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Audit of Form 15CA and Form 15CB of Income Tax Act

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Form 15CA is used by a person for making a remittance (payment) to a non-resident or a foreign company. It is submitted online. However, in some cases, 15CB certificate is required from the chartered accountant before uploading the 15CA form online. In other words, Form 15CB is a certificate given by the chartered accountant which certifies the individual to upload Form 15CA online. Form 15CB includes payment details, nature and purpose of remittance, if any DTAA (Double tax avoidance agreement) is applicable, TDS rate & TDS deduction as per section 195 of the income tax act.

These certificates are needed by bank to make payment to Non-residents on your behalf. Details about 15CA & 15CB are given below –

  • If your remittance lies in the list of 28 items specified under rule37BB, you neither required a form 15CA nor a certificate from CA in form 15CB.
  • If your remittance does not exceed Rs.50000 in a single transaction & not more than Rs.250000 in a financial year. Only Form 15CA is to be submitted in this case.
  • Certificate in form 15CB is not required –
    1) If low TDS has to be deducted and a certificate is received under section 197 for it.
    2) Lower TDS has to be deducted on the order of the AO.

Except these 3 cases above, an individual making a remittance abroad has to take a CA certificate in form 15CB. A person can only submit form 15CA online after receiving the certificate from a Chartered Accountant.

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