Your company is about to pay an overseas software vendor. The bank asks for a tax declaration, but your accounts checklist still says 15CA and 15CB. For remittances made on or after 1 April 2026, the corresponding forms under the Income-tax Act, 2025 are Form 145 (the remitter’s information form) and, where required, Form 146 (the accountant’s certificate). First decide whether the payment is chargeable to Indian tax; that answer controls the part of Form 145 and whether a CA certificate is necessary.
The governing provision is Rule 220 of the Income-tax Rules, 2026 Official ↗. The Income Tax Department’s transition FAQ Official ↗ confirms the 1 April 2026 form change. The names changed, but the responsibility to examine taxability and meet any withholding obligation did not disappear.
A ₹5 lakh payment is not automatically taxable, and a non-taxable payment is not automatically exempt from reporting. Rule 220 has different routes for chargeable payments (Parts A–C), non-chargeable payments (Part D) and certain expressly excluded non-chargeable remittances. Document the taxability decision before choosing a part.
Old forms and new forms
| Before 1 April 2026 | From 1 April 2026 |
|---|---|
| Form 15CA: remitter’s declaration under the old framework | Form 145: remitter’s information under Rule 220 |
| Form 15CB: accountant’s certificate where required | Form 146: accountant’s certificate used for Form 145 Part C |
The form is tied to the date of remittance. Forms 15CA/15CB already filed for a remittance completed before the transition remain valid, subject to the conditions in the department’s FAQ. If a pre-April form was prepared but the bank did not remit by its stated date, obtain the correct fresh form before payment. A liability accrued before April but actually remitted later needs a separate check: the department says the new procedural forms apply to an April remittance, while taxability of income accrued in an earlier year may be governed by the earlier Act. Do not mechanically file an old form for a late 2026 payment.
Which part of Form 145 applies?
Rule 220 provides a straightforward decision sequence. Determine chargeability first, then look at the amount or aggregate of payments during the tax year and the available certificate.
| Situation | Form route |
|---|---|
| Chargeable payment; amount or aggregate up to ₹5 lakh | Form 145 Part A. |
| Chargeable payment; amount or aggregate above ₹5 lakh, with an Assessing Officer certificate or order under section 395(1)/(2) | Form 145 Part B. No Part C or Form 146 for the same route. |
| Chargeable payment; amount or aggregate above ₹5 lakh, without that AO route | Obtain Form 146 from an accountant, then file Form 145 Part C. |
| Payment not chargeable to Indian tax | Form 145 Part D, unless a specific Rule 220(3) exclusion applies. |
The threshold concerns the payment or aggregate of such payments during the tax year, not a fresh ₹5 lakh allowance for each invoice. Track earlier payments before selecting Part A for a later transfer. At exactly ₹5 lakh, the rule uses “does not exceed”; the above-₹5 lakh route begins only when the amount or aggregate exceeds it. If treaty treatment affects taxability, support the conclusion with documents rather than relying on a generic invoice label.
What does Form 146 certify?
Form 146 is the accountant’s certificate that supports Part C. A registered Chartered Accountant examines the nature of the payment, its chargeability, the applicable domestic law and treaty provisions, and tax withholding. The official Form 146 FAQ Official ↗ says the CA must be registered on the e-filing portal, have a registered DSC and be assigned the form by the taxpayer.
No CA certificate is required just because a payment exceeds ₹5 lakh. If it is not chargeable and Part D applies, Form 146 is not the Part D route. If an AO certificate or order supports Part B, Rule 220 says Part C need not be furnished. For chargeable payments above the threshold without that AO route, the CA files Form 146 before the remitter submits Part C. The department describes Form 146 as event-based for each relevant remittance, not a single blanket certificate for all payments during the year.
When can no Form 145 be needed?
Rule 220(3) gives exceptions for a sum not chargeable under the Act. These include an individual’s remittance that does not require prior RBI approval under the specified foreign-exchange provisions, a remittance by the specified IFSC unit, and listed RBI purpose-code categories. The official rule Official ↗ includes, for example, S0101 for advance payment against imports and S0102 for settlement of an import invoice.
Do not apply a purpose-code label without checking the actual transaction and the non-chargeability condition in sub-rule (3). A service fee with a tax component cannot be moved outside reporting simply by choosing a code resembling goods imports. Equally, “not taxable” is normally Part D, unless one of those specific exceptions applies. A bank can also request commercial and foreign-exchange documents regardless of whether Form 145 is required under tax rules.
Examples before you pay
Example 1 — taxable fee of ₹3 lakh: If a payment to a non-resident is chargeable in India and the relevant amount or aggregate for the tax year does not exceed ₹5 lakh, the remitter generally uses Part A. Assess tax deduction separately.
Example 2 — taxable fee of ₹8 lakh: If the amount or aggregate exceeds ₹5 lakh and an applicable AO certificate or order under section 395(1)/(2) has been obtained, use Part B. Otherwise arrange the accountant’s Form 146, then file Part C. Do not assume the certificate proves the treaty rate without checking the payee’s facts.
Example 3 — non-chargeable payment: A remittance properly determined not to be chargeable generally uses Part D. If it also meets a specific Rule 220(3) exception, no Form 145 information is required under that rule. Keep the taxability note and supporting invoice for the bank and later review.
These examples concern income-tax reporting, not a decision on GST reverse charge, RBI approvals or foreign-exchange classification. Those may require separate work.
Documents to prepare
- Commercial basis: signed agreement, invoice, description of goods or services, proposed date and amount, payee identity and country.
- Tax analysis: why the payment is or is not chargeable in India; the domestic provision and any relevant Double Taxation Avoidance Agreement (DTAA) article.
- Treaty support, where claimed: Tax Residency Certificate and applicable Form 41 (the new counterpart of Form 10F) or other prescribed information, along with a permanent establishment declaration where relevant. The department’s Form 41 user manual Official ↗ explains the form.
- Certificate path: AO certificate or order for Part B, or assignment to the CA and Form 146 for Part C.
- Payment and banking details: remitter PAN/TAN where applicable, remittee details, bank information, RBI purpose code and the bank’s remittance request documents.
A Tax Residency Certificate does not by itself prove that every payment is exempt. Treaties can change the tax result for a specific income type and payee; check the contract, residence, beneficial ownership and other relevant conditions.
How to file Forms 145 and 146
- Review the payment. Identify the payee, nature of income, tax year and earlier remittances included in the threshold calculation.
- Determine chargeability and withholding. Decide whether the payment is taxable in India, the relevant treaty position and any tax to deduct. TDS timing and deposit have their own statutory rules; do not assume the remittance form replaces them.
- Choose Part A, B, C or D. Record why Rule 220(3) does or does not remove the information requirement.
- For Part C, assign the CA. The taxpayer adds or assigns the registered CA in the portal. The CA submits Form 146 with a registered DSC before Part C is filed. For Part B, retain the AO certificate or order instead.
- File and verify Form 145. On the e-filing portal Official ↗, select the Income-tax Act, 2025 forms and the relevant tax year. The department’s Form 145 user manual Official ↗ describes online filing and an offline utility that uploads data for final submission. TAN users must use a DSC under the official FAQ.
- Give the bank the prescribed copy. Rule 220(4) requires the electronically filed form or signed printout, as applicable, to be submitted to the authorised dealer before remittance. Save the acknowledgement and transaction ID with the invoice and tax workings.
There is no fixed number of days before payment for Form 145, but it must be furnished before the remittance. If the amount, date, payee or tax position changes after preparation, check whether a fresh filing is needed before asking the bank to process the transfer.
Mistakes that delay foreign payments
- Filing Part A because one invoice is below ₹5 lakh without checking the tax-year aggregate.
- Assuming every non-taxable remittance needs no form; many require Part D.
- Obtaining Form 146 unnecessarily when a valid AO route supports Part B.
- Treating a goods-import purpose code as proof that a mixed service payment is outside tax.
- Reusing a pre-April 15CA/15CB for a remittance actually made after 1 April 2026.
- Asking the CA to certify Part C before the contract, treaty support and payee details are complete.
For a business remittance, TaxQue can help classify the payment, review treaty documents and coordinate the relevant form with a CA. See the existing foreign remittance filing service; the service URL retains its old form label, while the current form numbers are 145 and 146.
Official sources
- Income-tax Rules, 2026, Rule 220 Official ↗ — Parts A–D, the threshold and exclusions.
- Income Tax Department’s Form 145 FAQ Official ↗ and Form 146 FAQ Official ↗ — filing and CA certificate guidance.
- Income Tax Department transition FAQ Official ↗ — old and new forms across 1 April 2026.
- Form 145 user manual Official ↗ — portal filing steps.
Information reviewed on 7 November 2026. Check the current law, treaty, purpose code and portal instructions for the specific payment.
