Withholding tax on foreign remittances

What this covers

Before most payments are made to a person outside India, the remitter must determine what tax is required to be withheld and report the remittance to the Income Tax Department. Form 15CB is the certificate of a Chartered Accountant on the taxability of the remittance and the rate applied; Form 15CA is the remitter's own declaration, filed on the portal and produced to the bank.

Statutory basis

Withholding on payments to non-residents is governed by the Income-tax Act, 2025, which came into force on 1 April 2026 and repealed the Income-tax Act, 1961. For remittances up to 31 March 2026 the corresponding provision was section 195 of the old Act, with the information requirement in section 195(6) and Forms 15CA and 15CB prescribed by Rule 37BB of the 1962 Rules. The form numbering and rule reference changed with the Income-tax Rules, 2026, so we confirm the current form and part for the particular remittance. Treaty relief comes from the Double Taxation Avoidance Agreement with the recipient's country of residence — formerly sections 90 and 90A.

Who it applies to

Any person making a remittance outside India that is chargeable to tax in India. The Rules exempt a specified list of remittances and prescribe which part of the declaration applies; which part you file, and whether the accountant's certificate is needed at all, depends on the nature and the amount of the remittance, and both the exempt list and the limits have been revised.

What we do

1. 1Establish the nature of the payment and whether it is chargeable to tax in India at all.
2. 2Determine whether a treaty applies and whether it reduces the rate, and confirm the documents the benefit depends on — Tax Residency Certificate, the prescribed treaty declaration, and a no-permanent-establishment declaration where relevant.
3. 3Consider whether the payment is royalty, fees for technical services, interest, business income or a reimbursement, because the answer changes the rate and sometimes the liability itself.
4. 4Where the recipient has no permanent account number, apply the higher rate the Act requires in that situation; the corresponding provision under the 1961 Act was section 206AA.
5. 5Issue the accountant's certificate, and prepare and file the applicable part of the declaration, on the forms current under the Income-tax Rules, 2026.
6. 6Provide the bank-ready set, with the working retained on file.

What you receive

Form 15CB

The accountant's certificate on taxability and rate, signed and uploaded, with its number.

Form 15CA

The remitter's declaration filed with acknowledgement, in the part the Rules require.

Position note

The treaty article relied on, the rate applied and the documents held — and where the position is arguable, a note saying so.

Documents and information required

Invoice or agreement with the non-resident · nature and purpose of the remittance · payee name, address and country of residence · Tax Residency Certificate and the prescribed treaty declaration · no-permanent-establishment declaration where a treaty benefit is claimed · payee permanent account number if available · remitting bank details · previous certificates issued for the same payee.

Key dates

Both forms are transaction-based. The certificate is issued and the declaration filed before the remittance; banks will not process the transfer without them. Allow two to three working days for a first-time payee, since treaty documentation usually has to be obtained from the recipient. For a remittance relating to a period before 1 April 2026, the old Act and the old forms may still be the operative ones.