Mistakes in Form 15CA/15CB can lead to heavy penalties, tax disallowances

Mistakes in Form 15CA/15CB can lead to heavy penalties, tax disallowances

Individuals consider Form 15CA/15CB just as a formality; however, it’s actually very significant for following tax rules and FEMA (foreign exchange) laws. Mistakes in filing or understanding 15CA/15CB forms can result in penalties, tax disallowances, scrutiny and Departmental audits.

What is Form 15CA and 15CB?

• Form 15CA is a declaration made, wherever an individual is sending money internationally, as to whether tax must be deducted with the payment being sent.
• Form 15CB is a form of certificate issued by a Chartered Accountant (CA) which is required when the foreign payment to be sent is taxable and in case it exceeds the limit of Rs. 5 lakh, certifying the appropriate tax deduction.

These forms are compulsory for various foreign remittances and are required to be submitted to the bank before the processing of payment.

Here are the common issues associated with Form 15CA/15CB: