax clearance for outward remittances, replacing the need for approval from the Assessing Officer. Obtaining this certificate from a Chartered Accountant is necessary to ensure compliance and avoid complications.

Form 15CA/15CB Applicability – When Are They Required?

Understanding when each form applies is essential for meeting Indian tax rules related to payments to non-residents.

1. When Do You Need Form 15CA?

• Threshold Limit: Form 15CA must be filed if total payments to a non-resident exceed ₹5 lakhs in a financial year.
• Nature of Payment: It applies to payments such as salary, commission, royalty, and fees for professional services provided by non-residents.
• Taxable Remittances: If the transaction is taxable in India, Form 15CA is mandatory to declare the remittance and comply with income tax provisions.

2. When is Form 15CB Required?

• Mandatory Attachment: Form 15CB is required for every remittance exceeding ₹5 lakhs. It is a Chartered Accountant–issued certificate confirming that tax has been deducted at the correct rate.
• Details Provided: The form includes crucial particulars such as the nature of the remittance, information about the remitter and recipient, and the Tax Residency Certificate.
• TDS Verification: It ensures that the remittance follows the applicable DTAA provisions, when relevant, and verifies proper tax deduction.

How to File Form 15CA – Step-by-Step Process

Step 1: Access the Form
Log in to your Income Tax Department e-filing portal account. Go to the ‘Forms’ section and locate Form 15CA.

Step 2: Select the Correct Section
Choose the applicable part of Form 15CA based on the payment amount and the requirement of Form 15CB:

• Section A: Remittances up to ₹5 lakhs.
• Section B: Remittances exceeding ₹5 lakhs that do not need Form 15CB.
• Section C: Remittances over ₹5 lakhs that do require Form 15CB.
• Section D: Payments exempt from tax under the Income Tax Act.

Step 3: Enter Required Details
Provide all necessary information, such as the nature of the remittance, the recipient’s tax-related details, and any other requested data.

Step 4: Submit the Form
Review your entries, ensure all information is accurate, and then submit Form 15CA online.

 

Procedure for Filling Out Form 15CB

Step 1: Engage a Chartered Accountant
Form 15CB must be certified by a Chartered Accountant, so your first step is to hire a CA who will guide you through the process.

Step 2: Gather Essential Documents
Provide your CA with all necessary documents, including:

• Details of the remittance
• Tax Residency Certificate
• Agreement or document explaining the nature of the payment

Step 3: Form Preparation
Your Chartered Accountant will complete the form by entering:

• Information about both the remitter and the recipient
• The specific nature of the payment
• Applicable TDS rates

Step 4: Verify and Sign
Review the filled form carefully to ensure everything is accurate. Once confirmed, the CA will sign and stamp it, and the form becomes ready for submission.

Final Steps

Both Form 15CA and Form 15CB must be submitted via the Income Tax Department’s e-filing portal. Keep a physical copy of Form 15CB, as banks or financial institutions processing the remittance may request it.

Difference Between Form 15CA and Form 15CB – Submission Process

The Income Tax Department has introduced a refined consent and submission mechanism for Forms 15CA and 15CB, taking into account feedback from various businesses and experts across the country. This upgraded system streamlines how these forms are prepared, assigned, filed, and verified, making the entire submission cycle more efficient.

Parts of Form 15CA

• Section A – Part A:
  Used when the payment—or the total payments—to a Non-Resident Indian (NRI) during a financial year is up to ₹5 lakhs. The remitter completes this section.
• Section B – Part B:
  Applicable when an individual payment exceeds ₹5 lakhs.
• Section C – Part C:
  Required when the cumulative remittances during the year go beyond ₹5 lakhs. This section must be filled after securing a Tax Determination Certificate or Form 15CB issued by a Chartered Accountant, as per subsection (2) of section 288.
• Section D – Part D:
  Used when the payment is exempt from tax under the Income Tax Act or does not fall under Rule 37BB.

Important Note

Form 15CB is compulsory only when the total remittance exceeds ₹5 lakhs in a financial year, as specified under the Income Tax Act, 1961.

Why Are Forms 15CA and 15CB Required?

Although the core difference between Form 15CA and Form 15CB lies in who initiates them, both forms serve the same underlying purpose—ensuring proper tax collection during foreign remittances.

To strengthen oversight of cross-border payments, the Income Tax Department introduced electronic filing for these certificates.
For compliance, anyone sending money to a non-resident must submit Form 15CA (a self-declaration) along with Form 15CB (a CA-certified document), wherever applicable.

Comparison of Forms 15CA and 15CB

Aspect	Form 15CA	Form 15CB
Nature	Declaration form	Certificate issued by a Chartered Accountant
Purpose	Collects information on taxable payments made to non-residents	Determines applicable tax and avoids double taxation
Initiator	Remitter (person making the payment)	Chartered Accountant
Applicability	Required for all payments to non-residents	Required only when remittances exceed ₹5 lakh in a financial year
Submission Requirement	Filed online for every remittance	Must be prepared and submitted along with Form 15CA when applicable
Parts	Section A: ≤ ₹5 lakhSection B: > ₹5 lakhSection C: With Tax Determination CertificateSection D: Tax-exempt payments	Single CA certification covering all details
Information Included	Details of remitter and remittee, type of payment, TRC if applicable	Complete remittance information, tax residency, and tax implications
Tax Deduction	Shows if the remittance is taxable	Confirms whether TDS has been appropriately deducted
Usage Context	Used to initiate foreign remittance declaration	Used to support tax compliance for higher-value remittances

Key Takeaways

• Form 15CA is filled by the remitter to declare foreign payment details.
• Form 15CB is issued by a Chartered Accountant to verify tax compliance, especially for higher-value transactions.
• Knowing when and how to use these forms helps ensure smooth foreign remittances and prevents penalties.

Read – How to File E-Form 15CA and 15CB?