Income Tax Department Verifies Suspicious Foreign Remittances: 394 Entities and 36 Form 15CB Certifiers

Form 15CB is the certificate a Chartered Accountant issues before many foreign remittances, confirming how the payment is taxed and how much tax should be withheld. The banks rely on it to process the remittance. The Department's latest exercise shows that it is now analysing remittance data and certificate patterns, and holding certifying professionals accountable as well as the remitters.

What the Department found

• Intelligence and analysis of outward remittance data identified entities that sent large sums abroad over three years.
• A search uncovered a nationwide network linked to shell charitable trusts that provided bogus accommodation entries for fake donations.
• Many remitting entities had not filed returns, or reported turnover with no apparent link to the amounts remitted.
• Stated purposes such as freight, software imports and consultancy did not match the entities' profiles, and several were not operating from their registered addresses.
• A small group of professionals issued a disproportionately large number of Form 15CB certificates, and the overseas recipients formed a concentrated cluster.

Form 15CB under the new rules

Form 15CB under Rule 37BB of the Income-tax Rules, 1962 corresponds to Form 146 under Rule 220 of the Income-tax Rules, 2026. In it, an accountant certifies the taxability of a remittance and the tax to be withheld after examining the books of account and documents.

Due-diligence checklist before certifying a remittance

1. 1

   Know the remitter

   Check that the entity files returns and that its turnover and business profile support the size of the remittance.

2. 2

   Check the underlying transaction

   Obtain and review the invoice, agreement, purchase order and proof of services or goods actually received.

3. 3

   Verify the payee

   Confirm the recipient's identity, country, tax residency certificate and Form 10F where DTAA benefit is claimed.

4. 4

   Determine taxability properly

   Analyse the nature of the payment under the Act and the DTAA, and work out the correct withholding.

5. 5

   Keep a working file

   Retain copies of documents and your analysis for every certificate, so you can respond if asked.

6. 6

   Watch for red flags

   Repeated remittances to the same overseas parties, new entities with large remittances, mismatched purposes or addresses, and pressure to certify quickly.

What remitters should do

Businesses making foreign payments should keep supporting documents ready and make sure their returns reflect the transactions. If you receive a verification letter or notice, reply within the time allowed with full documentation. NoticeCPC helps track such notices and deadlines.