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In India, Form 15CA and Form 15CB are required for payment to NRI. Prior to 2020, Indian companies were required to pay dividend distribution tax (DDT) on dividends paid to shareholders, including non-resident Indians (NRIs). However, in 2020, the government abolished DDT, which shifted the responsibility of tax deduction on dividend payments to NRIs to the companies themselves, as per Section 195 of the Income Tax Act.
\r\n\r\nThis change has led to an increased need for companies to file Form 15CA and Form 15CB to ensure compliance with tax regulations. But filling out these forms manually can be time-consuming and error-prone.
\r\n\r\nBy using a cloud-based online platform for bulk XML creation, you can automate your tax compliance and save time. Here are just a few of the benefits:
\r\n\r\nSo, how does bulk XML creation work?
\r\n
\r\nIt's simple. You upload a file with all of your transaction data, and the online platform generates the required Form 15CA and Form 15CB in bulk XML format. You can then submit the forms directly to Income Tax Portal.
Try our online platform for Form 15CA and Form 15CB bulk XML creation today and experience the benefits for yourself.
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\r\nRegister Now or contact us at:
\r\nsupport@wraptax.com
\r\n+91 9999260234
\r\n\r\n","created_at":"2023-03-30T17:27:54.155481+05:30","updated_at":"2024-06-03T00:54:21.636010+05:30","slug":"form-15ca-form-15cb-bulk-xml-creation","image":null,"keywords":"Form 15CA, Form 15CB, bulk XML creation, tax compliance, cloud-based platform, international transactions, NRI, Section 195, Income Tax Act","tags":[{"id":3,"name":"15CACB"}],"catagory":[{"id":1,"name":"Utility"}],"author":{"id":1,"name":"DEEPAK TAYAL","photo":"https://wraptaxmedia.s3.amazonaws.com/author_photos/Deepak_Tayal_pic.jpg","qualification":"Chartered Accountant","bio":"LLB | BRSR | FAFD | BlockChain | Artificial Intelligence | IFRS"},"related_posts":[{"title":"From Form 15CA/15CB to Form 145/146: A Paradigm Shift in Foreign Remittance Compliance\r\nIntroduction","summary":"The transition from Form 15CA/15CB to Form 145/146 marks a fundamental shift in foreign remittance compliance.","content":"
The Income-tax Rules, 2026 have introduced a completely revamped framework for reporting foreign remittances by replacing:
\r\n\r\nThis is not a mere procedural change—it represents a structural overhaul in reporting, documentation, and tax determination for cross-border payments.
\r\n\r\nUnder the new regime:
\r\n\r\nAs per Rule 220: (Form 145 & 146)
\r\n\r\nWhile the broad classification of Parts (A to D) remains largely consistent with the earlier framework under Rule 37BB, the primary change lies in:
\r\n\r\nForm 145/146 now requires comprehensive profiling of the remitter:
\r\n\r\nNewly Mandatory Fields:
\r\n\r\nThese were not required in earlier Form 15CB, indicating a shift towards identity-based compliance tracking.
\r\n\r\nThe new rules significantly enhance global traceability.
\r\n\r\nAdditional Requirements (Mandatory):
\r\n\r\nThis aligns with international tax transparency standards.
\r\n\r\nNew disclosures include:
\r\n\r\nThis ensures end-to-end traceability of remittance channels, which was missing earlier.
\r\n\r\nA critical shift:
\r\n\r\nThis ensures that:
\r\n\r\nTax under domestic law is determined first, before applying DTAA relief
\r\n\r\nThe rules explicitly state:
\r\n\r\nThis enhances:
\r\n\r\nForm 146 now requires:
\r\n\r\nThere is a notable change in the verification/declaration section in Form 145/146 as compared to Form 15CA/15CB.
\r\n\r\nKey Enhancements:
\r\n\r\nThis reflects a clear shift towards greater legal accountability of the remitter and certifying professional.
\r\n\r\nThe transition from Form 15CA/15CB to Form 145/146 marks a fundamental shift in foreign remittance compliance.
","created_at":"2026-03-27T15:32:56.433649+05:30","updated_at":"2026-04-09T11:06:41.188395+05:30","slug":"from-form-15ca15cb-to-form-145146-a-paradigm-shift","image":"https://wraptaxmedia.s3.amazonaws.com/blog_images/9a12c1f7-8ba3-43de-afb7-2c171dafb830.jfif","keywords":"Form 15CACB\r\nForm 145 & 146\r\nTax Residency Certificate\r\nDouble Taxation Avoidance Agreement","tags":[{"id":3,"name":"15CACB"},{"id":7,"name":"Updates"},{"id":5,"name":"Income Tax"},{"id":27,"name":"Form No 145 & 146"},{"id":28,"name":"Foreign Remittance"}],"catagory":[{"id":3,"name":"Amendment in direct tax"},{"id":5,"name":"Updates"},{"id":6,"name":"Income Tax"}],"author":{"id":411,"name":"VASHU GUPTA","photo":"https://wraptaxmedia.s3.amazonaws.com/author_photos/4a469bc6-4bd0-43a2-86fb-aca525fa55d0.jpg","qualification":"CA Finalist","bio":"Finance & Taxation Enthusiast"}},{"title":"Filed Form 15CA/15CB Recently? Top Filing Mistakes You Must Fix Immediately","summary":"Filing Form 15CA or 15CB does not automatically mean your foreign remittance is compliant, as even small errors can trigger bank rejections, notices, or penalties.\r\nCommon mistakes include wrong part selection, incorrect tax rates, missing DTAA documents, remittance mismatches, and invalid or missing Form 15CB details.\r\nA timely post-filing review and correction of 15CA/15CB helps avoid disallowance of expenses, interest, penalties, and future audit issues.","content":"If you have recently filed Form 15CA or Form 15CB for a foreign remittance, it’s natural to feel relieved. But in cross border tax compliance, a “filed” status does not always mean compliant.
\r\n\r\nIn 2025, the Income Tax Department and banks have significantly tightened scrutiny on 15CA/15CB filings. Even a minor error in Form 15CA CB filing can result in:
\r\n\r\nBefore moving ahead, review your Form 15CA and Form 15CB filing against these most common mistakes taxpayers make.
\r\n\r\nOne of the most frequent 15CA filing mistakes is choosing the wrong part.
\r\n\r\nForm 15CA consists of four parts, and banks strictly validate this:
\r\n\r\nCommon mistake: Filing Part D for payments that are actually taxable (software fees, royalties, technical services).
\r\n\r\nFix: Withdraw the incorrect Form 15CA and refile with the correct part selection.
\r\n\r\n
For taxable foreign remittances exceeding ₹5 lakh, Form 15CB from a Chartered Accountant is mandatory.
\r\n\r\nCommon errors include:
\r\n\r\nWarning: Artificial splitting of remittances to avoid the ₹5 lakh threshold is a major red flag and can trigger audits.
\r\n\r\nThe Nature of Remittance code is critical in 15CA/15CB compliance. It must align with:
\r\n\r\nTypical mistakes:
\r\n\r\nFix: Cross verify the remittance nature with:
\r\n\r\nWhen the Indian payer bears the tax, the remittance becomes a grossed up payment.
\r\n\r\nMistake: Reporting only the net amount in Form 15CA and Form 15CB.
\r\n\r\nFix: Ensure gross up tax calculations are correctly reflected in both forms.
\r\n\r\nMany taxpayers apply only the base TDS rate while filing Form 15CA/15CB.
\r\n\r\nHowever, tax computation may also require:
\r\n\r\nFix: Recalculate tax considering surcharge and cess, unless DTAA benefit applies and cess is specifically excluded.
\r\n\r\nEvery Form 15CB certificate must have a valid UDIN generated by the CA.
\r\n\r\nCommon issues:
\r\n\r\nIf invalid, the Form 15CB and related Form 15CA may be rejected.
\r\n\r\nFix: Verify UDIN status under “View Filed Forms” on the income tax portal.
\r\n\r\nBanks strictly verify foreign recipient details in 15CA/15CB filings.
\r\n\r\nCommon causes of rejection:
\r\n\r\nFix: Ensure recipient details and RBI purpose code match across:
\r\n\r\nTo claim DTAA benefits and apply a lower tax rate:
\r\n\r\nare mandatory.
\r\n\r\nMistake: Applying DTAA rates without a valid current year TRC.
\r\n\r\nFix: Ensure the TRC corresponds to the relevant financial/calendar year of the recipient’s country.
\r\n\r\nIf you discover a mistake, act quickly:
\r\n\r\nTimely correction avoids remittance delays and tax notices.
\r\n\r\nIgnoring errors in Form 15CA and Form 15CB filing can result in:
\r\n\r\nForm 15CA/15CB filing is not a mere formality, it is a legal declaration of foreign remittance tax compliance.
\r\n\r\nA quick post filing review of your 15CA CB filing can save you from:
\r\n\r\nIf you have already filed, don’t assume it’s error free.
\r\nReview it now and fix issues while you still can.
A lot of businesses assume that if they’re paying a foreign vendor through a credit card, everything is automatically taken care of.
\r\nFEMA rules, income tax compliance all handled in the background.
That assumption is exactly where the problem starts.
\r\n\r\n\r\n\r\n\r\nHere’s the truth most people don’t realise:
\r\n
\r\nhow you pay doesn’t decide compliance what you’re paying for does.
In practice, a huge number of businesses in India end up getting their Form 15CA/15CB compliance wrong, especially for credit card payments. And it usually comes to light only when there’s an audit, scrutiny or a blocked transaction.
\r\n\r\nThese forms come from the Income tax Act and apply whenever money is paid to a non resident.
\r\n\r\nForm 15CA is a declaration made by the person or business sending the payment. It captures details like what the payment is for and how much is being remitted.
\r\n\r\nForm 15CB is a certificate issued by a Chartered Accountant. It confirms whether the payment is taxable in India, what tax rate applies and whether any treaty benefit can be claimed.
\r\n\r\n\r\n\r\n\r\nIn simple terms:
\r\n
\r\n If a foreign payment is taxable, 15CA and 15CB are part of the compliance regardless of whether the payment is made through a bank transfer or a credit card.
From what we see in real cases, the mistakes usually aren’t intentional. They happen because the rules aren’t explained clearly.
\r\n\r\nThe most common problem areas are:
\r\n\r\nIndividually, these seem small. Together they create serious compliance risks.
\r\n\r\nMany everyday business payments made using international credit cards still need proper tax evaluation. For example:
\r\n\r\nIf the payment involves services or rights that are taxable in India, the compliance obligation doesn’t disappear just because a credit card was used.
\r\n\r\nThere are a few reasons this issue flies under the radar:
\r\n\r\nBy the time the issue surfaces, fixing it becomes harder and more expensive.
\r\n\r\nGetting this wrong can lead to:
\r\n\r\nNone of this is visible on day one, which is why the risk is underestimated.
\r\n\r\nIf your business makes international payments:
\r\n\r\nIf your business pays for software, ads, cloud services or professional help from outside India, it’s worth reviewing whether your 15CA/15CB compliance is actually in order.
\r\n\r\nAt WrapTax, we work with businesses to:
\r\n\r\nGetting this right early saves far more time and cost late.
","created_at":"2025-12-23T11:04:31.209664+05:30","updated_at":"2025-12-23T11:12:25.527135+05:30","slug":"surprise-fact-international-credit-card-payments-c","image":"https://wraptaxmedia.s3.amazonaws.com/blog_images/443279e8-c5bd-4068-a86e-db6407b3c228.png","keywords":"Form 15CA / 15CB compliance\r\n\r\nInternational credit card payments tax\r\n\r\nForeign remittance to non-resident\r\n\r\nTDS on foreign payments (India)\r\n\r\nCross-border payment compliance India","tags":[{"id":3,"name":"15CACB"},{"id":10,"name":"Credit Card Payment"}],"catagory":[{"id":6,"name":"Income Tax"}],"author":{"id":413,"name":"PRATHAM GUPTA","photo":"https://wraptaxmedia.s3.amazonaws.com/author_photos/WhatsApp_Image_2025-10-15_at_11.21.49_AMedited.jpeg","qualification":"CA Finalist","bio":"Income Tax | GST | International Taxation Matters"}}]}