Who Needs to File Form 15CA?
According to Rule 37BB and Section 195 of the Income Tax Act, any person or entity in India making a payment to a non-resident (individual or company) must file Form 15CA before remitting that amount, even if the remittance is exempt or non-taxable TAXVIC+15Income Tax Department+15Reddit+15.
✅ In simpler terms: If you're sending money outside India and you're the payer, you must file 15CA.
🧾 When Is Form 15CB Needed?
Form 15CB is required only if:
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The remittance exceeds ₹5 lakh during the financial year, and
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The payment is chargeable to tax in India, and
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No tax exemption certificate from AO under Section 195(2)/(3)/197 is obtained Reddit+15Income Tax Department+15Income Tax Department+15.
In these cases, a Chartered Accountant must certify the tax computations in Form 15CB before you can file Form 15CA (Part C) Kotak Life+4HDFC Life+4www.bajajfinserv.in+4.
🗂️ Which Parts of Form 15CA to File?
| Scenario | Who Files 15CA | CA Certificate Needed? | CA Form 15CB |
|---|---|---|---|
| Remittance ≤ ₹5 lakh (taxable or not) | Part A | ❌ | No |
| Remittance > ₹5 lakh & non-taxable | Part D | ❌ | No |
| Remittance > ₹5 lakh & taxable, and an AO certificate exists | Part B | ❌ | No |
| Remittance > ₹5 lakh & taxable, no AO certificate | Part C | ✅ Materially required | Yes |
— Source: Official RBI / IT Department clarifications, Reddit+15Income Tax Department+15Policybazaar+15www.bajajfinserv.in+2Policybazaar+2DBS Bank+2
🎯 Why Filing These Forms Matters
1. Grant Remittance Legality & Smooth Processing
Many banks refuse international transfers without 15CA/CB, even for small or exempt payments. Having the correct form ensures your transfer is approved promptly Reddit+7Reddit+7Reddit+7.
2. Avoid Penalties up to ₹1 Lakh
If mandatory forms are not filed, even for non-taxable payments, you could face a penalty under Section 271I up to ₹1 lakh per transaction.n Sorting Tax+8HDFC Life+8ClearTax+8.
3. Maintain Tax Transparency
Form 15CB provides a CA verification of tax deductions and applicable DTAA provisions—helping you support your remittance trail during audits, Sorting Tax+15Income Tax Department+15TAXVIC+15.
4. Build Credibility & Facilitate Due Diligence
Accurate and timely filings enhance your corporate compliance credibility with banks, investors, and tax authorities, especially when remitting overseas frequently.
✅ Summary: Who Should File and Why
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Resident Business / Freelancer / Individual → Must file Form 15CA whenever making foreign remittance.
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Use Form 15B only if receiving AO certificate; otherwise, use Part A/C depending on the amount and taxability.
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Form 15CB is required only when remittance exceeds ₹5 lakh and is taxable without an AO certificate.
This ensures compliance, avoids penalties, and keeps your international transactions legally sound and banker-friendly.