Question 1

When do I need Form 15CA, Form 15CB, or both?

Accepted Answer

Form 15CA is a declaration by the remitter, Form 15CB is a CA certificate. Applicability depends on whether the remittance is taxable and how large it is:

• Part A of 15CA: remittance is chargeable to tax and total such remittances during the year don't exceed ₹5 lakh. No 15CB needed.
• Part B: remittance is chargeable to tax, exceeds ₹5 lakh, and you've obtained a certificate from the AO under Section 195(2), 195(3), or 197.
• Part C: remittance is chargeable to tax, exceeds ₹5 lakh, and you have a CA-certified Form 15CB.
• Part D: remittance is not chargeable to tax (capital account transactions, gift, education-related items in the RBI exempt list).

We map your specific transaction to the right Part before filing.

Question 2

What TDS rate applies if the foreign vendor has no PAN?

Accepted Answer

Under Section 195 read with Section 206AA, where the non-resident payee doesn't have a valid PAN in India, TDS is deducted at the higher of:

• The rate specified in the relevant section of the Income Tax Act, or in DTAA (where treaty benefits are claimed with TRC and Form 10F), or
• 20%.

DTAA rates can apply even without PAN, provided the payee furnishes TRC, Form 10F, and a no-PE declaration. We help structure the documentation so the lower DTAA rate sticks.

Question 3

I'm buying property from an NRI. What TDS rate applies?

Accepted Answer

TDS is deducted under Section 195, not Section 194-IA. Practical points:

• The 1% TDS under Section 194-IA only applies when the seller is a resident.
• For NRI sellers, TDS is on the capital gains amount, not the sale price, though typically the buyer deducts at the gross long-term rate (20% plus surcharge and cess) and the seller claims a refund later.
• The buyer needs a TAN to deduct TDS, file Form 27Q, and issue Form 16A.
• A lower or nil TDS certificate under Section 197 brings down the working-capital impact significantly.

Question 4

How does DTAA help reduce the TDS rate?

Accepted Answer

A DTAA (Double Tax Avoidance Agreement) lets the foreign payee claim a lower tax rate than the default Income Tax Act rate. To claim DTAA on a remittance, the payee has to provide:

• Tax Residency Certificate (TRC) from the home country.
• Form 10F filed on the Indian Income Tax portal.
• Self-declaration of no Permanent Establishment in India (where treaty requires it).

We verify each of these against the specific article of the relevant DTAA before issuing Form 15CB, so the remittance bank doesn't reject the deduction.

Question 5

How long does the 15CA / 15CB process take?

Accepted Answer

For straightforward cases such as professional fees, royalty, or interest where documentation is in order, we close in 1 to 2 working days. Where Section 197 lower-deduction certification is involved, the process runs 6 to 8 weeks because it includes an AO application and hearings. We sequence the workflow so the remittance to the foreign payee isn't blocked at the bank.

Question 6

What TDS rates apply on different types of payments to non-residents under Section 195?

Accepted Answer

Where DTAA is not invoked, default Section 195 rates (plus applicable surcharge and cess) by income type are:

• Investment income earned by an NRI: 20%.
• Long-term capital gains (other than 112A equity LTCG): 20%.
• House property / rental income: 20%.
• Interest on foreign currency borrowings: 20%.
• Short-term capital gains under Section 111A (equity STCG): 15%.
• Sale of immovable property: 20% on long-term gains.
• Fees for Technical Services (FTS): 20%.
• Business income where the payee has a Permanent Establishment in India: 40%.
• Any other income: 30%.

DTAA can bring several of these down materially, often to 10% or 15%, provided the payee furnishes a Tax Residency Certificate, Form 10F, and a no-PE declaration where the treaty requires it. We work out the comparison both ways before issuing Form 15CB so the lowest defensible rate is used.

Foreign Remittance, Form 15CA & 15CB

Simple Pricing With Deliverables

Our Process

Remittance Assessment

Determine Applicable Part

Form 15CB (if needed)

Form 15CA Filing

Bank Submission

Features

Part A, Small Remittance

Part B, With AO Certificate

Part C, With CA Certificate

Part D, Not Chargeable

Key Points

Frequently Asked Questions

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