When an Indian resident makes certain payments to a non-resident, the Income-tax Act and rules require information to be furnished in Form 15CA, and in many cases a certificate from a chartered accountant in Form 15CB. The purpose is to confirm that the correct withholding position has been taken before money leaves India.
Information to gather first
Collect the invoice or agreement, details of the remitter and beneficiary, the nature of the payment, the country of the recipient, and a tax residency certificate where treaty benefits are to be claimed. Clear nature-of-payment classification is usually the most important step.
Where mistakes happen
Common errors include misclassifying the nature of the payment, ignoring the treaty position, and overlooking the beneficiary's documentation. These errors can lead to wrong withholding and follow-up notices.
A note on rules
Thresholds, forms and procedures change over time. Always confirm the current position on the income-tax portal or with your adviser before relying on this summary. This article is general information, not advice.