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Form 15CA and 15CB Form 15CA and 15CB are one of the documents, besides other documents, asked by the banker from the remitter at the time of remittance of money outside India.   Post liberalization of Indian economy in 1992, over the years, India has witnessed tremendous growth in international transactions by not even corporates but also Resident Individuals.   Therefore, every day millions of transactions are done through banking channels in the form of receipt of money in India or remittance of money abroad. In order to regulate such transactions through normal banking channels, revenue authorities in India in consultation with Reserve bank of India has prescribed some mandatory documents and procedures in order to check the authenticity of such payments and in order to ensure smooth processing of such transactions. One such mechanism is filing of form 15CA and 15CB at the time of remittance of money abroad.   Accordingly, every remitter of money to N...

Form 15CA and 15CB Whenever any remittance is required to be made to Non Resident or to foreign banks or foreign company, the bankers usually ask for copies of form 15CA and 15CB from the remitter.   In this writeup, we will try to understand about form 15CA and 15CB and when it is required.   Legal requirement of form 15CA and 15CB   As per rule 37BB of the Income Tax act, 1961, at the time of any payment to any non-resident or foreign company, which exceeds the amount of Rs 500000 ( Chargeable to tax), the remitter has to furnish the details under the form 15CA under the Income-tax act and also has to obtain form 15CB from Chartered Accountant. Nowadays, both form 15CA and 15CB needs to be filed online on the portal of the tax department.   What is form 15 CA?   Form 15CA is a sort of declaration which is filed online by the remitter wherein He states that proper taxes has been deducted at the time of making remittance of money abroa...

  Filing of Form 15CA and 15CB In order to transfer a payment to a foreign company or outside India, it is necessary to abide by various rules and regulations.   According to Section 195 of the Income-tax Act, 1961, any person who pays money to a non-resident, including foreign companies is required to deduct income tax. Further, one of the requirements for making payment outside India is filling of form 15CA and 15CB .   What are Form 15CA and 15CB?   The main objective of filing the form 15CA and 15CB is to collect taxes as soon as the remittance is made, because it becomes more difficult to collect taxes from non-residents later.   For that reason, forms 15CA and 15CB were electronically filed in order to monitor and check the effectiveness of such transactions.   Form 15CA:   Form 15CA states that a person remitting money to a non-resident has deducted the tax from those payments.   Form 15CB:   Form 15...

Form 15CA and 15CB   When an individual or company transfers funds from an Indian bank account to the foreign bank account in foreign country, it is called as foreign remittance. For remitting money outside India, besides other mandatory documents, bankers often ask for the copies of form 15CA and 15CB .   Form 15CA is an online declaration made by the remitter of money stating that tax has been deducted from any such payment made to person in other country. The purpose of form 15CA is that before remittance of money, if any tax is liable to be deducted, same has been deducted.   Form 15CB is CA certificate issued online by a Practicing Chartered Accountant. The purpose of form 15CB is to ensure that taxes have been properly computed taking into consideration the provisions of the Income tax Act and the provisions of the Double Taxation Avoidance Agreement.   Money is permitted to be remitted outside India by the AD Banker when following conditions are ful...