Foreign Remittance

[CA Rachit Agarwal]

I want to know whether every remittance would be accompanies by Form 15CA and 15CB?

or requirements of Form 15CA and 15CB will only be required whether there are deduction of TDS pursuant to Section 195?

[CAGOPALJI AGRAWAL]

Dear Rachitji,

As per statute, these forms need to be issued only in case income of the recepient is chargeable to tax but practically, the bankers are asking for these forms invariably even for students getting remittance from parents for their educational/other expenses.

AI Summary

Form 15CA and 15CB requirement applies when remittance income is chargeable to tax, though banks often request them. Forms 15CA and 15CB are required by statute only where the remittance produces income chargeable to tax and triggers withholding obligations under Section 195, but banks commonly insist on these certificates even for non taxable transfers such as parental support for students.