Form 15CB: You have to give information about sending money abroad to the Income Tax Department. For this Form 15CB is used. This is a certificate. It requires the signature of a chartered accountant. This shows that tax has been paid on the money you are sending abroad.
new Delhi. If your family members or relatives live in another country and you have to send money to them for some work, then tax will also have to be paid on it. However, many people are not aware of the tax levied on sending money abroad. If you also want to send money to your family members or relatives outside India, then it is important to take care of some rules.
You have to give information about sending money abroad to the Income Tax Department. For this Form 15CB is used. Apart from this, many times people do not understand whether to send money abroad in Indian currency or according to foreign currency. However, if a Non-Resident Indian (NRI) sends you money, then there is no problem, but if you send money to someone abroad, then many rules have to be taken care of.
That’s why Form 15CB is necessary
Archit Gupta, Founder and CEO, Clear.in says that Form 15CB is a certificate. It requires the signature of a Chartered Accountant (CA). This shows that tax has been paid on the money you are sending abroad. However, Form 15CB is not required for an NRI remitting money for the maintenance of his family through the Liberalized Remittance Scheme of RBI. However, some banks demand Form 15CB.
There are two types of accounts for NRIs
Actually, there are two types of accounts for NRIs. One is NRE i.e. Non Resident External. In this, you can send money directly in pounds or any foreign currency. You can keep foreign currency in it. The second account is NRO ie Non Resident Ordinary. This account is opened by an Indian company and you can deposit money in it in Indian currency.
Know how much is the tax
TCS is to be paid at the rate of 5 per cent for remittances of more than Rs 7 lakhs abroad outside India. It will appear in your account in a few days. You can use it as a tax adjustment. You can also claim refund on this.
