Section 195 of the Income Tax Act, 1961, says that it is mandatory to deduct Income Tax from payments made to Non-Residents. This is where the concept of Form 15 CA and CB comes into existence. As per the Act and its allied rules, the person making payment/ remittance to Non – Resident holds the responsibility to furnish an undertaking (in form 15CA) attested by a Chartered Accountants Certificate in Form 15CB.
15CB is a Chartered Accountant (CA) Certificate for individuals who want to send funds/money from their NRO (Non-Resident Ordinary) Account to NRE (Non-Resident Rupee) Account net of applicable taxes (if any), and 15CA Form is a declaration of remitter (Individual).
Both these Certificates are given to the Bank’s RM for completing the Transfer of Funds.
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