FORM 15CA AND 15CB
Both FEMA regulations as well as Income Tax Act has prescribed rules to regulate any payments made overseas by any Resident. This is done in order to avoid money laundering and to ensure proper financial discipline relating to overseas payment.
At the time of remittance outside India by any Residents, besides other documents, bankers usually ask for the copies of form 15CA and 15CB.
Now, a question arises what exactly is form 15CA and 15CB?
Well the purpose of filing both the form 15CA and 15CB is to ensure that the taxes are collected before remittance of money outside India. Now, both the forms may be filed electronically which helps in monitoring as well as checking the effectiveness of remittances.
WHAT IS FORM 15CA?
In such form, the remitter of money makes a declaration that He has deducted the relevant taxes before remitting money to the Non Resident.
WHAT IS FORM 15CB?
In such form, which is sort of certificate by Chartered Accountant, He certifies that at the time of deduction of taxes, provisions of Income Tax Act and Double Taxation Avoidance Agreement i.e. DTAA has been properly complied with.
SOME COMMON MYTHS ABOUT FORM 15CA AND 15CB
Also, in case form 15CA has been withdrawn, automatically, form 15CB would also be withdrawn.
Thus, from above, it may be inferred that filing of form 15CA and 15CB are mandatory for the purpose of remittance outside India.
In case you require any information or clarification or any further assistance, you may contact EzyBiz India at www.ezybizindia.in or call at +919899217778