By Taxabide 21 Oct 2026

Form 145 and Form 146 in 2026: Foreign Remittance Rules, Thresholds & Filing Process

Published: October 21, 2026
Last Updated: October 21, 2026

Quick Answer: What Are Form 145 and Form 146?

Form 145 and Form 146 are Indian income-tax forms used for specified foreign remittance reporting and certification. Form 145 records relevant payment information, while Form 146 provides an accountant's certificate when the applicable rules require one. Under the new framework, they replace Forms 15CA and 15CB, respectively.

Form 145 records information about a qualifying foreign remittance. Meanwhile, Form 146 provides an accountant's certificate when the applicable filing route requires one. Rule 220 of the Income-tax Rules, 2026 uses a ₹5 lakh threshold to determine the relevant reporting route for specified taxable payments. However, crossing that threshold does not automatically mean every remitter must obtain Form 146.

Businesses and individuals should check the payment's tax treatment, applicable certificates, and relevant exceptions before sending money abroad.

For official guidance, visit the Income Tax Department's Form 145 page.

Key Takeaways

  • Form 145 replaces Form 15CA under the new income-tax framework.

  • Form 146 replaces Form 15CB and provides an accountant's certificate where required.

  • The new forms apply to qualifying remittances under the new framework from April 1, 2026.

  • Rule 220 uses a ₹5 lakh threshold for specified taxable payments or their aggregate during the tax year.

  • Depending on the circumstances, taxpayers may need to use Part A, B, C, or D of Form 145.

  • Part C uses the accountant's certificate in Form 146, while Part B covers the relevant Assessing Officer's certificate or order.

  • The applicable tax rules, withholding obligations, and any relevant Double Taxation Avoidance Agreement (DTAA) can affect the correct filing route.

Who Should Use This Form 145 and Form 146 Guide?

This guide is designed for Indian business owners, finance managers, accountants, Chartered Accountants and individuals who plan to send payments to non-residents or foreign companies. It is particularly relevant to businesses in IT services, consulting, exports, international trade and other industries that make cross-border payments.

Use this guide before paying an overseas consultant, settling a foreign service invoice or transferring money for another business transaction. It helps you identify which Form 145 filing route may apply, when an accountant's certificate in Form 146 may be needed, and which tax details to review before remitting funds. The final decision depends on the payment's taxability, amount and applicable income-tax rules.

What Are Form 145 and Form 146?

Form 145 and Form 146 belong to India's updated foreign-remittance compliance framework. They help taxpayers report relevant payment details and establish the appropriate tax treatment for specified payments to non-residents or foreign companies.

In simple terms, the remitter uses Form 145 to provide information about a qualifying payment. An eligible accountant uses Form 146 to certify the relevant details when the applicable rules require that certificate.

For example, an Indian business might pay a foreign consultant for professional services. Before making the payment, the business should examine the contract, the nature of the income and the recipient's tax status. It can then determine whether the remittance falls under Rule 220 and which filing route applies.

The Income Tax Department identifies Form 145 as the successor to Form 15CA and Form 146 as the successor to Form 15CB. Therefore, businesses making qualifying payments under the new framework should follow the updated form instructions.

However, these forms do not apply automatically to every international bank transfer. The payment's nature, taxability, and applicable exceptions determine the reporting requirements.

Form 145 vs Form 146: What Is the Difference?

Feature

Form 145

Form 146

Main purpose

Reports information about a qualifying remittance

Provides an accountant's certificate

Earlier equivalent

Form 15CA

Form 15CB

Who completes it?

The person responsible for the remittance or an authorised representative

An eligible accountant meeting the applicable requirements

When does it apply?

According to the relevant part of Rule 220

When the applicable filing route requires the certificate

Main function

Records remittance and tax-related details

Certifies relevant tax and payment information

Remember: Form 146 does not replace Form 145. When Part C applies, the accountant submits Form 146, and the remitter uses its acknowledgement details to complete Form 145 Part C.

Who Needs to Check Form 145 and Form 146?

Anyone responsible for a payment to a non-resident or foreign company should review the applicable rules before transferring money abroad.

For instance, the following taxpayers may need to assess their obligations:

  • An Indian business paying an overseas consultant.

  • A company purchasing qualifying services from a foreign provider.

  • A business making a payment that may count as taxable income in India.

  • A remitter whose payment requires analysis under Indian tax law and an applicable DTAA.

These examples do not mean that every payment in these categories requires both forms. Instead, the taxpayer must examine the actual transaction and apply the relevant rules.

Does every foreign remittance require Form 145?

No. A transfer to a foreign bank account does not automatically trigger Form 145 or Form 146. Rule 220 sets out different filing routes based on the payment's taxability, amount and relevant certificates or orders.

Therefore, first determine whether the payment is chargeable to tax under the applicable law. Then check Rule 220 and the official form instructions to identify the correct route.

Form 145 Threshold in 2026: Understanding the ₹5 Lakh Rule

Rule 220 of the Income-tax Rules, 2026 uses a ₹5 lakh threshold for specified taxable payments during the tax year. Depending on the circumstances, the rule considers an individual payment or the aggregate of relevant payments.

The following table summarises the filing routes described in the rule.

Situation

Relevant Form 145 part

Taxable payment or applicable aggregate does not exceed ₹5 lakh during the tax year

Part A

Taxable payment or aggregate exceeds ₹5 lakh, and the required Assessing Officer's certificate or order has been obtained

Part B

Taxable payment or aggregate exceeds ₹5 lakh, and the accountant's certificate in Form 146 has been obtained

Part C

Payment is not chargeable to tax, subject to the rule's exclusions and conditions

Part D, where applicable

Before selecting a part, read the complete rule and the latest official instructions. The payment amount alone may not determine every aspect of the taxpayer's obligations.

Does crossing ₹5 lakh automatically require Form 146?

No. For a qualifying taxable payment above ₹5 lakh, the taxpayer may use Part B when the prescribed Assessing Officer's certificate or order applies. Alternatively, the taxpayer may use Part C when the accountant's certificate in Form 146 applies.

Rule 220 also addresses the relationship between these routes. Where the taxpayer has furnished Part B under the applicable conditions, Part C is not required for the same filing route.

However, do not treat ₹5 lakh as a universal tax-free limit. Even a smaller payment may have tax implications or require a withholding analysis. Always examine the transaction and the applicable law before making the remittance.

How to File Form 145 Online

The Income Tax Department provides an online filing facility through its e-Filing portal. Follow the current portal instructions for the relevant form and tax year.

Step 1: Visit the official e-Filing portal

Open the Income Tax Department's e-Filing portal and sign in using the appropriate taxpayer credentials.

If an authorised representative manages the filing, make sure the account and permissions support the required action.

Step 2: Open the Income Tax Forms section

Navigate to e-File → Income Tax Forms → File Income Tax Forms. Next, locate the applicable forms under the Income-tax Act, 2025 framework.

Step 3: Select Form 145 and the relevant tax year

Search for Form 145 and choose the relevant tax year. Then review the available filing options before proceeding.

Step 4: Choose the correct form part

Select Part A, Part B, Part C or Part D according to the payment's taxability, amount and the certificate or order you have obtained.

Do not choose a part simply because the payment falls below or above ₹5 lakh. Instead, check the conditions in Rule 220.

Step 5: Enter the remittance details

Provide the requested information about the remitter, recipient, payment and tax treatment. Check every field against the supporting records before submitting the form.

For Part C, follow the portal's instructions for the Form 146 acknowledgement and any information that the system populates automatically.

Step 6: Submit and complete verification

Review the completed form and submit it through the portal. Then follow the required e-verification process.

Finally, save the acknowledgement number, transaction ID and submission confirmation. These records can help you track the filing and respond to future queries.

The Department also provides an offline utility for the relevant forms. Check the official Income Tax Department downloads page for the latest utility and instructions.

How Does Form 146 Work for a Chartered Accountant?

Form 146 provides an accountant's certificate for the applicable Part C filing route. The accountant reviews the payment details and certifies the information required under the relevant rules.

According to the Department's guidance, the CA must register on the e-Filing portal, maintain an active profile and hold a valid Digital Signature Certificate (DSC). The taxpayer must also assign Form 146 to the CA through the portal.

The general process follows these steps:

  • First, the taxpayer assigns Form 146 to the eligible CA.

  • Next, the CA reviews the payment, supporting records and relevant tax information.

  • The CA completes and submits Form 146 through the prescribed portal process.

  • After submission, the taxpayer obtains the acknowledgement details.

  • Finally, the taxpayer uses those details to complete Form 145 Part C and follows the required submission and verification steps.

The CA should review the transaction carefully rather than treating the certificate as a routine formality. In particular, the payment's taxability, applicable withholding rules and relevant DTAA provisions may affect the certificate.

For detailed instructions, consult the official Form 146 user manual.

Documents and Information to Prepare

The information required depends on the transaction and the applicable form part. Nevertheless, preparing the following details can make the process easier:

  • Remitter details: Legal name, address and relevant tax identification information.

  • Recipient details: Name, address, country of residence and available tax identification details.

  • Payment evidence: Contract, invoice or other documents describing the transaction.

  • Remittance details: Amount, currency, payment purpose and proposed transfer date.

  • Tax information: Relevant tax computation and withholding details.

  • Taxability support: Information explaining how Indian tax law applies to the payment.

  • DTAA information: Relevant treaty details if the taxpayer considers treaty relief.

  • Certificate or order: The Assessing Officer's certificate or order when using the applicable Part B route.

  • Form 146 acknowledgement: The acknowledgement details needed for Part C, where applicable.

This list provides practical preparation guidance rather than an exhaustive statutory document checklist. Therefore, compare your records with the current form instructions before filing.

Common Mistakes to Avoid

Assuming every remittance requires Form 146

The applicable filing route depends on the transaction and the relevant provisions. Review Parts A, B, C and D before deciding whether you need an accountant's certificate.

Treating ₹5 lakh as a universal tax-free limit

The threshold helps determine a particular reporting route under Rule 220. It does not automatically remove tax liability or eliminate every withholding obligation.

Ignoring taxability and DTAA provisions

The nature of the income, the recipient's circumstances and any applicable tax treaty can affect the payment's treatment. Consequently, assess these factors before deciding how to report the remittance.

Using the old forms for a new-framework remittance

For remittances governed by the framework from April 1, 2026, taxpayers should follow the prescribed Form 145 and Form 146 requirements. The Department separately addresses qualifying forms already submitted for remittances made on or before March 31, 2026.

Entering incorrect payment or recipient details

Incorrect names, amounts, payment descriptions or tax details can create compliance problems. Before submission, compare the information with the contract, invoice and other relevant records.

Final Takeaway

Form 145 and Form 146 play important roles in India's updated foreign-remittance reporting framework. Form 145 records relevant payment information, while Form 146 provides an accountant's certificate for the applicable filing route.

The ₹5 lakh threshold matters, but it is not a blanket tax exemption or an automatic requirement to obtain Form 146 for every payment. Therefore, review Rule 220, the payment's taxability, relevant DTAA provisions and current portal instructions before transferring funds abroad.

If your business needs help reviewing tax compliance, TDS obligations or foreign-payment documentation, contact TaxAbide to discuss your circumstances. You can also visit TaxAbide to learn more about its tax and compliance services.

Disclaimer: This article provides general information and does not replace professional tax or legal advice. The correct filing route depends on the transaction, taxability and applicable rules. Always check current official guidance before filing or making a remittance.

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Frequently Asked Questions

Form 145 reports information about a qualifying payment to a non-resident or foreign company. Form 146 provides an accountant's certificate for the applicable filing route. Under the new framework, they replace Forms 15CA and 15CB, respectively.

Not in every case. For a qualifying taxable payment above ₹5 lakh, Rule 220 provides a Part B route when the required Assessing Officer's certificate or order applies, or a Part C route using Form 146. The transaction's circumstances determine the correct route.

Yes. You can use the Income Tax Department's e-Filing portal. Select the relevant tax year and form part, enter the required details, submit the form and complete the prescribed verification process.

For remittances governed by the new framework from April 1, 2026, the prescribed forms are Form 145 and Form 146. The Department provides separate guidance for qualifying Forms 15CA and 15CB submitted for remittances made on or before March 31, 2026.

No. Filing Form 145 does not, by itself, prove that the taxpayer calculated or deducted tax correctly. The payer must separately assess the payment's taxability, withholding obligations and any applicable treaty provisions.