Insights · Income-tax Act 2025
Form 145 and Form 146: The New Form 15CA and 15CB for Foreign Remittances
From 1 April 2026 the foreign remittance forms have new numbers under the Income-tax Act, 2025. What changed, which part applies, and the errors that hold up payments.
Form 145 and Form 146 are the new numbers for Form 15CA and Form 15CB. They apply to payments to non-residents made on or after 1 April 2026, when the Income-tax Act, 2025 and the Income-tax Rules, 2026 came into force. Form 145 is the remitter’s online declaration. Form 146 is the chartered accountant’s certificate that supports it. Banks will not process most foreign remittances without them.
What changed and what did not
- Form 15CA is now Form 145; Form 15CB is now Form 146
- The reporting obligation moved from section 195(6) of the 1961 Act to section 397(3)(d) of the 2025 Act
- Withholding on non-resident payments moved from section 195 to section 393(2)
- The purpose, the four-part structure and the Rs 5 lakh threshold are carried forward
- Remittances made up to 31 March 2026 remain under the old forms and sections
The Income Tax Department confirms the renumbering in its FAQs on the transition to the 2025 Act.
Which part of Form 145 applies
| Part | When it applies | CA certificate needed |
|---|---|---|
| Part A | Payment is chargeable to tax and the payment, or the aggregate of such payments in the year, does not exceed Rs 5 lakh | No |
| Part B | Chargeable, above Rs 5 lakh, and an order or certificate from the Assessing Officer fixes the tax to be deducted | No |
| Part C | Chargeable, above Rs 5 lakh, with no such order | Yes, Form 146 |
| Part D | Payment is not chargeable to tax in India | No |
No form is needed for remittances by individuals that do not require Reserve Bank approval under the Liberalised Remittance Scheme, or for remittances whose purpose falls in the specified list of exempt categories, which covers items such as imports of goods, travel, and certain investments abroad. Banks often ask for a declaration confirming why the form is not required.
What the chartered accountant certifies in Form 146
The certificate is an examination of the transaction, not a formality. The accountant records:
- the nature of the payment and how it is characterised: royalty, fees for technical services, interest, business income, performance income and so on
- whether it is chargeable under Indian domestic law
- whether a tax treaty applies, which article, and the treaty rate
- whether the payee has furnished a tax residency certificate and the prescribed treaty information form
- the rate and amount of tax deducted, including grossing up where the payer bears the tax
The accountant will want the agreement, invoices, the payee’s tax residency certificate, the treaty form, a no permanent establishment declaration where relevant, PAN if available and the TDS challan. Missing treaty documents are the most common reason certificates are issued at the higher domestic rate.
The filing sequence
- Determine chargeability and the rate under section 393(2) read with the treaty.
- Deduct the tax at the earlier of credit or payment and deposit it.
- The accountant uploads Form 146 on the e-filing portal and it is assigned to the remitter.
- The remitter accepts it and files Form 145 Part C, quoting the Form 146 acknowledgement number.
- The remitter submits the Form 145 acknowledgement to the bank with the remittance request.
- The bank reports remittances to the department, and the TDS is reported in the quarterly non-resident statement.
Common errors
- Filing Part D on the basis that the payee has no permanent establishment, when the payment is a royalty, technical fee or performance income taxable without one
- Applying the treaty rate without a valid tax residency certificate for the period
- Ignoring grossing up where the contract is net of Indian tax
- Treating reimbursements as outside the form without checking whether they are part of the consideration
- Splitting remittances to stay below Rs 5 lakh, when the limit is an aggregate for the year
- Using old form numbers and old section references in agreements and bank letters after 1 April 2026
Penalty and exposure
Failure to furnish the information, or furnishing inaccurate information, attracts a penalty of Rs 1 lakh. The larger exposure is the tax itself. If the payment was chargeable and tax was not deducted, the payer is treated as an assessee in default, pays interest, and can lose the deduction for the expense.
For how the underlying withholding rule now works, see section 393: TDS on payments to non-residents. Our international taxation team issues Form 146 certificates and reviews recurring remittances such as software, royalty, management fee and artist payments.