Indian businesses and individuals making payments to non-residents need to distinguish between the old Form 15CA/15CB framework and the forms that apply under the Income Tax Act, 2025. For remittances made on or after 1 April 2026, the Income Tax Department states that the new Act applies and the prescribed reporting forms are Form 145 and Form 146. Form 145 is the equivalent of old Form 15CA, while Form 146 is the equivalent of old Form 15CB. The Department explains the transition in its Income Tax Forms FAQs.
What do Form 145 and Form 146 do?
Form 145 is the remitter's information form for payments to a non-resident or foreign company. Form 146 is the Chartered Accountant's certificate used in the cases prescribed by the rules. The Department identifies section 397(3)(d) of the Income Tax Act, 2025 as the corresponding provision to the earlier section 195(6) reporting framework.
The basic compliance logic remains familiar: determine whether the remittance is taxable in India, determine the applicable withholding position, and then select the correct reporting route. The new form numbers should not be treated as a cosmetic renaming, because the Department has also redesigned how the parts interact.
How the four parts of Form 145 work
The Income Tax Department describes Form 145 as a four-part form. The correct part depends mainly on taxability, the aggregate amount remitted during the year and whether an Assessing Officer certificate or CA certificate has been obtained.
- Part A: applies where the remittance is taxable and the remittance or aggregate remittance does not exceed ₹5 lakh during the year.
- Part B: applies where the remittance is taxable, exceeds ₹5 lakh, and the remitter has obtained the relevant certificate from the Assessing Officer under section 395(1) or 395(2).
- Part C: applies where the remittance is taxable, exceeds ₹5 lakh, and a CA certificate in Form 146 has been obtained.
- Part D: applies where the remittance is not taxable under the Act, other than payments covered by the specified exception in Rule 220(3).
This structure makes the first question a taxability question, not simply an amount question. A large remittance does not automatically mean that Form 146 is required; the legal character of the payment and whether an AO certificate exists matter.
When is Form 146 required?
Form 146 is the CA certificate corresponding to old Form 15CB. Under the Department's current guidance, it is relevant to Part C of Form 145 where a taxable remittance exceeds the prescribed ₹5 lakh threshold and the taxpayer is proceeding through the CA-certification route rather than the AO-certificate route.
A useful change is that a remitter filing Part B of Form 145 on the strength of an Assessing Officer certificate is not required to obtain Form 146. The Department specifically describes this as removing duplication that existed in the earlier framework.
What should the CA examine?
The certification exercise is more than checking the invoice value. The professional should examine the nature of the payment, the domestic-law chargeability, the applicable withholding provision and any relevant Double Taxation Avoidance Agreement. Documentation should support the beneficial rate or non-taxability position where one is claimed.
Form 146 also introduces UDIN verification through the ICAI API, according to the Department's FAQ. This makes correct professional credentials and UDIN generation part of the filing control.
What if Form 15CA or 15CB was already filed before April 2026?
The transition depends on the remittance date. The Department states that Forms 15CA/15CB submitted for remittances made before 31 March 2026 remain valid after commencement of the new Act, provided the remittance actually took place on or before the date mentioned in the form. If the remittance was not completed within that period, fresh forms may be required before payment.
For remittances made on or after 1 April 2026, Form 145 and Form 146 apply. The Department also clarifies an important transitional example: where a liability accrued in February 2026 but payment is remitted in April 2026, the procedural reporting follows the law in force on the remittance date, while taxability of the underlying income is governed by the law applicable to the year of accrual.
Practical workflow before a foreign remittance
- Identify the payment: document the recipient, country, agreement, invoice and exact nature of the remittance.
- Determine chargeability: analyse domestic law and the applicable DTAA rather than assuming that every overseas payment is either taxable or exempt.
- Check the annual aggregate: the ₹5 lakh threshold affects the route for taxable remittances.
- Check for an AO certificate: if the prescribed AO certificate exists, Part B may apply and Form 146 is not required under the current framework.
- Obtain Form 146 where Part C applies: give the CA sufficient agreements, invoices, tax-residency and treaty-supporting documents to perform the certification.
- File before remittance: complete the prescribed information and certification process before the payment is processed.
- Retain the evidence: preserve the filed form acknowledgements, certificate, taxability analysis, withholding computation and banking/remittance documents.
Example
Suppose an Indian company proposes to remit ₹8 lakh during the year to a foreign service provider and, after reviewing domestic law and the applicable treaty, concludes that the payment is taxable in India. If it does not have the relevant Assessing Officer certificate, the current framework points to the CA-certification route: Form 146 is obtained and Part C of Form 145 is used. If the company instead has the prescribed AO certificate, Part B applies and the Department says a separate Form 146 is not required.
Common mistakes to avoid
- Using old Form 15CA/15CB terminology for a remittance actually made after 1 April 2026 without checking the new forms.
- Choosing a part only from the payment amount without first analysing whether the remittance is taxable.
- Obtaining a CA certificate even though a valid AO-certificate route makes it unnecessary.
- Ignoring treaty documents and the underlying contract when determining withholding.
- Confusing the date a liability accrued with the date of remittance during the old-to-new Act transition.
Practical takeaway
For remittances made on or after 1 April 2026, practitioners should build their process around Form 145 and, where required, Form 146 rather than automatically reaching for Forms 15CA and 15CB. Start with taxability, then check the ₹5 lakh threshold and whether an AO certificate exists. The Income Tax Department's official forms FAQ should be checked before filing because it contains the current transition rules, Form 145 structure and Form 146 requirements.
