What is Section 195?
When making payments to a non-resident or a foreign company, you must deduct income tax at the applicable rate before the payment.
15CA-15CB filling
When making or receiving payments from a foreign entity, Indian residents must comply with the legal provisions of the Income Tax Act 1961. Before sending funds abroad, you must file Form 15CA and Form 15CB with the tax authorities. While this process can be complex due to the detailed tax laws and regulations, Vyapaar Registration makes it simple. Our experts handle the entire filing process, ensuring you meet all compliance requirements without any hassle.Make Form 15CA and 15CB filing stress-free with Vyapaar Registration!
Form 15CA
A declaration form submitted online before sending money to a non-resident. It helps the Income Tax Department track foreign remittances and ensures compliance with tax laws.
Form 15CB
A certificate issued by a Chartered Accountant (CA) for payments over ₹5 lakh. It confirms that the payment follows the Income Tax Act and Double Taxation Avoidance Agreement (DTAA) rules.
Why Are These Forms Important?
They ensure proper reporting of payments to non-residents and help in timely tax collection.
When Do You Need Form 15CA and 15CB?
If you're making foreign remittances, India's Income Tax Act 1961 requires you to comply with Form 15CA and Form 15CB rules. Here's when these forms apply:
- 🚀 When Is Form 15CA Required?
1. When sending money to a non-resident or foreign company—taxable or not!
2.Applicable to residents, non-residents, domestic or foreign companies.
3.Needed if the income is earned, received, or deemed to be in India under Section 5 of the Income Tax Act.
- 💼 When Do You Need Form 15CB?
1. Required when the remittance to a non-resident is taxable.
2. Mandatory if the payment is over ₹5,00,000.
3. Needed when there’s no assessment order or certificate from the Assessing Officer (AO).
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Our experts ensure quick, hassle-free compliance so you can focus on growing your business.
🚫When Form 15CA and Form 15CB Are Not Needed?
- 🌏 Indian Investments Abroad
Sending funds for investments outside India.
- 💰 Advance Payment for Imports
Payments made before receiving goods or services from abroad.
- 🌐 Intermediary Trade
Transactions involving third-party trade.
- 🛂 Diplomatic Imports
Goods imported by foreign diplomatic missions in India.
- 💼 Loans to Non-Residents
Lending money to individuals or entities outside India.
- 📦 Small Imports
Imports valued below ₹5 lakh.
- 🏗️ Project Construction
Payments for construction projects, including importing goods to the project site.
- 🚢 Freight Insurance
Covering shipping and logistics insurance costs.
- ✈️ Airline Expenses
Operational costs of Indian Airlines abroad.
- 🧳 Travel Costs
Expenses for BTQ, pilgrimage, medical, business, or education-related travel.
- 🚢 Shipping Operations
Expenses of Indian shipping companies operating overseas.
- 🏢 Office Maintenance
Keeping Indian offices abroad running smoothly.
- 🏛️ Embassy Remittances
Funds sent by foreign embassies in India.
- 👨👩👧 Family Maintenance
Non-residents sending money for family support and savings.
- 🎁 Personal Gifts & Donations
Remitting funds for personal gifts or donations.
- 🕍 Religious & Charitable Donations
Contributions to international religious and charitable institutions.
- 🌍 Government Contributions
Donations to international bodies and foreign governments.
- 🌐 Global Institution Support
Contributions to global organizations.
- 💳 Export Adjustments
Refunds, reductions, or rebates on export invoices.
- 🧾 Tax Payments
Remittances for tax payments or refunds.
Key Details Needed for Filing Form 15CA and 15CB
- 🆔 PAN Details
Remitter’s PAN: Permanent Account Number of the person sending the funds.
Beneficiary’s PAN: PAN of the recipient receiving the remittance.
- 💸 Remittance Amount
Specify the amount being remitted in Indian Rupees (INR).
- 📄 Nature & Purpose of Remittance
Clearly mention the reason for the payment, such as services rendered, royalties, dividends, or any other purpose.
- 📚 Legal References
Include relevant sections of the Income Tax Act and articles of the Double Taxation Avoidance Agreement (DTAA), if applicable.
- 🏦 Bank Information
Provide bank details of both remitter and beneficiary, including:
Bank Name
Branch
Account Number
Easy Steps to File Form 15CA and 15CB
- 🆔 Get a Valid PAN
Ensure both the remitter and the beneficiary have a Permanent Account Number (PAN) issued by the Income Tax Department.
- 🔍 Check Form 15CB Requirement
If the remittance is above ₹5 lakh, a Chartered Accountant (CA) must certify Form 15CB, confirming the remittance is taxable in India and taxes are properly paid.
- 📝 Fill Out Form 15CA
Complete Form 15CA online on the Income Tax Department’s e-filing portal.
Provide details of the remitter, beneficiary, nature of the remittance, and amount.
- 📄 Obtain CA Certification
If Form 15CB is needed, get a CA certification with all the necessary remittance details.
- 📤 Submit Forms Online
Upload the filled and certified Form 15CA and Form 15CB on the e-filing portal.
