15CA - 15CB Filing: What Entrepreneurs Must Know

Introduction

As cross-border transactions become increasingly common in the modern business landscape, understanding the regulatory framework around international remittances is vital, especially for entrepreneurs and business owners.

In India, the 15CA and 15CB forms are part of the compliance process required by the Income Tax Department when sending money abroad. Filing these forms correctly ensures legal transparency and helps avoid penalties or delays in your foreign payments.

This guide breaks down everything entrepreneurs must know about 15CA and 15CB filing, including when and how to file, the differences between them, and how to stay compliant.

What Are Forms 15CA and 15CB?

Form 15CA: Declaration of Remitter

Form 15CA is a declaration form that must be submitted online by the remitter (the person or business sending money abroad). It provides details about:

• Nature and amount of the remittance

• Details of the remitter and recipient

• Purpose of the payment

• Tax liability in India (if any)

This form serves as a tool for the Income Tax Department to track foreign exchange transactions and assess tax compliance.

Form 15CB: Certification by A Chartered Accountant

Form 15CB is a certificate issued by a Chartered Accountant (CA). It confirms that:

• The remittance is in line with Indian tax laws

• Tax, if applicable, has been deducted at source

• Proper due diligence has been carried out

Note: Form 15CB is not always required, but it is mandatory for certain categories of remittances above a specified limit or where taxability is uncertain.

Why Entrepreneurs Should Care

For startups, MSMEs, and large businesses alike, cross-border transactions may include:

• Payments to foreign vendors or freelancers

• Import of goods or services

• Investment in foreign subsidiaries

• Royalty or licensing payments

• Travel or marketing expenses abroad

Non-compliance with 15CA/15CB filing can result in:

• Withholding of funds by banks

• Penalties from tax authorities

• Reputational damage and operational delays

When Is 15CA & 15CB Filing Required?

Form 15CA is divided into four parts:

When is Form 15CB Required?

Form 15CB is required only when:

• Remittance exceeds ₹5 lakh in a financial year and

• The remittance is taxable in India

In such cases, Form 15CB must be filed before Form 15CA (Part C).

Step-by-Step Filing Process

✅ Step 1: Determine Taxability

• Consult with your CA to evaluate whether the transaction is taxable under Indian law or DTAA (Double Tax Avoidance Agreement).

✅ Step 2: Obtain Chartered Accountant Certificate (Form 15CB)

• Your CA will analyze:

  • Nature of payment

  • Applicable tax rates

  • DTAA implications

  • Dedication of TDS (if applicable)

✅ Step 3: File Form 15CA Online

• Visit the Income Tax e-filing portal

• Navigate to “e-File > Income Tax Forms > File Income Tax Forms”

• Select Form 15CA, fill in the details, and submit with your Digital Signature Certificate (DSC) (if applicable)

✅ Step 4: Submit to Authorized Dealer/Bank

• Provide both Form 15CA and Form 15CB (if applicable) to your bank or authorized dealer

• The bank will process the remittance after verifying all documents

Documents Required

• PAN of remitter

• PAN of the recipient (if applicable)

• Invoice or agreement for the foreign payment

• Bank details and SWIFT code

• Tax residency certificate (for DTAA)

• Chartered Accountant’s DSC (for Form 15CB)

Common Mistakes to Avoid

❌ Filing Form 15CA without proper tax analysis
❌ Ignoring the need for Form 15CB when required
❌ Providing incorrect details of the remitter/recipient
❌ Submitting documents late to the bank
❌ Failing to comply with TDS obligations

Penalties for Non-Compliance

Under Section 271-I of the Income Tax Act, failure to submit Form 15CA or 15CB may attract a penalty of ₹1,00,000 per default.

Also, banks may refuse to process remittances without valid forms, leading to business disruptions.

Tips for Entrepreneurs

• 💡 Start early: Don’t wait until the last minute to gather documents or consult a CA

• 💡 Automate compliance: Use accounting tools that help track remittance thresholds

• 💡 Stay informed: Keep up with rule changes via Income Tax notifications

• 💡 Maintain records: Preserve all filings and CA certificates for audit purposes

Conclusion

For entrepreneurs and business owners, understanding 15CA and 15CB filing is critical to ensuring smooth international transactions and regulatory compliance. Whether you're paying overseas consultants or importing raw materials, these filings validate that your foreign remittances are legal, taxed appropriately, and transparent.

By collaborating with a qualified Chartered Accountant, staying updated with income tax rules, and maintaining proper documentation, you’ll protect your business from legal hassles and keep your global payments on track.