# Form 145 and 146 (Old 15CA and 15CB) for Foreign Remittances 2026

> Source: https://krystal7.com/insights/form-15ca-and-15cb-requirements-guide-2026
> Publisher: Krystal7 Consultants (Krystal7 Innovations Private Limited), Gurugram, India
> Author: CA Nandini
> Published: 23 Jul 2026; updated 01 Oct 2026
> Summary: From 1 Apr 2026, Form 145 replaces Form 15CA and Form 146 replaces 15CB, with a CA certificate for taxable sums above INR 5,00,000 a year.

*Written by CA Nandini, Krystal7 Consultants. Last updated 27 September 2026.*

**From 1 Apr 2026, Form 145 replaces Form 15CA and Form 146 replaces Form 15CB. Section 397(3)(d) of the Income Tax Act, 2025 and rule 220 of the Income Tax Rules, 2026 govern them. File Form 145 before each payment to a non resident. Use Part A for taxable sums up to INR 5,00,000 in the tax year and Part B with a section 395 certificate. Use Part C with a chartered accountant's Form 146, and Part D for sums not taxable in India.**

This page explains each part of Form 145, the rule 220 exemptions, treaty claims, bank checks, portal filing and penalties. It ends with worked figures, common mistakes, a checklist and 18 FAQs.

## What are Form 145 and Form 146, and what happened to Forms 15CA and 15CB?

Form 145 is the information a payer files on the income tax portal before paying a non resident or a foreign company. Form 146 is the chartered accountant's certificate behind Part C of Form 145. They replaced Forms 15CA and 15CB on 1 Apr 2026, when the Income Tax Act, 2025 and the Income Tax Rules, 2026 came into force.

The legal base moved with the forms. The CBDT transition FAQ (Q4.23) names section 397(3)(d) of the Income Tax Act, 2025 as the successor to section 195(6). That clause covers "any sum, whether or not chargeable" paid to a non resident or a foreign company. Rule 220, the successor to rule 37BB, sets the four parts, the INR 5,00,000 test and the exemptions.

The guidance note on Form 145 calls it an event based form. You file one for each remittance, with no cap on the number in a year. The note says taxpayers filed about 44 to 45 lakh Forms 15CA a year, on average, over the past five years. The Form 145 FAQs add that the data feeds the department's risk systems for verification by Assessing Officers.

| Item | Income Tax Act, 1961 regime | Income Tax Act, 2025 regime |
|---|---|---|
| Information before paying a non resident | Form 15CA | Form 145 |
| Accountant's certificate | Form 15CB | Form 146 |
| Section that requires the information | Section 195(6) | Section 397(3)(d) |
| Rule that prescribes the forms | Rule 37BB, Income Tax Rules, 1962 | Rule 220, Income Tax Rules, 2026 |
| Withholding on payments to non residents | Section 195 | Section 393(2), table serial 17 |
| Lower or nil deduction certificate for the payee | Section 197, Form 13 | Section 395(1), Form 128 |
| Payer's application on the taxable proportion | Section 195(2) | Section 395(2) |
| Grossing up where the payer bears the tax | Section 195A | Section 393(10) |
| Treaty relief and residency information | Section 90, Form 10F | Section 159, Form 41 (rule 75) |
| Authorised dealer's quarterly statement | Form 15CC | Form 147 |
| IFSC unit's quarterly statement | Form 15CD | Form 148 |
| Penalty on the remitter | Section 271-I, INR 1,00,000 | Section 462, INR 1,00,000 |
| Penalty on the accountant | Section 271J, INR 10,000 per certificate | Section 463, INR 10,000 per certificate |
| Expense disallowed if TDS is missed | Section 40(a)(i) | Section 35(b)(ii) |
| Period for the INR 5,00,000 test | Financial year | Tax year |

Sources: transition FAQ Q4.23; Rules and section navigators; Form 145 and 146 guidance notes (read 27 Sep 2026).

Banks still say "15CA and 15CB". Read those names as Forms 145 and 146 for any money sent from 1 Apr 2026. Our overview of the [Income Tax Act, 2025 changes for foreign owned companies](/insights/income-tax-act-2025-changes-for-foreign-owned-companies) maps the other renumbered forms.

## When does each part of Form 145 apply?

Form 145 has four parts. Part A covers a taxable payment while the year's payments stay at or below INR 5,00,000. Part B covers larger taxable payments backed by a certificate or order under section 395. Part C covers larger taxable payments with a Form 146. Part D covers sums that are not taxable in India.

| Part | Taxable in India? | Amount test in the tax year | Supporting document | Form 146 needed? |
|---|---|---|---|---|
| Part A | Yes | Payment or aggregate does not exceed INR 5,00,000 | None | No |
| Part B | Yes | Payment or aggregate exceeds INR 5,00,000 | Certificate or order under section 395(1) or 395(2) | No |
| Part C | Yes | Payment or aggregate exceeds INR 5,00,000 | Form 146 from an accountant | Yes |
| Part D | No | No amount test | None prescribed | No |

Source: rule 220(1) and (2), Income Tax Rules, 2026; Form 145 FAQs, question 6.

Rule 220(1) tests "the amount of payment or the aggregate of such payments" made during the tax year. The tax year runs from 1 April to 31 March. A total of exactly INR 5,00,000 still sits in Part A.

The rule does not say whether "such payments" means payments to one remittee or all foreign payments. The Form 145 guidance note and FAQs do not settle it either (read 27 Sep 2026). On our reading, you count payments to the same remittee in the tax year. The cautious route is to count all your taxable foreign payments, which moves you to Part C sooner.

Rule 220(2) sends "any sum which is not chargeable under the Act" to Part D. The rule keeps no separate list of Part D payments. Parts B and C no longer overlap: the guidance note says Part C dropped its Assessing Officer certificate section.

The filer is the "person responsible for paying". For a subsidiary, that is the Indian company, acting through a director or authorised signatory.

## When do you need a Form 146 accountant certificate?

You need Form 146 only for Part C. That means a payment taxable in India, above INR 5,00,000 in the tax year, with no certificate or order under section 395. Parts A, B and D need no Form 146. One Form 146 supports one Form 145 only (Form 146 FAQs, question 16), so each Part C remittance needs its own certificate.

The signer must be an "accountant" under section 515(3)(b) of the Income Tax Act, 2025. That is a chartered accountant holding a certificate of practice under the Chartered Accountants Act, 1949. Rule 220(1)(c) points to this definition. For a company, the definition excludes anyone not eligible to be its auditor under section 141(3) of the Companies Act, 2013. Section 141(3)(b) bars "an officer or employee of the company". On our reading, an in house chartered accountant therefore cannot sign the company's Form 146.

The Form 146 guidance note lists what the accountant certifies:

1. Whether the sum is chargeable under sections 5 and 9 of the Income Tax Act, 2025.
2. The treaty article relied on, and whether a tax residency certificate (TRC) is on file.
3. For business income, why it escapes Indian tax, such as no permanent establishment (PE).
4. The TDS rate, and the grossed up amount under section 393(10) where the payer bears the tax.
5. Capital gains details, in a new table of acquisition date, sale date and consideration.
6. The Form 41 filed by the payee.

The accountant signs with a digital signature certificate (DSC) registered on the portal. The guidance note says UDIN is "now mandatory". The Form 146 user manual calls the field "currently optional", with validation after submission. We generate a UDIN for every Form 146.

## Which form applies to money sent before and after 1 Apr 2026?

The remittance date decides the form. Money sent from 1 Apr 2026 needs Forms 145 and 146 (CBDT transition FAQ Q4.25). An old Form 15CA or 15CB stays valid only if the money left by 31 Mar 2026 and by the form's stated date (Q4.24). The tax on the income still follows the year it accrued.

| Situation | Form to use | Tax law for the income | Source |
|---|---|---|---|
| Form 15CA filed and money sent by 31 Mar 2026 | Forms 15CA and 15CB stay valid | Income Tax Act, 1961 | Q4.24 |
| Form 15CA filed in March 2026, money sent in April 2026 | File Form 145 (and 146) afresh | Year of accrual | Q4.24, Q4.25, Q4.27 |
| Liability accrued February 2026, money sent April 2026 | Forms 145 and 146 | Income Tax Act, 1961 | Q4.27 |
| TDS deducted on credit in March 2026, paid in April 2026 | Forms 145 and 146 | No second deduction on payment | Q2.10 |
| Section 197 certificate for projected receipts of tax year 2026-27 | Form 145, Part B | Certificate stays valid | Q2.12 |
| Money sent from 1 Apr 2026 for a 2026-27 liability | Forms 145 and 146 | Income Tax Act, 2025 | Q4.25 |

Source: CBDT, FAQs on Interplay and Transition (updated version), April 2026; portal Income Tax Forms FAQs, questions 20 to 23.

Q4.24 adds that a form not used by its proposed remittance date needs fresh forms before the payment. Q4.27 settles the mixed case. The procedural requirement "follows the law in force on the date of remittance". Taxability "is governed by the Act applicable to the year of accrual". So a Form 146 for an April 2026 payment on a February 2026 invoice analyses tax under the 1961 Act.

Q2.10 covers the TDS. If you deducted tax under the 1961 Act when you credited the sum, you do not deduct again on payment. Show that deduction in Form 145.

## Which payments need no Form 145 under rule 220?

Rule 220(3) excuses three kinds of remittance, but only when the sum is not chargeable to tax in India. They are LRS remittances by individuals, remittances by an IFSC unit, and 33 listed RBI purpose codes. A taxable payment still needs Form 145, even under a listed code.

The opening words of rule 220(3) set that condition. No information is required "for any sum that is not chargeable under the Act", and only if one of three limbs applies:

1. An individual's remittance that needs no prior RBI approval. The test is section 5 of FEMA read with Schedule III to the Foreign Exchange Management (Current Account Transactions) Rules, 2000.
2. A remittance by a unit in an International Financial Services Centre.
3. A remittance whose nature matches the specified list in rule 220.

| Group | RBI purpose codes | What they cover |
|---|---|---|
| Indian investment abroad | S0001, S0002, S0003, S0004, S0005, S0011 | Equity, debt securities, branches and subsidiaries, associates, real estate abroad, loans to non residents |
| Imports | S0101, S0102, S0103, S0104, S0190 | Advance for imports, import settlement, imports by diplomatic missions, intermediary trade, imports below INR 5,00,000 |
| Transport operators | S0202, S0208, S0212 | Operating expenses of Indian shipping and airline companies abroad, airline passage bookings |
| Travel | S0301, S0302, S0303, S0304, S0305 | Business travel, basic travel quota, pilgrimage, medical treatment, education |
| Postal | S0401 | Postal services |
| Projects abroad | S0501 | Construction of projects abroad by Indian companies |
| Insurance | S0602 | Freight insurance on imports and exports |
| Offices and embassies | S1011, S1201, S1202 | Maintenance of offices abroad and Indian embassies, remittances by foreign embassies in India |
| Personal transfers and donations | S1301, S1302, S1303, S1304, S1305 | Family maintenance, gifts, donations to religious and charitable bodies, government grants, contributions to international institutions |
| Taxes and export refunds | S1306, S1501 | Payment or refund of taxes, refunds or rebates on exports |
| Bidding | S1503 | Payments by residents for international bidding |

Source: rule 220(3), Income Tax Rules, 2026, specified list of 33 entries, read 27 Sep 2026.

Dividends, royalties, service fees, interest and buy back proceeds are not on the list. So a foreign owned subsidiary files Form 145 for almost every payment to its parent.

The 1961 rules had an equivalent list in rule 37BB. The IFSC unit exemption and Form 15CD arrived through Notification No. 89/2023, effective 1 Jan 2024. Rule 220 carries both forward, with Form 148 in place of Form 15CD.

## Which part applies to common payments from an Indian subsidiary to its foreign parent?

Most payments from a subsidiary to its parent are taxable in India. They go in Part C with a Form 146 once the year's total passes INR 5,00,000. The main exceptions are loan principal and imports under listed purpose codes. A pure cost reimbursement can fall in Part D if the facts support it.

| Payment to the parent or a group company | Usually taxable in India? | Form 145 part above INR 5,00,000 a year | Form 146? |
|---|---|---|---|
| Dividend | Yes, section 207(1) at 20% or the treaty rate | Part C, or Part B with a section 395 certificate | Yes for Part C |
| Royalty for brand, software or technology | Yes, section 207(2) at 20% or the treaty rate | Part C | Yes |
| Management, technical or IT service fee | Depends on the treaty definition and on PE | Part C if taxable or treaty relieved; Part D if the Act does not charge it | Yes for Part C |
| Reimbursement of third party costs at cost | Often not income, if no markup and no service element | Part D, with a written analysis on file | No |
| Recharge of the parent's own staff or systems costs | Usually a payment for services | Part C | Yes |
| Interest on a loan or ECB | Yes, section 207(1) at 20% on foreign currency debt, or the treaty rate | Part C | Yes |
| Repayment of loan principal | No, principal is not income | Part D | No |
| Imported goods under S0101 or S0102 | Not taxable where the sale creates no taxable presence in India | No Form 145 | No |
| Buy back or capital reduction proceeds | Yes, capital gains | Part C | Yes, with the capital gains table |

Sources: sections 9, 207 and 393(2) of the Income Tax Act, 2025; rule 220; Form 146 guidance note. The "usually" column is our practical view and turns on the contract and the treaty.

Dividends have their own timing and rate rules. Our guide to a [dividend from an Indian subsidiary to its foreign parent](/insights/dividend-from-indian-subsidiary-to-foreign-parent) covers them. Our guide to [repatriation of profits to a foreign parent](/insights/repatriation-of-profits-from-india-to-a-foreign-parent-the-2026-strategic-guide) compares the other routes.

Service fees need the closest reading. Treaties define technical or included services differently, and some tax a service only if it "makes available" know how. Where the Act charges the fee but the treaty relieves it, we file Part C. Form 146 has a treaty section for exactly this.

Reimbursements cause the most bank queries. A third party invoice passed on at cost is often not the parent's income. A recharge of the parent's own salaries or software usually pays for a service. Keep the third party invoices and the allocation workings.

Form 146 does not test the arm's length price of a related party payment. That test sits in the transfer pricing report, now Form 48 (old Form 3CEB). Our [transfer pricing advisory](/services/transfer-pricing-advisory.html) team reviews both for group payments.

## How do Forms 145 and 146 work with a treaty claim, the TRC and Form 41?

A treaty rate needs three things before the remittance. The parent needs a TRC from its home tax authority and a Form 41 filed on the portal. You need a Form 146 that names the treaty article and rate. Without them, deduct at the rate under the Act.

Section 159(4) of the Income Tax Act, 2025 lets a non resident use the Act or the treaty, whichever is more beneficial. Section 159(8)(a) makes a TRC a condition of that relief. Section 159(8)(b) adds "such other documents and information, as may be prescribed", which is Form 41 (old Form 10F) under rule 75.

The Form 41 guidance note sets the mechanics:

1. The non resident files Form 41 electronically, once in a tax year, when it claims treaty benefits.
2. It uploads a TRC that covers the relevant year.
3. A non resident without a PAN can register in a separate portal category and verify by OTP.
4. Without the TRC and Form 41, "the DTAA benefit is not available".

Treaties add their own conditions. The India US treaty gives its royalty rate only when "the beneficial owner" is a US resident. Article 12(2) then caps royalties and fees for included services at 15 percent, and equipment royalties at 10 percent. The accountant should record beneficial ownership in Form 146.

On a treaty rate, we do not add surcharge and cess. That practice rests on tribunal rulings, which treat them as part of the tax the treaty caps, and not on the text of the Act. We have Form 146 state the article and rate applied.

Form 145 does not need the payee's PAN; the FAQs ask for its tax identification number (TIN) instead. TDS is a separate test. Without a PAN, section 397(2)(b)(i) sets the higher of the applicable rate and 20 percent. Section 397(2)(c) and rule 217 relieve a non resident that gives its contact details, address, TRC and TIN.

If the TRC arrives late, deduct at the rate under the Act and file Part C on that basis. The parent claims the excess back in its Indian return. Our guide to [TDS on payments to non residents](/insights/tds-on-payments-to-non-residents) sets out the rates.

## How does a Form 128 certificate or a section 395(2) order change the filing?

It moves the filing to Part B and removes the need for Form 146. The payee can apply under section 395(1) in Form 128 for a lower or nil deduction certificate. The payer can apply under section 395(2) for an order on the taxable proportion. Either document supports Part B.

Section 395(2) applies where the payer "considers that the whole of such sum would not be chargeable in the case of the recipient". The Assessing Officer then fixes "the appropriate proportion of the sum chargeable to tax". This was section 195(2) under the 1961 Act.

Part B asks for the certificate number, date, section, rate and the "amount as per certificate". We track each payment against that amount. Once it is used up, the next payment needs a fresh certificate or Part C.

A section 197 certificate issued for projected receipts of tax year 2026-27 stays valid from 1 Apr 2026 (Q2.12). One that covered only FY 2025-26 does not carry over. Our note on [lower or nil TDS certificates in Form 128](/insights/lower-tds-certificate-non-residents-form-128) covers the application.

## What does the AD bank check before it releases the money?

The authorised dealer (AD) bank will not remit without the Form 145 acknowledgement, and Form 146 where Part C applies. Rule 220(4) requires the payer to give the bank a copy before remitting. The bank also runs its own FEMA checks, so its list is often longer than the tax rule.

Section 10(5) of FEMA requires the bank to obtain information that will "reasonably satisfy him" that the transaction does not breach FEMA. RBI restated this in A.D. (M.A. Series) Circular No. 11 of 16 May 2000.

RBI's Master Direction on Miscellaneous (FED Master Direction No. 19/2015-16, updated 13 May 2026) adds that ADs "are required to comply with the requirement of the tax laws, as applicable".

The bank's side of rule 220 has three parts:

1. The bank keeps your Form 145 copy, and a tax authority may call for it under rule 220(5).
2. The bank files Form 147 (old Form 15CC) each quarter, within 15 days from the quarter end (rule 220(6)). An IFSC unit files Form 148.
3. The bank holds an ITDREIN, its reporting entity number. Form 145 has an optional ITDREIN field, which the guidance note says helps cross verification with Form 147.

Form 145 also has a checkbox for when the remitting bank is the authorised dealer, so you do not enter its details twice. Part A now carries the 7 digit BSR code of the bank branch, a field Parts B, C and D already had. The guidance note links it to the challan identification number (CIN).

We see banks ask for more than the tax rule needs:

1. The bank's outward remittance application with the purpose code, often called Form A2.
2. The invoice and the agreement.
3. The Form 145 acknowledgement, and Form 146 for Part C.
4. The TDS challan, or the date of deduction.
5. For a dividend, the resolutions and proof of the parent's original FEMA reporting.

Match the purpose code, amount, currency and payee name across all these papers. A mismatch is the commonest reason a bank returns a file. A gap in the parent's FEMA reporting can stall a dividend, which our [FEMA compliance service](/services/fema-compliances.html) fixes before the payment date.

## How do you file Forms 145 and 146 on the income tax portal?

The payer files Form 145 from its own portal login. For Part C, the payer first assigns the chartered accountant, who files Form 146 with a DSC. The payer then enters the Form 146 acknowledgement number in Part C, checks the prefilled data, verifies and submits. The bank gets a copy before the remittance.

The steps follow the Form 145 and 146 user manuals and FAQs (read 27 Sep 2026):

1. Log in with the company's credentials. DSC is mandatory for TAN users; others can verify with DSC or an electronic verification code (EVC).
2. For Part C, assign the accountant under `My Account > Add CA`, entering the membership number and selecting Form No. 146.
3. The accountant opens `e-File > Income Tax Forms > File Income Tax Forms` and picks Form 146 under "Forms as per Income Tax Act 2025".
4. The accountant enters the company's PAN, fills the seven sections, adds the UDIN and signs with a DSC.
5. The company finds the filed Form 146 in its `Worklist`.
6. The company opens Form 145 under `e-File > Income Tax Forms > File Income Tax Forms`, chooses online mode and the tax year, and picks the part.
7. For Part C, the company enters the Form 146 acknowledgement number and checks the prefilled data. The Form 146 then shows as "Consumed".
8. The company previews, verifies and submits, and receives a transaction ID and acknowledgement number by email and SMS.
9. The company gives the bank a copy of Form 145, with Form 146 for Part C.

Neither form can be edited after submission. You can withdraw Form 145 within 7 days of submission. Withdrawing Part C also marks the linked Form 146 "Withdrawn", so the accountant must issue a new one. The accountant can withdraw an unused Form 146 within 7 days. A consumed Form 146 can be withdrawn only after the company withdraws its Form 145.

For many remittances, the offline utility helps. You fill each form, generate XML files and upload them as one zip, as the Form 145 guidance note describes.

## What documents should you collect before filing?

Collect the invoice, the agreement, the payee's details and the tax position before you call the bank. For Part C, the accountant also needs the TRC, Form 41 and the payee's declarations. For Part B, you need the section 395 certificate or order.

| Document or detail | Needed for | Who provides it | Why |
|---|---|---|---|
| Invoice and agreement | All parts | Payee and company | Nature of payment and chargeability |
| Payee's legal name, address, country and email | All parts | Payee | Remittee panel of Form 145 |
| Payee's PAN, or TIN if no PAN | All parts | Payee | Form 145 needs a TIN if there is no PAN |
| RBI purpose code | All parts | Company, with the bank | Must match the bank's application |
| TDS computation and challan details | Parts A, B and C | Company | TDS panel and BSR code field |
| Section 395 certificate or order | Part B | Payee or Assessing Officer | Certificate number, amount and rate |
| TRC and Form 41 acknowledgement | Treaty rate claims | Payee | Relief under section 159(8) |
| No PE and beneficial ownership declarations | Business income or treaty claims | Payee | Form 146 treaty section |
| Capital gains workings | Share sale or buy back | Company and payee | Form 146 capital gains table |
| Written tax analysis | Part D above INR 5,00,000 | Chartered accountant | Supports "not chargeable" for the bank |

Sources: Form 145 FAQs, question 7; Form 146 FAQs, question 9; Form 145 guidance note.

## How do Forms 145 and 146 fit with TDS deposit and Form 144?

Form 145 records the tax; it does not pay it. Deduct TDS on credit or payment, whichever is earlier, and deposit it by the 7th of the next month (30 April for March). Report it in the quarterly Form 144 and issue Form 131 to the payee. Forms 145 and 146 must go in before the money leaves India.

Section 393(2)(b) fixes the timing at credit "or at the time of its payment", whichever is earlier. Section 393(11) treats a credit to a suspense account as a credit to the payee. So a year end accrual for a parent's invoice triggers TDS even if you pay later.

| Step | Rule or section | Due date | Example: royalty credited 30 Sep 2026 |
|---|---|---|---|
| Deduct TDS | Section 393(2)(b) | On credit or payment, whichever is earlier | 30 Sep 2026 |
| Deposit TDS | Rule 218(2) | 7th of the next month; 30 April for March | 7 Oct 2026 |
| Obtain Form 146 and file Form 145 | Rule 220 | Before the remittance | Before 12 Oct 2026 |
| File Form 144 (old 27Q) | Section 397(3)(b), rule 219 | 31 Oct for July to September | 31 Oct 2026 |
| Issue Form 131 (old 16A) | Section 395(4), rule 215(1) | 15 days from the Form 144 due date | 15 Nov 2026 |

Sources: sections 393, 395 and 397; rules 215, 218, 219 and 220 of the Income Tax Rules, 2026.

A late Form 144 costs INR 200 a day under section 427, capped at the TDS. Section 398 charges interest of 1 percent a month for late deduction and 1.5 percent for late deposit.

## What happens if Form 145 or Form 146 is missing or wrong?

The Assessing Officer may levy INR 1,00,000 on the payer under section 462. The accountant faces INR 10,000 per certificate under section 463. If TDS was also missed, section 35(b)(ii) disallows the whole expense until the tax is paid. Section 448 adds a penalty equal to the tax not deducted.

Section 462 says the Assessing Officer "may impose a penalty of ₹ 100000". The Form 145 FAQs call it a penalty "of upto of ₹1 lakh". The Act states one figure, and "may" leaves the levy to the officer. Section 463 says the accountant "shall be liable to pay a penalty of ₹ 10000" for each report or certificate. The Form 146 FAQs say "upto". We plan on the full amounts.

Section 470 lists both sections 462 and 463. No penalty applies if the person proves reasonable cause. Keep the email trail, the bank's requests and the accountant's notes as that evidence.

| Failure | Section (Income Tax Act, 2025) | Consequence | Old section |
|---|---|---|---|
| Form 145 not filed, or inaccurate | 462 | Penalty of INR 1,00,000 | 271-I |
| Incorrect information in Form 146 | 463 | INR 10,000 per certificate, on the accountant | 271J |
| TDS not deducted, or not paid by the return due date | 35(b)(ii) | Whole sum disallowed until the tax is paid | 40(a)(i) |
| TDS not deducted | 448 | Penalty equal to the tax not deducted | 271C |
| Late deduction or deposit | 398 | Interest at 1% or 1.5% a month | 201(1A) |
| Late Form 144 | 427 | INR 200 a day, capped at the TDS | 234E |
| No Form 145 copy with the bank | Rule 220(4) | Bank holds the remittance | Rule 37BB |

Sources: sections 35, 398, 427, 448, 462, 463 and 470 of the Income Tax Act, 2025; section navigator on incometaxindia.gov.in.

The disallowance is harsher than for residents. A missed TDS on a resident loses 30 percent of the expense under section 35(b)(i). A missed TDS on a non resident loses 100 percent, restored only in the tax year the tax is paid.

## What changed in 2026

The Income Tax Rules, 2026 (G.S.R. 198(E), 20 Mar 2026) and the Income Tax Act, 2025 made these changes from 1 Apr 2026. The INR 5,00,000 test and the four parts carried over. The portal's forms FAQ says the new rules "retain similar thresholds as under the old Rules".

| Item | Until 31 Mar 2026 | From 1 Apr 2026 | Instrument |
|---|---|---|---|
| Form names | Forms 15CA, 15CB, 15CC, 15CD | Forms 145, 146, 147, 148 | Income Tax Rules, 2026, rule 220 |
| Section requiring the information | Section 195(6), Income Tax Act, 1961 | Section 397(3)(d), Income Tax Act, 2025 | Transition FAQ Q4.23 |
| Penalty sections | Sections 271-I and 271J | Sections 462 and 463, same amounts | Income Tax Act, 2025 |
| Period for the threshold | Financial year | Tax year | Rule 220(1) |
| Remittee without PAN | No mandatory TIN field | TIN mandatory | Form 145 guidance note |
| Part B and Part C | Part C also carried AO certificate details | Part C drops them; a certificate holder files Part B, with no Form 146 | Form 145 guidance note; portal forms FAQ, question 27 |
| Accountant identity in Part C | No accountant PAN, firm registration number or UDIN field | All three added | Form 145 guidance note |
| Capital gains | No separate table | Acquisition date, sale date and consideration | Form 146 guidance note |
| Bank link | No reporting entity field | Optional ITDREIN field and AD checkbox | Form 145 guidance note |
| Challan link | 7 digit BSR code field in Parts B, C and D only | BSR code field added to Part A as well | Form 145 guidance note |
| Aadhaar | Asked in the form | Removed | Form 145 guidance note |

Sources: Form 145 and 146 guidance notes; CBDT transition FAQ; Income Tax Rules, 2026 as notified on 20 Mar 2026.

## Worked example

IndiaCo Private Limited is wholly owned by a US parent. It pays the parent a brand and software royalty of INR 20,00,000 a quarter, INR 80,00,000 for tax year 2026-27. The parent holds a US TRC and has filed Form 41. IndiaCo pays tax under section 200 at 22 percent plus surcharge and cess, an effective 25.168 percent.

### A quarterly royalty to the US parent

IndiaCo credits INR 20,00,000 on 30 Sep 2026 and remits on 12 Oct 2026. The first quarter already took the year past INR 5,00,000, so the remittance needs Part C and a Form 146. Article 12(2) of the India US treaty caps the rate at 15 percent.

| Line | Treaty rate on file | No TRC or Form 41 | Contract says royalty is net of tax |
|---|---|---|---|
| Royalty agreed (INR) | 20,00,000 | 20,00,000 | 20,00,000 net |
| Rate applied | 15% | 20% plus 4% cess = 20.8% | 15%, grossed up under section 393(10) |
| Gross amount for TDS (INR) | 20,00,000 | 20,00,000 | 23,52,941 |
| TDS (INR) | 3,00,000 | 4,16,000 | 3,52,941 |
| Amount remitted to the parent (INR) | 17,00,000 | 15,84,000 | 20,00,000 |
| Cost to IndiaCo (INR) | 20,00,000 | 20,00,000 | 23,52,941 |
| Form 145 part | Part C with Form 146 | Part C with Form 146 | Part C with Form 146 |

Sources: section 207(2) (20 percent), India US DTAA Article 12(2) (15 percent), section 393(10). No surcharge applies because the year's royalty of INR 80,00,000 stays below INR 1,00,00,000.

INR 20,00,000 divided by 0.85 gives INR 23,52,941. Tax at 15 percent on that is INR 3,52,941, leaving INR 20,00,000 for the parent. Without a TRC and Form 41, IndiaCo withholds INR 1,16,000 more each quarter, or INR 4,64,000 a year. IndiaCo deposits the INR 3,00,000 by 7 Oct 2026 and files Form 145 before 12 Oct 2026.

### The INR 5,00,000 test across a year

IndiaCo also licenses artwork from a freelance designer who lives abroad. Assume the fees are royalty taxable in India, with no treaty claim on file. The table counts payments to this one payee, on our reading of rule 220(1).

| Date of remittance | Amount (INR) | Running total in tax year 2026-27 (INR) | Form 145 part | Form 146? |
|---|---|---|---|---|
| 15 May 2026 | 1,80,000 | 1,80,000 | Part A | No |
| 20 Aug 2026 | 2,40,000 | 4,20,000 | Part A | No |
| 18 Nov 2026 | 1,50,000 | 5,70,000 | Part C | Yes |
| 10 Feb 2027 | 90,000 | 6,60,000 | Part C | Yes |

The November payment is small, but it takes the total past INR 5,00,000. Every later payment to this designer in the tax year needs Part C and its own Form 146. The count resets on 1 Apr 2027.

### The cost of filing Part D by mistake

Suppose IndiaCo files Part D for the September royalty and deducts no TDS. A later review finds the royalty taxable at the 15 percent treaty rate.

| Consequence | Basis | Amount (INR) |
|---|---|---|
| Extra tax from disallowing the royalty (20,00,000 at 25.168%) | Section 35(b)(ii) | 5,03,360, reversed in the year the TDS is paid |
| Penalty equal to the tax not deducted | Section 448 | 3,00,000 |
| Penalty for an inaccurate Form 145 | Section 462 | 1,00,000 |
| Interest on late deduction (1% of 3,00,000) | Section 398 | 3,000 a month |

The first three lines total INR 9,03,360 against a tax of INR 3,00,000. Section 470 can remove the penalties if IndiaCo proves reasonable cause. A written tax analysis made at filing time is the best evidence.

## Common mistakes

1. **Treating the 33 purpose codes as a blanket exemption.** Rule 220(3) applies only to sums not chargeable to tax. Fix: check chargeability first, then the code.
2. **Choosing Part D for a dividend or a treaty rate payment.** A dividend is taxable even at a treaty rate. Fix: use Part C with Form 146, or Part B with a certificate.
3. **Filing Forms 15CA and 15CB for money sent after 31 Mar 2026.** The remittance date decides the form (Q4.25). Fix: file Forms 145 and 146.
4. **Testing INR 5,00,000 payment by payment.** The rule counts the tax year's aggregate. Fix: keep a running total for each payee from 1 April.
5. **Buying a Form 146 when a Form 128 certificate exists.** Part B needs no Form 146. Fix: file Part B and quote the certified amount.
6. **Claiming a treaty rate without a TRC and Form 41.** Section 159(8) makes both conditions of relief. Fix: collect them before the year's first payment.
7. **Filing Form 145 after the bank has remitted.** Rule 220 requires the form first. Fix: file before you release the bank instruction.
8. **Reusing one Form 146 for two remittances.** One Form 146 is consumed by one Form 145. Fix: order a certificate for each remittance.
9. **Mismatching the purpose code or amount with the bank's form.** The bank returns the file. Fix: work from one source sheet for all papers.
10. **Forgetting to gross up a net of tax contract.** Section 393(10) taxes the grossed up sum. Fix: read the tax clause before you compute TDS.
11. **Citing section 195 in a Form 146 for a 2026-27 payment.** The 2025 Act governs income accruing from 1 Apr 2026. Fix: cite sections 393, 397(3)(d) and 159.

## Checklist before each foreign remittance

1. Identify the payee, its country and the nature of the payment from the invoice and agreement.
2. Decide whether the sum is chargeable in India under sections 5 and 9, before any treaty.
3. Check whether rule 220(3) exempts the remittance, and stop if it is exempt and not taxable.
4. Add the payment to the payee's running total for the tax year.
5. Collect the TRC, Form 41, declarations and PAN or TIN for any treaty rate claim.
6. Compute TDS at the section 207 or treaty rate, grossed up if the contract says net of tax.
7. Deduct TDS on credit or payment, whichever is earlier, and deposit it by the 7th of the next month.
8. Choose Part A, Part B with a section 395 certificate, Part C with Form 146, or Part D.
9. Assign the chartered accountant on the portal and obtain Form 146 with a UDIN for Part C.
10. File Form 145, verify it with DSC or EVC, and download the acknowledgement.
11. Give the bank Form 145, Form 146 and its own remittance application before it remits.
12. Review the filed form within 7 days, and withdraw and refile if anything is wrong.
13. Report the TDS in Form 144 for the quarter and issue Form 131 to the payee.

For a second review before a remittance goes to the bank, send the invoice and agreement through our [contact page](/contact).

## Frequently Asked Questions

### What is the new form number for Form 15CA?

Form 15CA is now Form 145, prescribed by rule 220 of the Income Tax Rules, 2026. It applies to every remittance made on or after 1 Apr 2026. Form 145 keeps the four parts and the INR 5,00,000 test of Form 15CA. It adds fields such as TIN, ITDREIN and the BSR code, and uses the tax year.

### What is Form 15CB called now?

Form 15CB is now Form 146, the certificate of an accountant for payments to a non resident or a foreign company. It supports Part C of Form 145 under rule 220. A chartered accountant in practice files it on the portal with a DSC. One Form 146 can support only one Form 145.

### Is Form 145 needed for a payment below INR 5,00,000?

Yes, unless rule 220(3) exempts it. A taxable payment within INR 5,00,000 for the tax year goes in Part A, with no Form 146. A payment that is not taxable goes in Part D at any amount. Only non taxable LRS, IFSC unit and listed purpose code remittances need no Form 145.

### Does a payment exempt under a tax treaty go in Part C or Part D?

We file Part C with a Form 146 where the Income Tax Act, 2025 charges the sum but a treaty relieves it. Form 146 records the article, the TRC and, for business income, why no PE exists. Part D is for sums the Act itself does not charge, such as loan principal.

### Can one Form 145 cover several invoices?

Form 145 is event based, so you file one for each remittance. One remittance can settle several invoices to the same payee if the bank sends them as one payment. Each Form 146 is consumed by one Form 145, so every Part C remittance needs its own certificate.

### Who can sign Form 146 for a company?

An accountant under section 515(3)(b) of the Income Tax Act, 2025: a chartered accountant with a certificate of practice. For a company, the definition excludes anyone not eligible to be its auditor under section 141(3) of the Companies Act, 2013. On our reading, that rules out the company's own employees and officers. The accountant must be registered on the portal with a DSC.

### Is UDIN required on Form 146?

The Form 146 guidance note says UDIN is "now mandatory" and that the portal checks it against ICAI in real time. The Form 146 user manual calls the field "currently optional", with validation after submission. Form 145, Part C also carries the UDIN. We generate one for every Form 146.

### Does the foreign payee need an Indian PAN for Form 145?

No. The Form 145 FAQs say the remittee's PAN is not mandatory, but you must then give its tax identification number (TIN). TDS is a separate test. Without a PAN, section 397(2)(b)(i) sets the higher of the applicable rate and 20 percent. The payee escapes that if it gives the rule 217 details.

### Is Form 145 needed to pay a foreign supplier for imported goods?

Usually not. Codes S0101 (advance for imports), S0102 (import settlement) and S0190 (imports below INR 5,00,000) are on the rule 220 list. The exemption holds only if the payment is not taxable in India. A payment that bundles installation or other services may be partly taxable and then needs Form 145.

### Is Form 145 needed for a dividend to a foreign parent?

Yes. Dividends are not on the rule 220 list and are taxable under section 207(1) at 20 percent or the treaty rate. Above INR 5,00,000 in the tax year, the company files Part C with Form 146, or Part B with a section 395 certificate. Part D does not fit a dividend.

### Do I need Form 146 if the payee holds a lower deduction certificate?

No. A certificate under section 395(1) (Form 128) or an order under section 395(2) takes you to Part B of Form 145. The portal's forms FAQ confirms that Part B needs no Form 146. Enter the certificate number, date, rate and the amount it covers.

### Is a DSC mandatory to file Form 145?

It depends on the login. The Form 145 FAQs say DSC is mandatory for TAN users, and others can verify with DSC or EVC. The accountant always signs Form 146 with a DSC registered on the portal. We use the director's DSC for company filings, so the signatory matches the bank mandate.

### What is ITDREIN in Form 145?

ITDREIN is the Income Tax Department Reporting Entity Identification Number. The department issues it to an authorised dealer or other reporting entity that registers on the portal. The optional ITDREIN field in Form 145 lets the department match your form with the bank's quarterly Form 147.

### Can Form 145 be filed after the money has left India?

Rule 220(4) requires the form before remitting. The Form 145 guidance note says no time limit is prescribed, but the form "should be submitted before the remittance is made". Neither source provides for a late filing. If money left without Form 145, section 462 exposure starts. Record the reason, since section 470 allows a reasonable cause defence. Have your chartered accountant check on the portal how to regularise the filing.

### Do Forms 145 and 146 apply when an NRI repatriates money from an NRO account?

In practice, yes. Paragraph 3.2 of RBI's Master Direction on Remittance of Assets (No. 13/2015-16, updated 29 Jun 2026) lets an NRI or PIO remit up to USD one million a financial year from NRO balances. Paragraph 5 makes the remittance subject to Indian tax and leaves tax questions to the tax law. Banks usually ask for Form 145, and Form 146 where Part C applies, as the tax evidence.

### Does Form 146 confirm that a related party payment is at arm's length?

No. Form 146 certifies the tax on the sum you remit: chargeability, treaty article, rate and grossing up. It does not test whether the price is right. That test sits in the transfer pricing report, Form 48 (old Form 3CEB), and the documentation under sections 161 to 173.

### Is the section 462 penalty a fixed INR 1,00,000 or a maximum?

Section 462 says the Assessing Officer "may impose a penalty of ₹ 100000". The Form 145 FAQs call it a penalty "of upto of ₹1 lakh". So the officer decides whether to levy it, but the Act names one figure. Section 470 removes it if you prove reasonable cause.

### Do resident individuals need to file Form 145?

Yes, when they pay a non resident, such as a foreign consultant. Rule 220(3)(a) exempts an individual's remittance under the Liberalised Remittance Scheme only if the sum is not taxable in India. A taxable payment by an individual still needs Form 145 in the right part.

## Sources

- Income Tax Department, Guidance note on Form No. 145, read 27 Sep 2026, https://www.incometaxindia.gov.in/documents/d/guest/fn-145
- Income Tax Department, Guidance note on Form No. 146, read 27 Sep 2026, https://www.incometaxindia.gov.in/documents/d/guest/fn-146
- Income Tax Department, Form No. 145 FAQs, read 27 Sep 2026, https://www.incometaxindia.gov.in/documents/d/guest/form-145-faqs
- Income Tax Department, Form No. 146 FAQs, read 27 Sep 2026, https://www.incometaxindia.gov.in/documents/d/guest/form-146-faqs
- Income Tax Department, Guidance note on Form No. 41, read 27 Sep 2026, https://www.incometaxindia.gov.in/documents/d/guest/fn-41
- Income Tax Department, Rule 220 of the Income Tax Rules, 2026, read 27 Sep 2026, https://www.incometaxindia.gov.in/w/rule-220-1
- Central Board of Direct Taxes, Income Tax Rules, 2026, G.S.R. 198(E), 20 Mar 2026, https://www.incometaxindia.gov.in/documents/d/guest/en-notified-it-rules-2026-20-03-2026-pdf
- Income Tax Department, Income Tax Act, 2025 as amended by Finance Act, 2026, https://www.incometaxindia.gov.in/documents/d/guest/income_tax_act_2025_as_amended_by_fa_act_2026-pdf
- Income Tax Department, Section 397 (compliance and reporting), https://www.incometaxindia.gov.in/w/section-397-6
- Income Tax Department, Section 462 (penalty for information under section 397(3)(d)), https://www.incometaxindia.gov.in/w/section-462-5
- Income Tax Department, Section 463 (penalty for incorrect information in reports or certificates), https://www.incometaxindia.gov.in/w/section-463-5
- Income Tax Department, Section 470 (penalty not to be imposed in certain cases), https://www.incometaxindia.gov.in/w/section-470-6
- Income Tax Department, Section 393 (tax to be deducted at source), https://www.incometaxindia.gov.in/w/section-393-5
- Income Tax Department, Section 395 (certificates), https://www.incometaxindia.gov.in/w/section-395-5
- Income Tax Department, Section 35 (amounts not deductible in certain circumstances), https://www.incometaxindia.gov.in/w/section-35-174
- Income Tax Department, Section 159 (agreements with foreign countries), https://www.incometaxindia.gov.in/w/section-159-89
- Income Tax Department, Section 207 (tax on dividends, royalty and technical service fees of foreign companies), https://www.incometaxindia.gov.in/w/section-207-76
- Income Tax Department, Section 200 (tax on income of certain domestic companies), https://www.incometaxindia.gov.in/w/section-200-75
- Income Tax Department, Section 515 (appearance by authorised representative), https://www.incometaxindia.gov.in/w/section-515-1
- Central Board of Direct Taxes, FAQs on Interplay and Transition from the Income Tax Act, 1961 to the Income Tax Act, 2025 (updated version), April 2026, https://www.incometaxindia.gov.in/documents/81799/11848482/Updated-FQAs-on-Interplay&Transitions.pdf/e10ad2b6-9495-de90-58d3-20606d8954ae?t=1775128640970
- Income Tax Department, Income Tax Forms FAQs, read 27 Sep 2026, https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/%20income%20tax%20forms-faq
- Income Tax Department, Form 145 user manual, read 27 Sep 2026, https://www.incometax.gov.in/iec/foportal/newformpage/forms/form145-UM
- Income Tax Department, Form 146 user manual, read 27 Sep 2026, https://www.incometax.gov.in/iec/foportal/newformpage/forms/form146-UM
- Income Tax Department, FAQs and Guidance Notes on Forms as per Income Tax Rules, 2026, read 27 Sep 2026, https://www.incometaxindia.gov.in/faqs-and-guidance-notes-on-forms-as-per-income-tax-rules-2026
- Income Tax Department, Navigator for the Income Tax Rules, 2026, https://www.incometaxindia.gov.in/documents/20117/15818071/navigator-Income-tax-Rules-2026.pdf/575fafb5-2674-d9c1-48ea-b9ebbacfa4cd?version=1.0&t=1770714698960
- Income Tax Department, Section navigator, Income Tax Act, 1961 to 2025, https://www.incometaxindia.gov.in/documents/20117/43138/new-income-tax-bill-2025-navigator.pdf
- Central Board of Direct Taxes, Notification No. 89/2023 amending rule 37BB, G.S.R. 740(E), https://www.incometaxindia.gov.in/documents/20117/6507196/Notification89-2023.pdf/cd22cd3e-f3fa-a328-f72f-093e53f5d352?t=1763304593690
- Income Tax Department, India US DTAA, Article 12, https://www.incometaxindia.gov.in/w/usa-comprehensive-agreements-1
- Reserve Bank of India, Master Direction on Miscellaneous (FED Master Direction No. 19/2015-16), updated 13 May 2026, https://rbi.org.in/SCRIPTs/BS_ViewMasterDirections.aspx?id=10203
- Reserve Bank of India, A.D. (M.A. Series) Circular No. 11, 16 May 2000, on section 10(5) of FEMA, https://www.rbi.org.in/SCRIPTs/BS_FemaNotifications.aspx?Id=183
- Reserve Bank of India, Master Direction on Remittance of Assets (No. 13/2015-16), updated 29 Jun 2026, paragraphs 3.2 and 5, https://www.rbi.org.in/scripts/BS_ViewMasDirections.aspx?id=10197
- Income Tax Department, Companies Act, 2013, section 141 (eligibility of auditors), read 27 Sep 2026, https://www.incometaxindia.gov.in/w/section-141-78
- Income Tax Department, Section 448 (penalty for failure to deduct or pay tax), https://www.incometaxindia.gov.in/w/section-448-5
- Income Tax Department, Form 15CA FAQs (old regime), read 27 Sep 2026, https://www.incometax.gov.in/iec/foportal/help/statutory-forms/popular-forms/form-15ca-faq
- Ministry of Finance, Memorandum explaining the provisions in the Finance Bill, 2026, 1 Feb 2026, https://www.indiabudget.gov.in/doc/memo.pdf

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