The Income Tax Rules, 2026 introduced Form 145 and Form 146, replacing the earlier Form 15CA and Form 15CB from 1 April 2026. These forms are mandatory for specified foreign remittances and play an important role in ensuring tax compliance before funds are transferred outside India. The new forms continue the existing compliance framework while introducing procedural improvements under the Income-tax Act, 2025.
Whether you are an NRI, OCI, foreign national, or resident making payments outside India, understanding when these forms are required can help avoid delays in fund repatriation.
What Is Repatriation of Funds?
Repatriation refers to the transfer of money from India to a bank account outside India. It may include:
- Sale proceeds of property in India.
- Rental income.
- Investments redeemed in India.
- Inheritance or gifts.
- Professional fees or business payments to non-residents.
- Other eligible outward remittances permitted under applicable laws.
Before processing many such remittances, banks require compliance with the Income Tax Rules to ensure that applicable taxes have been correctly deducted and reported.
What Is Form 145?
Form 145 is the declaration to be furnished before making a payment to a non-resident or a foreign company. It replaces the earlier Form 15CA and provides details of the remitter, the recipient, the nature of the remittance, and its taxability. It must be filed before the remittance is processed.
Depending on the nature and value of the remittance, Form 145 is divided into four parts:
- Part A – For taxable remittances where the aggregate amount during the tax year does not exceed ₹5 lakh.
- Part B – For taxable remittances exceeding ₹5 lakh where a certificate from the Assessing Officer has been obtained.
- Part C – For taxable remittances exceeding ₹5 lakh where a Chartered Accountant has issued Form 146.
- Part D – For specified remittances that are not taxable under the Income-tax Act, subject to the applicable rules.
What Is Form 146?
Form 146 replaces the earlier Form 15CB. It is a certificate issued by a Chartered Accountant after examining the nature of the remittance, its taxability, and the applicable TDS provisions.
The certificate generally confirms:
- Nature and purpose of the remittance.
- Relevant provisions of the Income-tax Act.
- DTAA applicability, where relevant.
- TDS liability and applicable tax rate.
- Amount of tax deducted, if required.
The Income Tax Department has also introduced UDIN verification for Form 146 to strengthen authenticity and enable real-time validation of the Chartered Accountant’s certificate.
When Are Form 145 and Form 146 Required?
These forms are commonly required for remittances such as:
- Sale proceeds of property by an NRI.
- Transfer of funds from an NRO account abroad.
- Payment of professional or consultancy fees to non-residents.
- Royalty, technical service fees, or commission payments.
- Other taxable remittances made outside India.
The requirement depends on the nature of the transaction, the amount being remitted, and whether tax is payable in India.
Documents Commonly Required
While the documentation may vary depending on the transaction, banks and tax professionals generally require:
- PAN of the remitter.
- Passport and KYC documents (where applicable).
- Bank account details.
- Purpose of remittance.
- Supporting agreements or invoices.
- Property sale documents, if applicable.
- Capital gains computation, where relevant.
- Proof of tax payment or TDS compliance.
Additional documents may be requested based on the bank’s internal compliance procedures.
Key Changes Under the Income Tax Rules, 2026
The revised framework introduced several procedural improvements:
- Form 145 replaces Form 15CA.
- Form 146 replaces Form 15CB.
- Existing compliance requirements broadly continue under the new law.
- Where an Assessing Officer’s certificate is available and Part B of Form 145 is filed, a separate Form 146 is generally not required, reducing duplicate compliance.
- The prescribed filing thresholds remain broadly aligned with the earlier rules. Common Mistakes to Avoid
While preparing for fund repatriation, taxpayers should avoid:
- Filing an incorrect part of Form 145.
- Assuming Form 146 is required for every remittance.
- Providing incomplete supporting documents.
- Ignoring TDS implications before initiating the transfer.
- Delaying compliance until the bank requests the documents.
- Using the old Forms 15CA and 15CB for remittances made on or after 1 April 2026.
Conclusion
Form 145 and Form 146 are essential compliance documents for many outward remittances under the Income Tax Rules, 2026. Understanding when each form applies, maintaining proper documentation, and ensuring timely tax compliance can help facilitate a smooth repatriation process. Whether the remittance relates to property sale proceeds, investment income, or payments to non-residents, using the correct forms helps avoid delays and ensures compliance with the applicable tax provisions.
If you have any further questions or need assistance, feel free to reach out to us at admin@ushmaassociates.com or info@nricaservices.com, or contact us via call/WhatsApp at +91 9910075924.
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Disclaimer: Aim of this article is to give basic knowledge about the topic to people who are not in touch with Indian tax norms. When anybody is dealing with these kinds of cases practically, he shall consider all relevant provisions of all applicable Laws like FEMA/Income Tax/RBI /Companies Act etc.
