People sending money to NRIs must know what is 15CA and 15CB. They are basically Income Tax Forms. Let me explain what is form 15CA and 15CB in simple words.
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Form 15CAForm 15CA is a declaration that a person makes while remitting money to NRIs or to a foreign company. He/she is liable to deduct TDS if the amount is chargeable as per the Income Tax rules and such details are to be furnished in this form.
Form 15CBForm 15CB is an accountant’s certificate that is necessary for paying money to an NRI or to a foreign company that is liable to tax if the amount exceeds Rs 5 lakh in the financial year.
When is form 15CA and 15CB required?
Let me write about the applicabilities of Form 15CA and Form 15CB for your better understanding-
In order to fill these forms, the amount of the remittance must be taxable. If not, you should not fill out these forms
If the remittance is covered under an exemption list, then only the Part D section of the Form is to be submitted
If the remittance is less than Rs 5 lakh in a specific financial year, only form 15CA - Part A to be submitted
If the remittance exceeds Rs 5 lakh- Form 15CA - Part C and Form 15CB is to be submitted
If the remittance exceeds Rs 5 lakhs and a certificate under Section 195(2)/195 (3)/197 of the Income Tax is obtained, only Form 15CA- Part B is to be submitted.
I hope these points clearly answer when 15CA and 15CB is required.
You can fill out these forms by visiting the income tax portal that is
https://www.incometax.gov.in/iec/foportal/
This is what I can say to answer what is 15CA and 15CB.
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Pekhom
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2023-04-28T07:27:47+00:00 2023-04-28T18:49:33+00:00Comment
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