These two forms cause more confusion than any other part of an outward remittance, largely because most people are told they need both, and most people do not. The rule is narrower than the folklore. Here is where the lines actually fall.
What each form is
Form 15CA is your declaration, filed online on the income tax portal, that you have considered whether the payment is taxable in India and have dealt with any tax due. Form 15CB is a chartered accountant's certificate confirming that view — the rate applied, the treaty relied on, the tax deducted.
The distinction that matters: 15CB exists to support 15CA in the cases where the tax position needs a professional to stand behind it. It is not a general requirement for sending money abroad.
The four parts of 15CA
- Part A — the payment is taxable in India and the total for the year is ₹5 lakh or less. No 15CB needed.
- Part B — taxable, above ₹5 lakh, and you hold an order or certificate from the Assessing Officer. No 15CB needed, because the officer has already ruled.
- Part C — taxable, above ₹5 lakh, no such order. This is the case that requires a 15CB from a chartered accountant.
- Part D — the payment is not taxable in India at all. A declaration only, no certificate.
So the ₹5 lakh figure is not the line for "do I need to file anything". It is the line, for taxable payments, between filing alone and filing with a CA certificate behind you.
The payments that need neither
Rule 37BB carries a list of specified payments exempt from both forms. It is worth reading if you remit regularly, because a good part of ordinary personal remittance sits on it.
- Remittances for family maintenance and personal gifts.
- Travel for education, business, pilgrimage or medical treatment.
- Payments for imports, in most cases.
- Remittances by an individual that do not require RBI approval under FEMA.
In practice a parent paying tuition or a family sending maintenance abroad usually needs neither form. A business paying a foreign consultant for services usually needs both.
How to work out which applies to you
Is the payment income taxable in India in the recipient's hands?
Tuition to a university is not. A fee to a foreign contractor for work done for your Indian business generally is. This single question decides most cases.
If not taxable, check Rule 37BB
If the payment is on the specified list, no forms. If it is not on the list, file 15CA Part D — a declaration, no certificate.
If taxable, look at the annual total
At or below ₹5 lakh for the year, Part A alone. Above it, Part C with a 15CB from your CA — arrange that before you go to the bank, not at the counter.
