Form 145 is a mandatory declaration form for foreign remittances under the new Income Tax Act, 2025. If you are sending money to a non-resident individual or a foreign company, you must file this form before making the payment.

Form 145 replaces the earlier Form 15CA and needs to be filed separately for every foreign remittance transaction. In some cases, you may also need a CA certificate in Form 146 before submitting Form 145.

What is Form 145?

Form 145 is a declaration that must be submitted before making payments to a non-resident or foreign company. It helps the tax department ensure that the correct tax has been deducted or considered on international payments.

The requirement for Form 145 is governed by the Income Tax Act, 2025, mainly under Sections 393, 395, 397, and 462, along with Rule 220 of the Income Tax Rules, 2026.

To make it easier to understand, here is a quick comparison between the old and new provisions:

Particulars	Under Income Tax Act, 1961	Under Income Tax Act, 2025
Form Name	Form 15CA	Form 145
Section	Section 195	Section 395
Income Tax Rule	Rule 37BB of Income Tax Rules, 1962	Rule 220 of Income Tax Rules, 2026

Why is Form 145 Important?

Earlier, taxpayers had to file Form 15CA under Section 195(6) of the Income Tax Act, 1961 and Rule 37BB of the Income Tax Rules, 1962 before making payments to a non-resident or foreign company. It worked as a self-declaration form to report foreign payments and ensure proper tax compliance.

Why Was Form 15CA Replaced?

With the introduction of the Income Tax Act, 2025, several tax provisions were updated. As part of these changes, old forms were replaced with new ones to match the updated compliance and reporting system.

As a result, Form 15CA has now been replaced by Form 145 under the new tax regime.

Who Should File Form 145?

Form 145 must be filed by any person making a payment to a non-resident individual or foreign company before sending money outside India, as per Rule 220 of the Income Tax Rules, 2026.

It is generally applicable to:

• Indian companies paying royalty, fees, interest, or dividends to foreign entities
• Individuals sending money abroad for professional services, investments, or business purposes
• Businesses paying foreign consultants, overseas vendors, or software providers
• Banks or financial institutions making remittances for customers
• Any taxpayer or authorised person responsible for reporting foreign payments

When is Form 145 Required?

You need to file Form 145 in the following cases:

• Before making a foreign remittance
• For every transaction separately
• Whether the payment is one-time or recurring

Who Does Not Need to File Form 145?

Form 145 is not required in certain cases, such as:

• Individuals sending money abroad under the Liberalized Remittance Scheme (LRS) where RBI approval is not needed
• Businesses operating in an International Financial Services Center (IFSC)
• Certain RBI-notified transactions that are not taxable in India and are exempt from reporting

Components and Structure of Form 145

Form 145 is divided into four parts, depending on the amount of remittance and whether the payment is taxable in India.

Part A – Taxable Payments Up to ₹5 Lakh

Part A applies when:

• The payment is taxable in India, and
• The total payment to the same recipient during the financial year is up to ₹5 lakh

Details required include:

• Sender’s details (name, PAN, address, contact information)
• Recipient’s details (name, address, foreign tax ID)
• Remittance details (amount, bank details, country)
• Nature of payment
• TDS details (rate, amount, deduction date)
• RBI purpose code
• Declaration by the sender

Part B – Taxable Payments Above ₹5 Lakh (With AO Certificate)

Part B applies when:

• The payment is taxable,
• Total payment exceeds ₹5 lakh, and
• You have obtained a lower or nil TDS certificate from the Assessing Officer (AO)

Along with Part A details, you must also provide:

• Details of the AO certificate
• Approved TDS rate mentioned in the certificate

Part C – Taxable Payments Above ₹5 Lakh (With CA Certificate)

Part C is the most commonly used section for higher-value foreign remittances.

It applies when:

• The payment is taxable,
• The amount exceeds ₹5 lakh, and
• A CA certificate in Form 146 is obtained instead of an AO certificate

Additional details required:

• Chartered Accountant’s details
• Form 146 acknowledgement number
• UDIN of the CA certificate
• Taxability under Indian tax laws
• DTAA benefits and treaty rate (if applicable)
• Tax Residency Certificate (TRC) for claiming treaty benefits

Part D – Non-Taxable Payments

Part D is used when the foreign payment is not taxable in India.

Examples include:

• Import of goods
• Certain capital transactions
• Payments specifically exempt under tax laws

Details required:

• Basic information of sender and recipient
• Remittance details
• A declaration confirming that the payment is not taxable in India

What is Form 146?

Form 146 is a certificate issued by a Chartered Accountant (CA) under the Income Tax Act, 2025. It replaces the earlier Form 15CB and is used before making certain foreign payments to confirm the tax details of the transaction.

What Does Form 146 Confirm?

Before issuing Form 146, a CA checks important details related to the payment, such as:

• The purpose and nature of the foreign payment
• Whether the payment is taxable in India
• Whether any benefit under the Double Taxation Avoidance Agreement (DTAA) is available
• The correct TDS rate and tax amount to be deducted
• Details of the Tax Residency Certificate (TRC) of the foreign recipient
• UDIN (Unique Document Identification Number) for authenticity

When is Form 146 Required?

Form 146 is needed only in specific cases:

• The payment is taxable in India
• The total payment is more than ₹5 lakh
• You are filing Part C of Form 145
• You do not have an Assessing Officer (AO) certificate

Documents and Details Required for Form 145

To file Form 145 correctly, you should keep the following details ready.

1. Remitter (Sender) Details

You need:

• PAN of the person making the payment
• TAN, if applicable
• ITDREIN (Income Tax Department Reporting Entity Identification Number)
• Name and address of the sender

2. Foreign Recipient Details

You need:

• Name and address of the foreign recipient
• Tax Identification Number (TIN) of their country
• Country of residence
• Tax Residency Certificate (TRC) if claiming DTAA benefit

3. Remittance Details

Keep the following information ready:

• Amount being sent and currency type
• Purpose of remittance (RBI purpose code)
• Nature of payment
• BSR code of the bank branch handling the transfer

4. Tax (TDS) Details

You will need:

• Applicable TDS rate
• Amount of tax deducted
• Date of tax deduction

5. Bank Details

Provide details of the Authorized Dealer (AD) bank handling the remittance.

6. Additional Documents (If Required)

For Part B:

• Details of the Assessing Officer (AO) certificate

For Part C:

• Form 146 acknowledgement number
• UDIN issued by the CA

Details Required to File Form 145

While filing Form 145, you need to provide:

• Sender details: PAN, name, address
• Recipient details: Name, country, tax identification number
• Payment details: Amount, currency, and bank details
• Purpose of remittance: As per RBI code
• Tax details: TDS rate and tax deducted
• Supporting documents, if required

How to File Form 145 Online?

You can file Form 145 online through the Income Tax portal or offline using a utility. However, online filing is easier and faster.

Steps to File Form 145 Online

1. Log in to the Income Tax e-filing portal using your ID and password.
2. Go to:
   e-File → Income Tax Forms → File Income Tax Forms
3. Open the section for forms under the Income Tax Act, 2025.
4. Search for and select Form 145.
5. Choose Online mode, select the relevant tax year, and continue.
6. Click “Let’s Get Started” and choose the applicable part (A, B, C, or D).
7. Fill in the required details, such as:

• Sender and recipient information
• Remittance amount, country, and purpose
• Nature of payment
• TDS details

8. Review all details carefully in the preview section.
9. Click “Proceed to e-Verify” and verify using DSC or EVC.
10. Submit the form and download the acknowledgment.
11. Share the acknowledgment with your Authorized Dealer (AD) bank before making the payment.

Filing Form 145 Part C (With Form 146)

For higher-value transactions where a CA certificate is required, follow these extra steps:

1. Add your CA on the portal:
   My Account → Authorised Partners → My Chartered Accountants → Add CA
2. Enter the CA membership number and assign Form 146.
3. The CA will:

• Prepare Form 146
• Verify taxability, DTAA benefits, and TDS rate
• Submit the form using DSC

4. Once the CA files Form 146, log in again and open Form 145 – Part C.
5. Enter the Form 146 acknowledgement number. Most details will be auto-filled.
6. Complete the remaining details, e-verify, and submit the form.
7. Download the acknowledgment and share it with your AD bank.

Due Date for Form 145

Form 145 does not have a yearly due date. It must be filed every time you make a foreign remittance.

Event	Who Needs to Act	Timeline
File Form 145 (Part A/B/D)	Taxpayer / Remitter	Before each remittance
File Form 145 Part C	Taxpayer	Before remittance above ₹5 lakh
File Form 146	Chartered Accountant	Before filing Part C
Withdraw Form 145	Remitter	Within 7 days of filing

Penalty for Not Filing Form 145

Filing Form 145 is mandatory. Not filing it may create problems and penalties.

1. Penalty up to ₹1 lakh

Under Section 462, a penalty may apply if:

• Form 145 is not filed, or
• Wrong or incomplete details are submitted

2. Foreign Payment May Get Delayed

Banks usually do not process international payments without a Form 145 acknowledgment.

3. Tax Demand and Interest

If TDS is deducted incorrectly, additional tax and interest may be charged.

4. Penalty for Wrong Information

Even if you file the form, providing incorrect details can attract penalties.

Form 15CA vs Form 145 – Key Differences

Basis	Form 15CA (Old)	Form 145 (New)
Applicable Law	Income Tax Act, 1961	Income Tax Act, 2025
Main Section	Section 195	Section 395
Rule	Rule 37BB	Rule 220
CA Certificate	Form 15CB	Form 146
UDIN Requirement	Not Mandatory	Mandatory
Recipient TIN	Not Required	Mandatory
Filing Period	Up to 31 March 2026	From 1 April 2026
Filing Method	Online / Offline	Online / Offline

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