Form 15CA, 15CB (Now Form 145, 146): Foreign Remittance TDS Compliance Guide (2026)

If your business makes payments to non-residents, you have long dealt with Form 15CA and Form 15CB as the mandatory pre-remittance compliance under the Income Tax Act 1961. That framework has changed. From April 1, 2026, the Income Tax Rules 2026 (notified alongside the Income Tax Act 2025) replaced Form 15CA with Form 145 and Form 15CB with Form 146. The underlying obligation remains the same: declare the taxability of every foreign remittance to the Income Tax Department before the bank initiates the SWIFT transfer. What has changed is the form number, certain structural refinements to Part D, and the alignment of section references with the new Act.

This guide covers everything you need to know about the transition: the four parts of Form 145, when Form 146 is required, the filing process on the e-filing portal, DTAA considerations, penalties, and what happens to old filings made under Form 15CA/15CB.

Looking for expert help with Form 15CA 15CB Form 145 146 foreign remittance TDS India? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant end-to-end: filings, notices, and advisory, all in one place.

What Were Form 15CA and Form 15CB?

Form 15CA was a declaration filed by any person making a payment (remittance) to a non-resident or a foreign company. It was filed electronically on the Income Tax e-filing portal, and the acknowledgement number had to be submitted to the authorised dealer (bank) before the remittance could be processed. The purpose was to ensure that the remitter had evaluated the tax liability arising on the payment and that TDS under Section 195 had been correctly deducted and deposited.

Form 15CB was a certificate issued by a practising Chartered Accountant. It certified the nature of the payment, the applicable rate of TDS (under the Income Tax Act or the relevant DTAA), and that the tax had been correctly deducted. Form 15CB was not required for every remittance; it was triggered when the aggregate remittance to a payee exceeded Rs 5 lakh in a financial year and no order or certificate from the Assessing Officer was available.

Together, Form 15CA and Form 15CB formed the compliance backbone of India's foreign remittance tax reporting system under Rule 37BB of the Income Tax Rules, 1962.

What Replaced Them: Form 145 and Form 146

The Income Tax Act 2025 replaced the Income Tax Act 1961 with effect from April 1, 2026. Alongside, the Central Board of Direct Taxes (CBDT) notified the Income Tax Rules 2026, which renumbered all prescribed forms.

The substantive obligations are carried forward. Rule 37BB continues to govern the requirement, with updated section references pointing to Section 393 (TDS on non-resident payments) and Section 462 (penalty for non-furnishing of information) under the new Act.

The compliance logic is unchanged: determine taxability, select the correct Form 145 Part, obtain Form 146 from a CA where required, file on the portal, hand the acknowledgement number to the bank, and the bank processes the remittance.

Section 195: The Foundation of TDS on Foreign Payments

Section 195 of the Income Tax Act 1961 (now Section 393 under the Income Tax Act 2025) is the provision that makes all of this necessary. It requires every person making a payment to a non-resident to deduct TDS at the applicable rate if the payment is chargeable to tax in India.

Key points of Section 195:

• Scope: Any sum (other than salary) payable to a non-resident that is chargeable to tax in India.
• Responsible person: The payer (the Indian entity or individual making the remittance) is the deductor.
• Rate of TDS: Depends on the nature of income (royalty, fees for technical services, interest, capital gains, etc.) and whether a DTAA applies. Domestic rates range from 10% to 40%. DTAA rates are often lower.
• Section 195(2): If the payer considers that the entire payment is not chargeable to tax, the payer may apply to the Assessing Officer for a determination.
• Section 195(3): Certain payees can apply for a nil or lower deduction certificate from the AO.

Form 145 and Form 146 are the procedural implementation of this obligation. They ensure the remitter has evaluated Section 195 and complied before the money leaves India.

For a detailed breakdown of TDS rates and practical scenarios under Section 195, see our TDS on non-residents guide covering Section 195 and Section 393.

Form 145: Four Parts Explained

Form 145 is structured into four parts. The correct part depends on three factors: whether the remittance is chargeable to tax in India, the aggregate amount remitted to the same payee during the financial year, and whether an AO certificate has been obtained.

Part A: Taxable, Aggregate Up to Rs 5 Lakh

Part A is the simplified filing for smaller taxable remittances. If the total amount remitted to a particular non-resident payee during the financial year does not exceed Rs 5 lakh, the remitter files Part A with basic details: payee name, country, nature of payment, amount, and TDS details. No CA certificate is needed. The remitter self-declares the taxability and applicable TDS rate.

Part B: AO Certificate Obtained

Part B applies when the aggregate exceeds Rs 5 lakh but the remitter has already obtained an order or certificate from the Assessing Officer under Section 195(2), 195(3), or Section 197. The AO's determination overrides the need for a CA certificate. The remitter uploads or references the AO order number while filing Part B.

For guidance on obtaining a lower or nil TDS certificate, see our Section 197 guide.

Part C: Taxable Above Rs 5 Lakh, CA Certificate Required

Part C is the most common filing for businesses making significant foreign payments. The aggregate remittance exceeds Rs 5 lakh, the payment is taxable, and the remitter has obtained Form 146 from a Chartered Accountant. The CA certificate must be uploaded during the Part C filing. Part C cannot be submitted on the portal without a valid Form 146 with UDIN (Unique Document Identification Number from the ICAI portal).

Part D: Not Chargeable to Tax

Part D covers remittances that are not chargeable to tax in India. Examples include business income of a foreign entity with no permanent establishment (PE) in India (under a DTAA), payments exempt under specific sections, or transactions that fall under the 33 exempt categories notified under Rule 37BB(3). The remitter self-declares the non-taxability and provides the basis (DTAA article, section, or exempt category number).

Form 146: When the CA Certificate Is Mandatory

Form 146 is mandatory when all three conditions are met simultaneously:

1. The remittance is chargeable to tax in India under the Income Tax Act or DTAA.
2. The aggregate remittances to the same payee during the financial year exceed Rs 5 lakh.
3. The remitter has not obtained an order or certificate from the Assessing Officer under Section 195(2)/195(3)/197.

When these three conditions converge, the remitter must engage a practising Chartered Accountant to issue Form 146 before filing Form 145 Part C.

What Does the CA Certify in Form 146?

The Chartered Accountant examines the transaction and certifies:

• The nature of the remittance and the relevant head of income under Indian tax law
• Whether the payment is taxable in India under domestic law or treaty provisions
• The applicable rate of TDS and the amount of tax deductible
• Whether any DTAA benefit has been claimed, and if so, the relevant treaty article and rate
• Whether a Tax Residency Certificate (TRC) and Form 10F have been obtained from the payee
• Whether any exemption or lower deduction certificate under Section 197 applies
• That the tax liability has been discharged before the remittance is made

The CA must generate a UDIN from the ICAI portal for every Form 146 issued. A Form 146 without a valid UDIN is rejected on the income tax e-filing portal.

Turnaround Time

A CA typically requires 1 to 3 business days to review the contract, invoice, TRC, and applicable DTAA provisions, and issue Form 146. For recurring payments to the same vendor (such as monthly SaaS subscriptions), the initial review takes longer, but subsequent certificates can be issued faster since the nature of payment and treaty analysis remain the same.

DTAA Considerations for Foreign Remittances

The Double Taxation Avoidance Agreement (DTAA) between India and the payee's country of residence can significantly reduce the TDS rate applicable on the remittance. For example:

To claim the lower DTAA rate, the remitter must obtain the following from the non-resident payee:

1. Tax Residency Certificate (TRC): Issued by the tax authority of the payee's country confirming tax residency.
2. Form 10F: A self-declaration by the non-resident containing nationality, tax identification number, and address details.
3. No PE declaration: Where relevant, a declaration that the non-resident does not have a permanent establishment in India.

Without these documents, you must deduct TDS at the higher domestic rate. The CA issuing Form 146 verifies these documents as part of the certification.

For a detailed analysis of treaty rates, see our India-USA DTAA guide.

Step-by-Step Filing Process on the E-Filing Portal

Step-by-Step Guide

Filing Form 145 on the Income Tax E-Filing Portal

Complete these steps before your bank processes the foreign remittance

1

Log In to the E-Filing Portal

Access incometax.gov.in/iec/foportal/ and sign in using your PAN and password.

Portal Access

2

Navigate to Income Tax Forms

Go to e-File > Income Tax Forms > File Income Tax Forms and search for Form 145.

Navigation

3

Select the Correct Part (A, B, C, or D)

Choose the part based on your taxability analysis, aggregate remittance amount, and whether you hold an AO certificate or CA certificate.

Part Selection

4

Upload Form 146 for Part C

If filing Part C, upload the CA-issued Form 146 with a valid UDIN. Part C submission will be blocked without it.

CA Certificate

5

Enter Remittee and Payment Details

Fill in the payee's name, country of residence, PAN (if available), nature of payment, amount in foreign currency, equivalent INR amount, TDS rate applied, and remitting bank details.

Payment Info

6

E-Verify the Form

Submit the form and e-Verify using your Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) through Aadhaar OTP or net banking.

Verification

7

Download the Acknowledgement

After successful submission, download the acknowledgement containing the unique Form 145 number.

Acknowledgement

8

Submit Acknowledgement to Your Bank

Provide the Form 145 acknowledgement number to your bank's forex desk. The bank enters it in the SWIFT transaction before processing the remittance.

Bank Step

Source: Income Tax Act 2025, Rule 37BB; CBDT e-Filing Portal

The filing process for a straightforward Part A or Part D typically takes 20 to 30 minutes. Part C filings require advance planning because the CA must first issue Form 146 with UDIN, which adds 1 to 3 business days to the overall timeline. If your business makes regular foreign payments, build this lead time into your payment cycle.

E-verification options: Form 145 must be e-Verified after submission. You can use a Digital Signature Certificate (DSC) registered on the portal, or an Electronic Verification Code (EVC) generated via Aadhaar OTP or net banking. For companies and LLPs, DSC of the authorised signatory is the standard method.

Exempt Payments: When Form 145 Is Not Required

Rule 37BB(3) notifies 33 categories of remittances that are fully exempt from the Form 145/Form 146 requirement. For these payments, neither form is needed. The major exempt categories include:

• Import of goods (covered under customs, not income tax)
• Tuition and other fees paid to recognised foreign universities
• Medical treatment abroad by an Indian resident
• Purchase of international travel tickets (air, rail, sea)
• Remittances by Indian residents to close family members (spouse, children, parents) up to USD 25,000 per financial year
• Embassy and consulate remittances
• Subscriptions to foreign publications

Important caution: A subscription to a foreign magazine is exempt. A SaaS licence payment to a US technology vendor is not on the exempt list and is typically classified as royalty income taxable in India. The nature of the payment, not just the category label, determines whether the exemption applies.

Transitional Provisions: Old Form 15CA/15CB Filings

Form 15CA and Form 15CB filed on or before March 31, 2026 remain valid for remittances that were processed before that date. The Income Tax Department has not required retrospective re-filing under the new form numbers.

For businesses that had ongoing compliance under the old forms:

• Remittances processed before April 1, 2026: Old Form 15CA/15CB acknowledgements continue to be valid. No action needed.
• Remittances processed on or after April 1, 2026: Must use Form 145 and Form 146 (where applicable), even if the underlying contract or invoice was dated before April 2026.
• Pending Form 15CB certificates: If a CA had started work on a Form 15CB before March 31, 2026 but the remittance was not made before that date, a fresh Form 146 must be issued instead.

The form numbers in quarterly TDS returns (Form 27Q, now Form 144 under the new rules) also reference the new form numbers. When reporting Section 195 deductions for Q1 FY 2026-27 onwards, use Form 145/146 references.

Penalties for Non-Compliance

Failure to File Form 145

Section 271-I of the Income Tax Act 1961 (now Section 462 under the Income Tax Act 2025) prescribes a penalty of Rs 1,00,000 per instance for failure to furnish the information required under Rule 37BB. The penalty applies per remittance, not per financial year. A company making twelve monthly payments to a foreign vendor without filing Form 145 faces a potential penalty exposure of Rs 12 lakh.

TDS Default Under Section 201

If you fail to deduct TDS under Section 195 on a payment to a non-resident, you are treated as an assessee in default under Section 201. The consequences include:

• TDS amount: You must pay the TDS that should have been deducted, from your own funds.
• Interest under Section 201(1A): 1% per month (or part thereof) from the date of deduction to the date of payment, and 1.5% per month from the date of deduction to the date of actual deposit.
• Penalty under Section 271C: Penalty equal to the amount of TDS not deducted, though this is subject to reasonable cause provisions.

Bank Reporting

Authorised dealers (banks) are required to report remittances for which they did not receive a Form 145 acknowledgement to the Income Tax Department. This makes non-compliance easily detectable during assessment or scrutiny proceedings.

The combined exposure of TDS default, interest, penalty under Section 462, and potential prosecution makes it significantly costlier to skip the compliance than to invest the time and CA fees upfront.

Practical Scenarios

Scenario 1: Indian Company Paying a US SaaS Vendor

An Indian private limited company pays USD 1,500 per month (approximately Rs 1.5 lakh) to a US-based SaaS company. The annual aggregate is approximately Rs 18 lakh. The payment qualifies as royalty under the Income Tax Act.

• Form 145 Part: Part C (taxable, aggregate exceeds Rs 5 lakh)
• Form 146: Required from a CA for each remittance
• TDS rate: 10% under the India-US DTAA (subject to TRC and Form 10F from the US vendor)
• Documents from vendor: Tax Residency Certificate, Form 10F, no PE declaration

Scenario 2: Freelancer Payment Below Rs 5 Lakh

A startup pays Rs 3 lakh to a UK-based freelance designer for branding work. This is the only payment to this designer during the year.

• Form 145 Part: Part A (taxable, aggregate does not exceed Rs 5 lakh)
• Form 146: Not required
• TDS rate: 10% under the India-UK DTAA for fees for technical services (with TRC), or 20% + cess without DTAA documents

Scenario 3: Student Education Fees

An Indian parent sends GBP 15,000 to a UK university for their child's tuition fees.

• Form 145: Not required. Education fees to recognised foreign universities fall under the Rule 37BB(3) exempt categories.
• Form 146: Not required.
• The remittance is processed under the Liberalised Remittance Scheme (LRS) without additional income tax form compliance.

Scenario 4: Remitter Has AO Certificate

A large infrastructure company makes annual interest payments of Rs 2 crore on an External Commercial Borrowing. The company has obtained a certificate from the Assessing Officer under Section 195(2) confirming the applicable TDS rate.

• Form 145 Part: Part B (AO certificate obtained)
• Form 146: Not required (the AO certificate substitutes the CA certificate)
• TDS rate: As determined by the AO in the certificate

Let Tax Garden Handle Your Foreign Remittance Compliance

Filing Form 145 and obtaining Form 146 involves determining taxability under Indian law and applicable DTAAs, computing the correct TDS rate, coordinating with a CA for certification, and ensuring the acknowledgement reaches the bank before the payment deadline. For businesses making regular international payments, this becomes a recurring compliance workstream.

Tax Garden's compliance team handles the entire process: taxability determination, TDS computation, Form 146 coordination with a CA, Form 145 filing on the portal, and acknowledgement submission to the bank. Fixed-fee plans are available for businesses with recurring foreign payment obligations.

Frequently Asked Questions

Is Form 15CA still valid after April 1, 2026?

Form 15CA filed before March 31, 2026 for remittances already processed remains valid. For any new remittance from April 1, 2026 onwards, you must use Form 145. The e-filing portal no longer accepts new Form 15CA submissions.

What is the difference between Form 145 Part A and Part D?

Part A covers remittances that are taxable in India where the aggregate amount to the payee does not exceed Rs 5 lakh during the financial year. Part D covers remittances that are not chargeable to tax at all, such as payments exempt under a DTAA (business income with no PE) or payments falling under Rule 37BB exempt categories. Part A requires TDS details; Part D requires the basis of non-taxability.

Can I file Form 145 after the remittance has already been processed?

Under normal circumstances, Form 145 must be filed before the bank processes the remittance. Part D of Form 145 provides a limited exception for post-remittance filing in cases where RBI has approved a delay, but this is rare. Filing after remittance without such approval exposes you to the Rs 1 lakh penalty.

Does Form 146 need to be filed separately from Form 145?

Yes. Form 146 is filed independently by the Chartered Accountant on the e-filing portal with a valid UDIN. Once the CA files Form 146, the remitter references it while filing Form 145 Part C. The two forms are linked through the acknowledgement number of Form 146.

Is Form 145 required for import of goods?

No. Import of goods is specifically listed among the 33 exempt categories under Rule 37BB(3). The customs duty and GST on imports are handled separately. Form 145 is only for remittances that are chargeable to income tax.

My CA does not have a DSC. Can Form 146 still be filed?

No. Form 146 must be filed on the e-filing portal by the Chartered Accountant using a valid Digital Signature Certificate (DSC). A CA without a DSC cannot file Form 146 online. You will need to engage a CA who has a current DSC registered on the portal.

What if the aggregate crosses Rs 5 lakh mid-year?

Once the aggregate remittances to a payee cross Rs 5 lakh during the financial year, all subsequent remittances require Form 146 and Form 145 Part C (or Part B if an AO certificate is available). The earlier remittances filed under Part A remain valid and do not need to be re-filed.

This article draws on the Income Tax Act 2025, Rule 37BB of the Income Tax Rules 2026, Section 195 (now Section 393) and Section 271-I (now Section 462) of the Income Tax Acts, and CBDT circulars on foreign remittance compliance procedures. Transitional validity of Form 15CA and Form 15CB is based on CBDT administrative guidance issued alongside the Income Tax Rules 2026. DTAA rates referenced are from the respective treaties as currently in force. Readers should verify the applicable rates and exempt categories with a qualified Chartered Accountant before processing cross-border payments, as treaty rates and administrative guidance may be updated by CBDT from time to time.