US to India · Outward remittance compliance
Form 15CA and 15CB: What an Indian Subsidiary Needs Before Sending Money Abroad
Prepared by AU Corporate's CA-led advisory team · Published 14 October 2026 · General information; confirm current thresholds and exemptions with a chartered accountant before relying on them.
Whichever route an Indian subsidiary uses to send money to its US parent — a dividend, a royalty or licence fee, a management or service fee, loan repayment, or the residual proceeds of a closure — the bank will generally expect two specific pieces of paper before it releases the payment: Form 15CA and, in many cases, Form 15CB. Understanding what these are and when the certificate is actually required avoids a last-minute delay at the point money is due to move.
Quick answer
What are Form 15CA and Form 15CB, and when does an Indian subsidiary need them?
Form 15CA is the remitter's own declaration, filed on the income-tax portal, about a payment to a non-resident. Form 15CB is a chartered accountant's certificate on the nature, taxability and applicable rate of that payment, required for many — but not all — taxable remittances above the current threshold. Which parts of Form 15CA apply, and whether Form 15CB is needed at all, depends on the amount, the taxability of the payment and any exemption under the current rules. Confirm the specific treatment with a chartered accountant before the payment is due.
1. Understand what each form actually does
Form 15CA is the paying entity's declaration about a payment to a non-resident, filed through the income-tax department's e-filing portal. Form 15CB is a separate certificate from a practising chartered accountant, covering the character of the payment, whether it is chargeable to tax in India, the applicable rate (including any tax-treaty position), and the basis for that conclusion. The authorised dealer bank processing the transfer will typically want to see both before it releases funds, where the 15CB certificate is required for that payment.
2. Work out whether the certificate is needed for this payment
Not every remittance needs the full set. The applicable treatment depends on the amount involved, whether the payment is taxable in India at all, and whether a specific exemption under the current rules applies — for example, certain import-related payments and other listed categories have historically been treated differently from a dividend or royalty payment. Because the exempt-payment list and thresholds have changed over time and are reported inconsistently across secondary sources, do not rely on a single blog's summary: confirm the current position under Rule 37BB of the Income-tax Rules, 1962 and Section 195 of the Income Tax Act, 1961 with a chartered accountant before the payment is due.
3. See how this applies across common payment types
| Payment from the Indian subsidiary | What to check first | Related AU guide |
|---|---|---|
| Dividend to the parent | Declaration/payment route, withholding tax and any treaty rate | Repatriating profits |
| IP royalty or licence fee | Royalty classification, withholding rate and transfer-pricing support | IP royalty/licence guide |
| Management or service fee | Fee substantiation, transfer-pricing documentation and GST position | Management-fees guide |
| Loan repayment or interest | Loan terms, applicable interest-rate rules and withholding position | Loan/ECB vs equity guide |
| Residual funds on closure | Auditor's certificate, liabilities cleared and final tax position | Closing/liquidation guide |
4. Build the paperwork before the payment is due
- Identify the payment type and gather the supporting agreement, invoice or board resolution.
- Engage a chartered accountant early to assess taxability, the applicable rate and whether Form 15CB is required.
- File Form 15CA with the correct part (based on amount and taxability) before approaching the bank.
- Share the filed forms and supporting documents with the authorised dealer bank in the format it requires.
- Keep records of the filing, certificate and bank confirmation for the company's compliance file.
Starting this process only once a payment is "ready to send" is a common cause of delay. Build it into the same planning conversation as the underlying payment decision — see our repatriation guide for the broader planning context.
Frequently asked questions
Does every payment from an Indian subsidiary to its US parent need Form 15CA and 15CB?
Not necessarily. The requirement and the specific parts of Form 15CA that apply depend on the amount, whether the payment is taxable in India, and whether an exemption under the current rules applies. Confirm the applicable treatment for the specific payment with a chartered accountant before assuming either way.
Who prepares Form 15CB?
A practising chartered accountant certifies Form 15CB, covering the nature and taxability of the remittance and the applicable tax rate, including any tax-treaty position. It is separate from Form 15CA, which is the declaration filed by the remitter.
Is Form 15CA filed by the company or the bank?
The remitter (the Indian subsidiary, or whoever is making the payment) files Form 15CA through the income-tax department e-filing portal. The authorised dealer bank will generally expect to see the filed form, and the 15CB certificate where one is required, before releasing the payment.
Does this apply to dividend, royalty, management-fee and loan-repayment transfers the same way?
The underlying requirement is the same regulatory framework, but the taxability, applicable rate and documentation can differ by payment type. Treat each payment type on its own facts rather than assuming the same answer as a different kind of remittance.
This article is general information, not tax advice. Confirm the current text of Section 195 and Rule 37BB, any applicable tax treaty, and the specific facts of the payment with a qualified chartered accountant before relying on any threshold or exemption described here.