Not every foreign payment from India requires Form 15CA or 15CB. Under Rule 37BB of the Income Tax Rules, 28 specific categories of foreign remittances are fully exempt from Form 15CA/15CB filing. If your payment falls in this list, you can remit funds abroad without any chartered accountant certificate or income-tax department approval. This guide is for Indian businesses, importers, students, and individuals sending money outside India who want to avoid unnecessary compliance paperwork.

• 28 exempt categories listed in the First Schedule to Rule 37BB
• Exemptions cover trade payments, personal remittances, and sovereign transactions
• Non-exempt payments above ₹5 lakh require both Form 15CA and Form 15CB (CA certificate)

What is Form 15CA?

Form 15CA is a self-declaration by the Indian remitter (payer) confirming that tax has been deducted or that the remittance is not taxable in India. It is submitted on the income-tax e-filing portal before the remittance is made. Banks and authorised dealers require it before processing cross-border wire transfers, unless the payment falls under an exempt category.

Form 15CB is a separate certificate issued by a Chartered Accountant that verifies the nature of the remittance, applicable tax rate, DTAA benefit (if any), and TDS deducted. It is mandatory only for remittances exceeding ₹5 lakh in a financial year that are not exempt under Rule 37BB.

What is Rule 37BB?

Rule 37BB of the Income Tax Rules, 1962, governs the procedure for furnishing information under Section 195(6) of the Income Tax Act (now referred to under the Direct Tax Code 2025 framework for FY 2026-27). It prescribes the format, circumstances, and exemptions for Form 15CA/15CB. The Rule includes a Schedule listing 28 payment purposes that are not chargeable to tax in India and are therefore exempt from the filing requirement.

Complete Form 15CA Exemption List (Rule 37BB)

The following 28 categories of foreign remittances do not require Form 15CA or Form 15CB. Payments under these heads can be remitted directly after informing your bank of the purpose code.

#	Nature of Payment	Typical Examples
1	Indian investment abroad – in equity capital (shares)	FDI outflows, overseas subsidiary equity
2	Indian investment abroad – in debt securities	Foreign bonds, debentures
3	Indian investment abroad – in branches and wholly owned subsidiaries	Branch capital remittance
4	Indian investment abroad – in subsidiaries and associates	Overseas joint venture funding
5	Indian investment abroad – in real estate	Overseas property purchase by Indian entity
6	Loans extended to non-residents	External commercial borrowings repayments outward
7	Payment for operating expenses of Indian shipping companies operating abroad	Port charges, crew wages abroad
8	Operating expenses of Indian airlines abroad	Foreign airport fees, fuel abroad
9	Booking of passages abroad (other than freight and passage)	Air/ship tickets purchased for travel abroad
10	Remittance by non-residents towards family maintenance and savings	NRI sending money to family abroad
11	Remittance towards personal gifts and donations	Overseas charitable donation, personal gifts
12	Remittance towards donations to religious and charitable institutions abroad	Temple or NGO donations overseas
13	Remittance towards grants and donations to foreign governments and institutions	Government aid, grants
14	Contributions or donations by the Central Government or State Government to international institutions	India's WHO or UNDP contributions
15	Remittances for payment of membership subscriptions or registration fees to international bodies	ICAO, WTO membership fees
16	Remittance for purchase of raw material abroad	Import of commodities for manufacturing
17	Remittance for purchase of goods from abroad (imports)	Import trade payments
18	Remittance by an Indian company for reimbursement of pre-incorporation expenses	Legal/registration costs paid before company setup
19	Advance payment against imports	Advance remittance to foreign supplier
20	Payment for imports by diplomatic missions	Embassy procurement payments
21	Short-term credit to overseas offices of Indian companies	Working capital to branch office abroad
22	Refunds or rebates or reduction in invoice value on account of exports	Export price adjustments to foreign buyer
23	Payments by residents for international travel (non-taxable)	International air tickets, hotel, travel
24	Education-related remittances by students	Tuition fees, hostel fees abroad
25	Remittance for medical treatment abroad	Hospital fees, specialist consultation overseas
26	Maintenance of close relatives abroad	Spouse/children living abroad maintenance
27	Payment of fees or salary or any other dues to foreign technicians	Expert/consultant fees where TDS already deducted
28	Postal services	Postage, courier services international

Important: Even if a payment is on this exemption list, the bank may still ask for a declaration or purpose code under FEMA. The exemption applies to Form 15CA/15CB only, not to RBI/FEMA compliance.

Which Foreign Payments Do Need Form 15CA?

Payments not covered in the 28-category exempt list above are classified into three parts depending on amount and taxability:

Part	Condition	Forms Required
Part A	Remittance does not exceed ₹5 lakh in a financial year (aggregate)	Form 15CA Part A only (no 15CB)
Part B	Remittance exceeds ₹5 lakh AND an order/certificate has been obtained from the Assessing Officer	Form 15CA Part B + AO certificate
Part C	Remittance exceeds ₹5 lakh AND is chargeable to tax in India, no AO certificate	Form 15CA Part C + Form 15CB (CA certificate)
Part D	Remittance is not chargeable to tax in India (but not on the 28-exempt list)	Form 15CA Part D only

Common Payments That Require Form 15CB

The following payment types are frequently questioned by companies and typically require Form 15CB when they exceed ₹5 lakh:

• Royalties and Fees for Technical Services (FTS) paid to a foreign company (e.g., software licensing fees, SaaS subscriptions to foreign vendors). See our guide on TDS on SaaS payments to foreign companies.
• Interest payments on foreign loans or ECBs to overseas lenders
• Commission or brokerage paid to foreign agents
• Dividends paid to foreign shareholders
• Management fees or consultancy charges to foreign entities
• Cloud/hosting payments to foreign cloud providers (AWS, Google Cloud, Azure) above the threshold

For royalty and FTS payments, you may pay tax at 20% under Section 115A (plus applicable surcharge and cess) without filing an ITR in India, unless the foreign company claims DTAA benefit. If DTAA benefit is claimed, the foreign company must furnish a Tax Residency Certificate (TRC), Form 10F, a No-PE Declaration, and file an ITR in India. More details in our article on No-PE Declaration requirements.

How Does DTAA Affect Form 15CA Requirements?

When a foreign entity claims a reduced tax rate under a Double Taxation Avoidance Agreement (DTAA) with India, the remitter must reflect the DTAA benefit in Form 15CA/15CB. The CA issuing Form 15CB must verify the DTAA eligibility before certifying. The following documents are mandatory for DTAA benefit:

• Tax Residency Certificate (TRC) from the foreign country's tax authority
• Form 10F (self-declaration by the foreign company)
• No Permanent Establishment (No-PE) Declaration
• PAN card of the foreign company in India
• Income Tax login (e-filing portal registration in India)
• DSC (Digital Signature Certificate) of the authorised foreign signatory for ITR filing

Key DTAA rates for royalty/FTS payments (where DTAA benefit is available) include:

DTAA Treaty	Rate (Royalty/FTS)	Section 115A Rate (Default)
India - UAE	10%	20% + surcharge + cess
India - Sweden	10%	20% + surcharge + cess
India - Switzerland	10%	20% + surcharge + cess
India - Russia	10%	20% + surcharge + cess
India - China	10%	20% + surcharge + cess
India - South Korea	10%	20% + surcharge + cess
India - Denmark	20%	20% + surcharge + cess
India - Italy	20%	20% + surcharge + cess

For details on specific country DTAA requirements, refer to our in-depth guides: UAE-India DTAA, China-India DTAA, and Sweden-India DTAA.

How to File Form 15CA Online (2026)

As of July 2026, Form 15CA must be filed on the Income Tax e-Filing portal (incometax.gov.in) before the remittance is initiated. Here is the step-by-step process:

1. Check if your payment is on the exempt list under Rule 37BB. If yes, no filing needed.
2. Determine the remittance amount for the financial year to identify the applicable Part (A, B, C, or D).
3. Engage a CA for Form 15CB (required for Part C - taxable remittances above ₹5 lakh). The CA will verify the nature of payment, applicable tax rate, and DTAA benefit.
4. Log in to the income-tax e-filing portal and navigate to e-File > Income Tax Forms > Form 15CA.
5. Fill in the details including PAN of remitter and recipient, amount, purpose, country of remittance, and DTAA details if applicable.
6. Upload 15CB details (acknowledgment number from the CA's Form 15CB filing) if filing Part C.
7. Submit and download the acknowledgment (Form 15CA with a unique acknowledgment number).
8. Submit acknowledgment to your bank along with the Form A2 (FEMA declaration).

Penalties for Non-Compliance

Failure to file Form 15CA or furnish Form 15CB when required can attract penalties under the Income Tax law. The remitter (Indian payer) bears the primary responsibility. Consequences include:

• Penalty for not furnishing information under Section 195(6): up to ₹1 lakh
• TDS default interest under Section 201 if tax was not deducted correctly
• Prosecution provisions may apply in cases of willful evasion
• Banks may reject the remittance request entirely without valid Form 15CA

Do import payments need Form 15CA?

No. Payments for import of goods into India (purchase of goods from abroad) fall under category 17 of the Rule 37BB exemption list and do not require Form 15CA or 15CB. Advance payments against imports (category 19) are also exempt. Simply provide your bank with the relevant purpose code under FEMA.

Does remittance for education abroad need Form 15CA?

No. Remittances for overseas education, including tuition fees and hostel expenses, fall under category 24 of the Rule 37BB exemption list and are fully exempt from Form 15CA/15CB filing requirements. However, LRS (Liberalised Remittance Scheme) limits of USD 250,000 per financial year apply.

Is Form 15CA needed for small foreign payments below ₹5 lakh?

For taxable remittances not on the exempt list but below ₹5 lakh in a financial year, only Form 15CA Part A is required. No Form 15CB (CA certificate) is needed. For remittances above ₹5 lakh that are taxable in India, both Form 15CA Part C and Form 15CB are mandatory.

Who is responsible for filing Form 15CA?

The Indian remitter (the person or company sending money abroad) is responsible for filing Form 15CA. The obligation to deduct TDS and file Form 15CA lies with the payer in India, not the foreign recipient. Non-compliance exposes the Indian entity to penalties and TDS interest.

How Taxocity Helps with Foreign Remittance Compliance

Taxocity, with over three decades of experience in Indian taxation and compliance, provides end-to-end support for Form 15CA/15CB filings. Our team of real human CA experts handles everything from determining whether your payment is exempt, to issuing Form 15CB certificates, to managing the e-filing on your behalf, ensuring 100% compliance.

Whether you are an Indian company paying SaaS subscription fees to a US provider, remitting royalties to a UK parent, or sending management charges to a Singapore holding company, our experts evaluate the correct tax position, verify DTAA applicability, and ensure your remittance goes through without bank rejections. Trusted by 5,000+ clients with a 4.8/5 rating, Taxocity has guided businesses from first remittance to ongoing cross-border compliance.

Key Takeaways

1. Rule 37BB lists 28 categories of foreign payments exempt from Form 15CA/15CB - mostly trade imports, personal remittances, travel, and education.
2. Payments not on the exempt list require Form 15CA; amounts above ₹5 lakh and taxable in India also need Form 15CB from a CA.
3. Default TDS rate on royalties/FTS is 20% under Section 115A (plus surcharge and cess); DTAA rates may be lower but require TRC, Form 10F, and No-PE Declaration.
4. Import payments, education fees, medical treatment abroad, and travel are all exempt from Form 15CA requirements.
5. The Indian remitter bears responsibility for filing and faces penalties up to ₹1 lakh for non-compliance.
6. DTAA benefit claims require the foreign company to file an ITR in India and obtain a PAN and DSC of the authorised foreign signatory.

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Disclaimer: The information provided in this article is for general informational purposes only and does not constitute tax, legal, or financial advice. Tax laws and regulations are subject to change. Please consult a qualified tax advisor or chartered accountant before making any decisions regarding foreign remittances, TDS deductions, or Form 15CA/15CB filings specific to your situation.