Form A2 Checklist: Send Money Abroad Without Bank Delays

Key takeaways

What is Form A2 for outward remittance?

Form A2 is an RBI mandated declaration under FEMA used by Authorized Dealer banks to process outward remittances from India. In simple terms, it captures who you are, how much you are sending, why you are sending it, and to whom abroad, ensuring the payment meets compliance rules.

Read the complete primer here: Form A2. Under LRS, individuals can remit up to USD 250,000 per financial year, while registered businesses remit for imports, services, or subscriptions outside LRS.

Unlike e-FIRA used for inward receipts, Form A2 is for outbound payments, and it typically pairs with Forms 15CA and 15CB for tax declarations and CA certification when applicable.

When Indian freelancers need Form A2

• Paying foreign contractors for project work, for example a US designer billing $1,200.
• Software and SaaS subscriptions, for example cloud, creative, or email marketing tools.
• Training, conference tickets, or certification exams, online or overseas events.
• Refunds or chargebacks to clients abroad.
• Small equipment imports, for example cameras or microphones.
• Investments, which often need extra FEMA or RBI approvals beyond LRS.

In all these scenarios, banks ask for Form A2 and supporting documents before processing.

The complete Form A2 supporting documents checklist

Universal items for every remittance

• Updated PAN, address proof, and bank KYC, ensure your bank has current records.
• Complete beneficiary details, name, address, bank name and address, SWIFT or BIC, IBAN or account number.
• Correct RBI purpose code, must align with the invoice and nature of payment.
• Filled and signed Form A2, complete all fields and declarations.
• Form 15CA and Form 15CB with UDIN if applicable, choose the right 15CA part, add 15CB when taxable and above the threshold.

Documents for service payments to freelancers or agencies

• Invoice or proforma invoice, clear service description, amount, parties, terms.
• Contract, SOW, or email trail, proof of a legitimate business transaction.
• Purpose code for professional or technical services, typically S1004 to S1020.
• Standard declarations covering FEMA compliance, end use, and tax responsibility.

Documents for software and SaaS subscriptions

• Invoice, receipt, or order confirmation from the provider, save the PDF.
• Purpose code for IT or software services, from your bank’s current list.
• 15CA and 15CB notes, often 15CA Part A, consult a CA for large licenses.

Documents for payments to foreign contractors, detailed

• Invoice, contract, and contractor tax ID, especially in DTAA countries.
• TRC, Form 10F, and No PE declaration when claiming treaty benefits.
• Purpose code for technical or professional services, align with work performed.

Documents for education, training, or conference fees

• Admission letter, registration confirmation, or fee invoice.
• Purpose code for education or training, dedicated RBI codes exist.
• LRS declaration if remitting as an individual.

Documents for importing goods or equipment

• Commercial invoice, with goods, quantity, price, and shipping terms.
• Packing list, itemized per box or shipment.
• Bill of Entry, proof of customs clearance when required.

Documents for investments or capital transactions

• FEMA permissions or RBI approvals when applicable.
• Board resolution or shareholder approval for companies.

How to choose the correct purpose code

The purpose code is a 4 digit classification used by RBI to label every remittance, banks reject submissions with wrong or missing codes. Match the code to your invoice and your bank’s latest list.

Common codes for freelancers:

• S1004, business and management consultancy, PR services.
• S1005, architectural, engineering, and other technical services.
• S1006, advertising, trade fair, and market research.
• S1007, operational leasing services, less common for freelancers.
• S10xx, software licenses, cloud services, and IT support.
• S0200 to S0299, education related fees and training.

Tip: Maintain a simple spreadsheet mapping repeat vendors to the correct code, for example “Designer A invoice = S1005”. A quick phone call to your bank’s forex desk can prevent a week long hold, it’s worth five minutes.

Declarations you’ll sign on Form A2

• FEMA declaration, confirms bona fide purpose and no prohibited activity.
• LRS declaration for individuals, source of funds and annual limit compliance.
• Tax declaration in Form 15CA, taxability, TDS status, and 15CB reference.
• Treaty benefits declaration when using DTAA documents for reduced withholding.

These protect you and the bank, by signing you affirm compliance and due diligence.

Form 15CA and Form 15CB, quick guide

Forms 15CA and 15CB are tax-side declarations, simpler than they appear once you know which part applies.

• Form 15CA, your self-declaration, Parts A, B, C, and D cover non-taxable payments, smaller taxable payments, taxable with CA certificate, and special cases.
• Form 15CB, a CA certificate with UDIN, needed when the payment is taxable and generally exceeds ₹5 lakh or involves treaty computation.

Practical tip: share the invoice, contract, beneficiary tax details with your CA early, they need time to review DTAA, compute TDS, upload 15CB, and give you the certificate number for 15CA Part C.

If your payment is genuinely non-taxable, for example buying software for own use, you can often file 15CA Part A yourself, but consult your CA when unsure.

What your bank needs, format and timelines

Banks accept submissions physically or digitally depending on process.

• Completed and signed Form A2.
• PAN copy.
• Invoice or receipt.
• 15CA and 15CB when applicable.
• Beneficiary bank details with SWIFT and IBAN.
• Additional proofs like contracts, admission letters, or Bill of Entry.

Processing timelines:

• Same day if submitted before cutoff and complete.
• 1 to 2 working days with standard verifications.
• 3+ days when documents are missing or mismatched.

Preparation tip: keep a dedicated “Outward Remittances” folder with invoice, contract, Form A2, 15CA/CB, purpose code notes, and email confirmations. It speeds submissions and helps during tax filing.

Step by step, how to fill Form A2 correctly

Section 1, Remitter details, name as per PAN, full address, PAN, and contact.

Section 2, Amount and currency, specify currency, amount, and purpose code, the bank applies the rate on processing day.

Section 3, Beneficiary details, exact name, address, bank address, SWIFT or BIC, IBAN or account number, copy wire instructions verbatim.

Section 4, Source of funds, business income, professional income, salary, savings, or other lawful sources under LRS.

Section 5, Declarations, tick or sign FEMA, LRS, and tax responsibility statements, then sign and date.

Final check: names, amounts, purpose code, invoice alignment, and all attachments complete. A careful five minute review saves days of back and forth.

Common errors that cause holds

• Purpose code mismatch with invoice description.
• Missing 15CB or missing TRC when claiming treaty benefits.
• SWIFT or IBAN typos, cause bounce backs and correspondent fees.
• Name mismatch between invoice and beneficiary account name.
• Unsigned or incomplete Form A2.
• Outdated KYC or PAN address.

A little cross checking and documentation discipline prevents these delays.

Typical timelines, fees, and taxes

Processing time, 1 to 3 working days once documents are in order, SWIFT credits generally land in 1 to 2 days after release.

Bank fees, forex margin, SWIFT or wire fee, and sometimes a processing charge for Form A2, ask for a fee breakdown before authorizing.

TCS under LRS, banks collect TCS above thresholds, you can claim credit in your income tax return, the bank issues a certificate.

GST and RCM on imported services, freelancers may need to pay GST under RCM for certain services, speak to your accountant to avoid compliance gaps.

Printable checklist and templates you can use

Universal checklist:

• PAN copy, address proof, updated KYC.
• Beneficiary details, name, address, bank name and address, SWIFT or BIC, IBAN or account number.
• Correct RBI purpose code.
• Completed and signed Form A2.
• Form 15CA and 15CB when required.

Add for services: invoice, contract or email trail, S1004 to S1020 purpose code, standard declarations.

Add for SaaS: invoice or receipt, software purpose code, 15CA Part A or Part C if taxable.

Add for foreign contractors: invoice, contract, tax details, TRC, Form 10F, No PE declaration when claiming DTAA benefits.

Add for education: admission or registration proof, fee invoice, education purpose code, LRS declaration.

Add for goods: commercial invoice, packing list, Bill of Entry.

Sample email to bank’s forex desk

Subject: Outward Remittance Request – [Your Name] – Invoice [Number]
Dear [Bank] Forex Team,
I want to remit under LRS for professional services to [Beneficiary] in [Country]. Attached: 1) Form A2, 2) Invoice [Number], 3) PAN copy, 4) Form 15CA Part A, 5) Beneficiary bank details, 6) Contract/email trail. Purpose code S1005. Within LRS, FEMA compliant. Please confirm receipt and process by [Target Date].
Thank you,
[Your Name], [Contact Number]

Sample declaration snippet

“I, [Your Name], PAN [Number], declare this remittance of USD [Amount] to [Beneficiary] is for the bona fide purpose of [service], per invoice dated [Date]. It does not violate FEMA. I accept tax responsibility and have filed Form 15CA accordingly.”

Form A2 vs receiving money, understand the difference

Form A2 is only for sending money out of India. For inward receipts, banks issue e-FIRA or FIRC as proof of foreign exchange received.

Platforms purpose built for Indian freelancers, for example Karbon Business, streamline inward payments by giving local collection accounts in USD, GBP, EUR, and CAD, clients pay via ACH, SEPA, or FPS, e-FIRA is auto generated within 24 hours, and INR settles in 24 to 48 hours with a flat platform fee and zero FX markup.

For outward flows, stick to Form A2, the right purpose code, and the tax forms outlined above, they are different tracks by design.

Real life case studies, Form A2 in action

Case 1, paying a US designer $1,200

Priya in Bangalore hired a New York designer for brand identity.

• Invoice for $1,200 with clear details.
• Email SOW and bank wire instructions.
• Purpose code S1005.
• Form A2 and 15CA Part A.

She uploaded via netbanking, bank processed in 2 working days, designer received funds on day 3.

Case 2, renewing SaaS for $899

Rohan’s annual tool renewal arrived.

• Provider invoice showing $899 and subscription period.
• Software purpose code from bank list.
• Form A2 and 15CA Part A.

Branch processed same day, subscription renewed promptly.

Case 3, conference ticket in Europe for $450

Anjali registered for a UX conference.

• Registration confirmation and invoice.
• Education or training purpose code.
• Form A2, LRS declaration, 15CA Part A.

The bank asked for event proof, she attached the brochure, remittance cleared in 2 days.

FAQ

Do I really need Form A2 for small amounts like $100 to a software vendor?

Yes, if you are remitting from your bank as a business expense, Authorized Dealer banks require Form A2 even for low value amounts, the invoice or receipt plus correct purpose code is sufficient. Alternatively, if you pay with an international card, it may bypass Form A2, but you lose the clean audit trail that your CA and GST filings prefer. For inward receipts, consider Karbon Business to automate e-FIRA while keeping outward payments via Form A2 clean.

How do I pick the right RBI purpose code for paying a US designer under LRS?

Match the invoice description to S1004 or S1005 depending on the work, for design and technical services, S1005 fits most cases. Confirm with your bank’s latest list and ensure your invoice states “design services” or similar, the alignment between invoice and purpose code matters more than anything else.

Do I need Form 15CB for freelancer payments below ₹5 lakh?

Often no, if the payment is non-taxable or TDS is not applicable, file Form 15CA Part A and proceed. When taxability exists but the amount is small, your CA may advise Part B without 15CB. If treaty analysis is needed, or cumulative payments cross ₹5 lakh, engage a CA for 15CB. Karbon Business can help on the inward side, but for outward taxes your CA’s advice is essential.

Can I club multiple invoices for the same contractor in one outward remittance?

Some banks allow clubbing if all invoices belong to the same beneficiary and purpose code, you’ll list each invoice in a cover letter. Many freelancers find it simpler to do one Form A2 per invoice to avoid reconciliation errors later, check your bank’s policy before submitting.

What documents should I collect from a foreign contractor to claim DTAA benefits?

Collect the Tax Residency Certificate, Form 10F, and a No PE declaration from the contractor, then share with your CA to compute withholding under the treaty and issue 15CB with UDIN. Attach these with Form A2 and 15CA Part C, banks look for this bundle when treaty benefits are claimed.

How long does a SWIFT transfer take from India and what fees should I expect?

Once the bank releases funds, beneficiary banks usually credit in 1 to 2 days. Expect a forex margin, a SWIFT fee, sometimes a processing charge, and possible correspondent fees if details are wrong. Always ask your bank for a fee breakdown before approval, it helps you price your projects correctly.

Is paying via card or PayPal better than Form A2 for business expenses?

Cards or wallets can be faster, but they do not create the clean documentation trail that Form A2 plus invoice plus 15CA provides, which your CA needs for audit readiness, GST, and TCS credits. Use Form A2 for significant business payments, keep cards for small personal spends. For receiving client money, Karbon Business simplifies collections with local rails and e-FIRA automation.

What is TCS under LRS and how do I claim it back?

Banks collect TCS on eligible LRS remittances above thresholds, they debit your account at the time of remittance and issue a certificate. You claim this TCS as credit when filing your income tax return, it is not an extra tax you lose, it is an advance collection tracked to your PAN.

My bank held the payment due to name mismatch on the invoice and the beneficiary account, what should I do?

Ask the contractor to reissue the invoice in the exact legal name that appears on the beneficiary bank account, even small variations can trigger holds. Re-submit Form A2 with the corrected invoice and a short cover note, most banks clear it within one business day after the fix.

How can I reduce back and forth with the bank’s forex desk?

Create a repeatable pack, invoice, contract or email trail, correct purpose code note, beneficiary details letter, Form A2, 15CA, and 15CB if needed. Store it in a folder per vendor, review spellings and numbers before submission. For inward flows and faster client payments, Karbon Business offers local collection accounts and auto e-FIRA, keeping your compliance tidy on both directions.

Do Indian freelancers have to pay GST under RCM for imported services like design or consulting?

Yes in many cases, if the service qualifies as import of service, you may need to pay GST under RCM, then claim input credit as per rules. This is separate from Form A2 processing, coordinate with your CA to file correctly, maintain invoices and bank proofs for audit readiness.

I am paying for a $10,000 annual software license, which 15CA part should I choose?

Large licenses may require treaty and taxability review, your CA will typically issue 15CB and you will file 15CA Part C referencing the 15CB certificate number. Attach the provider invoice and the software purpose code, banks expect this bundle for high value subscriptions.

If my remittance is urgent, can banks process same day?

Yes, submit a complete pack before the cutoff time, usually 2 PM to 3 PM, and request same day SWIFT. If anything is missing, expect the bank to hold and ask questions, which pushes it to 1 to 2 working days. A perfect checklist upfront is the fastest path.

What’s the difference between Form A2 and e-FIRA in one line?

Form A2 is for sending money out, e-FIRA is proof of money received in, for inward receipts many freelancers use Karbon Business to automate e-FIRA and speed INR settlement, while banks handle outward remittances with Form A2 plus purpose code and tax forms.