Form 145 / 146
Form 15CA and Form 15CB — now formally Form 145 and Form 146 under the Income-tax Act, 2025 and the Income-tax Rules, 2026, which took effect from 1 April 2026 — are declarations that apply whenever a person in India remits money abroad to a non-resident, and they exist to help the tax department track whether tax has been correctly withheld on that outward payment before the bank releases the funds. Not every remittance needs both forms — the rules split remittances into Parts A, B, C and D depending on whether the amount and aggregate remittances in the financial year cross ₹5 lakh (this threshold is unchanged under the new regime), whether the payment is taxable at all, and whether it falls on the specified exempt list under Rule 220(3) of the Income-tax Rules, 2026 (the successor to the old Rule 37BB, now covering 33 categories — expanded from 28 — including certain travel, education, and gift remittances) that are exempted from filing altogether. Where the remittance is taxable and exceeds the threshold without a lower/nil-deduction certificate from the Assessing Officer under Section 395 (the successor to old Section 197), a practising Chartered Accountant must first certify Form 146 before Form 145 (Part C) can be filed on the income tax e-filing portal. Authorised dealer banks insist on a valid, portal-generated acknowledgement number before they will process a SWIFT transfer, so treat this as a pre-payment step rather than a post-payment formality; remittances initiated before 1 April 2026 that were filed under the legacy Form 15CA/15CB naming remain valid compliance records, but any remittance from 1 April 2026 onward must be filed as Form 145/146. Newly registered exporters, importers, and companies making their first foreign payment for royalties, professional fees, dividends, or loan repayments are the group most likely to trip over this requirement — and most likely to be tripped up by the form renumbering itself — since the obligation attaches to the payer, not the recipient.
Before you start
- Have the payee's full name, address, country of residence, and PAN (or a reason PAN is not available) ready before you start the online form.
- Determine which Part applies — A, B, C, or D — under Rule 220(3) of the Income-tax Rules, 2026 (successor to old Rule 37BB), based on remittance amount, taxability, and whether the payment is on the specified exempt list.
- Register on the Income Tax e-filing portal as a taxpayer and, separately, add and pre-validate your practising CA if Form 146 (formerly Form 15CB) certification is required.
- Gather the remittance invoice, underlying contract or agreement, and any TDS-related documents such as a Section 395 lower-deduction certificate (formerly issued under Section 195(2)/197, now on Form 128, which replaced old Form 13), if one has been obtained.
- Confirm the payee's Tax Residency Certificate (TRC) and Form 10F if you plan to apply a lower withholding rate under a Double Taxation Avoidance Agreement — confirm the current form number with your CA, since several supporting forms were also renumbered under the Income-tax Rules, 2026.
- Have your active Digital Signature Certificate (DSC) ready — DSC is mandatory for the CA's Form 146 certification, and for Form 145 itself where you file as a company or are otherwise required to e-verify by DSC; other individual remitters may instead use an Electronic Verification Code (EVC).
- Check your bank's specific SWIFT/remittance cut-off timelines, as most authorised dealers need the Form 145/146 acknowledgement uploaded well before the value date.
- Reconcile prior remittances made to the same or other non-residents during the financial year so the ₹5 lakh aggregation threshold is assessed correctly.
Step-by-step
Classify the remittance under Rule 220(3) (formerly Rule 37BB)
Start by working out which Part of Form 145 applies:
- Part D — the payment is on the Rule 220(3) specified list (33 categories, including certain travel, gift, and education remittances) and is exempt from Form 145/146 filing entirely.
- Part A — the remittance (or aggregate remittances to that payee in the FY) does not exceed ₹5 lakh and is otherwise taxable.
- Part B — a certificate/order under Section 393(2) or 395 (formerly Section 195(2)/195(3)/197) has already been obtained from the Assessing Officer for a lower or nil deduction.
- Part C — the remittance exceeds ₹5 lakh, is taxable, and none of the above applies — this is the Part that requires a CA-certified Form 146 first.
Getting this classification wrong is the single biggest source of rejected filings, so document your reasoning.
Engage a practising Chartered Accountant (Part C cases)
If the remittance falls under Part C, engage a CA who holds a valid Certificate of Practice and is registered on the e-filing portal. Share the invoice, contract, payee tax residency documents, and details of the nature of remittance so the CA can assess taxability under the Income-tax Act, 2025 and any applicable DTAA, and certify Form 146 (formerly Form 15CB).
CA determines taxability and computes withholding
The CA examines the nature of income in the payee's hands, applies the relevant DTAA rate (where a valid TRC and Form 10F are on file) or the domestic rate under Section 393(2) (formerly Section 195), and arrives at the tax to be withheld, if any. This assessment is the technical core of Form 146 and is what the bank and the tax department rely on.
CA prepares and digitally signs Form 146 (formerly Form 15CB)
The CA logs into the e-filing portal, fills in Form 146 with the remittance particulars, tax computation, and DTAA analysis, and submits it using their DSC. Once submitted, a unique acknowledgement number is generated that the remitter will reference in Form 145.
File Form 145 (formerly Form 15CA) on the e-filing portal
Log in to the Income Tax e-filing portal as the remitter, select the correct Part (A, B, or C) based on the classification above, and enter the payee's details, remittance amount and purpose code, and the Form 146 acknowledgement number where applicable. Submit using your own DSC or EVC (DSC is mandatory for companies and tax-audit cases), and download the generated acknowledgement.
Submit both acknowledgements to your bank
Upload the Form 145 acknowledgement (and Form 146 acknowledgement, if applicable) to your authorised dealer bank through their remittance portal or branch process, along with the invoice and any FEMA-related declarations (such as an A2 form) the bank requires for the specific purpose code.
Bank processes the SWIFT transfer
Once the bank's compliance team validates the documents, it processes the outward remittance via SWIFT. Retain the bank's outward remittance certificate or SWIFT confirmation for your records — this is your proof the remittance actually matched the declared Form 145/146 details.
Record the transaction in your compliance register
Log the remittance date, amount, payee, Part filed, and acknowledgement numbers in an internal register. This makes annual aggregation tracking and future audits materially faster, particularly where multiple small remittances to the same vendor could cumulatively cross the ₹5 lakh threshold.
Reconcile with TDS returns, if tax was withheld
Where tax was deducted at source on the remittance, ensure it is reported in the relevant quarterly TDS return — Form 144 (formerly Form 27Q) — and that a TDS certificate — Form 131 (formerly Form 16A) — is issued to the non-resident payee, since mismatches between Form 145/146 data and TDS filings are a known trigger for departmental queries.
Retain documentation for the statutory period
Keep Form 145, Form 146, the underlying invoice/contract, TRC/Form 10F, bank remittance confirmation, and (where applicable) the lower-deduction certificate for at least the period prescribed for retention of income tax records — practically, six to eight years is a safe working standard given the assessment reopening window.
Track annual aggregation for future remittances
Before any subsequent remittance to the same or a related non-resident payee in the same financial year, re-check the cumulative total against the ₹5 lakh threshold so you classify the next payment under the correct Part rather than defaulting to the same Part used previously.
Common mistakes to avoid
- Filing Form 145 Part A for a remittance that actually crosses the ₹5 lakh aggregate threshold once earlier payments in the FY are added in.
- Treating a payment on the Rule 220(3) specified exempt list as if it still needs Form 145/146, wasting time and CA fees unnecessarily.
- Submitting inaccurate payee PAN, address, or currency codes, which causes the bank's system to reject the remittance at the last step.
- Initiating the SWIFT transfer before the Form 145/146 acknowledgement is generated, forcing a delayed or reversed payment.
- Relying on an expired or missing Tax Residency Certificate and Form 10F, which invalidates the DTAA rate the CA applied in Form 146.
- Assuming Form 146 is required for every remittance above ₹5 lakh, even when a valid Section 395 lower-deduction order already covers it under Part B.
- Not reconciling Form 145/146 filings with the quarterly Form 144 (formerly Form 27Q) TDS return, leading to mismatched data that draws departmental scrutiny.
- Letting the CA's Digital Signature Certificate lapse mid-process, which blocks Form 146 submission right before a payment deadline.
- Continuing to reference or file the legacy Form 15CA/15CB naming for remittances made on or after 1 April 2026, when the Income-tax Act, 2025 requires Form 145/146 for those payments.
Frequently asked questions
Is Form 146 (formerly Form 15CB) mandatory for all foreign remittances above ₹5 lakh?
No. Form 146 is required only under Part C — when the remittance exceeds ₹5 lakh in the financial year, is taxable, and there is no existing lower/nil-deduction certificate from the Assessing Officer under Section 395 (formerly Section 195(2)/195(3)/197). If such a certificate exists, the remittance falls under Part B and no CA certificate is needed. If the payment is on the Rule 220(3) specified exempt list, neither form is required at all.
What is the ₹5 lakh threshold based on — a single remittance or the whole year?
It is based on the aggregate of remittances made to that payee (or under that transaction category) during the financial year, not just the single payment being processed. A series of smaller remittances that together cross ₹5 lakh moves the filing from Part A to Part C, so cumulative tracking matters. This threshold carried over unchanged when the forms were renumbered to 145/146.
Which payments are exempt from Form 145/146 entirely?
Rule 220(3) of the Income-tax Rules, 2026 (successor to old Rule 37BB) maintains a specified list of 33 payment categories — expanded from 28 under the earlier rule — including certain travel expenses, gifts, donations, and some education-related and import-related remittances, that do not require either form regardless of amount. Because this list is amended periodically, confirm the current version with your CA before assuming a payment is exempt.
What happens if I file Form 145/146 with incorrect or incomplete information?
Section 462 of the Income-tax Act, 2025 (the successor to old Section 271-I) provides for a penalty of up to ₹1 lakh per default for furnishing inaccurate or incomplete particulars, in addition to the practical risk that your bank rejects or delays the remittance. Relief is available under the reasonable-cause provisions of the Act if the default was not deliberate. Persistent inaccuracies can also trigger closer scrutiny of the payer during assessment.
Can I file Form 146 myself without a CA?
No. Form 146 must be prepared and digitally signed by a practising Chartered Accountant registered on the e-filing portal. A remitter cannot self-certify this form, and banks will not accept it without a valid CA DSC on the submission.
Do I need a fresh Form 146 for every remittance to the same payee?
Generally yes — each remittance under Part C requires its own Form 146 assessment and acknowledgement number, since taxability, applicable DTAA rate, and the cumulative aggregate can change with each payment. Some banks may accept a consolidated CA certificate for a series of near-identical scheduled payments; confirm this with your bank's compliance desk.
What documents does the CA need to certify Form 146?
Typically the invoice or agreement underlying the remittance, the payee's Tax Residency Certificate and Form 10F (if a DTAA rate is claimed), PAN details of both parties where available, and any prior lower-deduction certificate. The CA uses these to determine taxability and the correct withholding rate.
How long does the whole Form 145/146 (formerly Form 15CA/15CB) process typically take?
For a straightforward Part C remittance with all documents ready, CA certification and portal filing can often be completed within one to three business days. Complex cases involving DTAA interpretation, missing TRC documentation, or first-time payee onboarding with the bank can take longer.
Does the recipient (non-resident) need to do anything for Form 145/146?
The recipient typically needs to provide a Tax Residency Certificate and Form 10F if a DTAA benefit is being claimed, and their PAN if they have one. Beyond supplying these documents, the compliance obligation and filing responsibility rest with the Indian remitter, not the overseas payee.
What if my bank asks for documents beyond Form 145/146?
Authorised dealer banks commonly also require an A2 form (FEMA declaration), the underlying invoice, and sometimes a Letter of Undertaking or Board resolution for corporate remitters, depending on the purpose code (RBI code) of the transfer. Ask your bank's forex/trade desk for their specific checklist before initiating the payment.
Can Form 145/146 be filed for remittances already made, or only before payment?
The forms are designed as a pre-remittance compliance step and banks require the acknowledgement before processing the SWIFT transfer. Filing after the fact does not cure a bank's refusal to process an undeclared remittance and can complicate matters if the transfer was routed through non-standard channels.
I keep seeing this referred to as Form 15CA/15CB — has it actually changed?
Yes. Effective 1 April 2026, the Income-tax Act, 2025 and the accompanying Income-tax Rules, 2026 renumbered Form 15CA as Form 145 and Form 15CB as Form 146 as part of a wider renumbering of income tax forms and sections. The underlying compliance obligation, the ₹5 lakh threshold, and the Part A–D structure carried over largely unchanged. Filings already made under the old Form 15CA/15CB naming before 1 April 2026 remain valid; any remittance from that date onward must be filed under the new form numbers. Because many practitioners, banks, and older reference material still use the old names, confirm with your CA which portal form applies to your remittance date.
Does PNPC Global handle both Form 145 and Form 146?
Yes. Our team classifies the remittance under the correct Part of Form 145 (formerly Form 15CA), prepares and CA-certifies Form 146 (formerly Form 15CB) where required, files on the e-filing portal, and coordinates directly with your bank's compliance desk — for clients transacting between India and UAE as well as other jurisdictions.
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