Form 145 – Meaning, Applicability & Steps to File

What is Form 145?

Form 145 is a mandatory declaration required before making any payment to a non-resident or a foreign company. It must be submitted prior to the remittance and helps ensure that the correct tax has been considered on such cross-border transactions.

This requirement is governed by the Income Tax Act, 2025, specifically under Sections 393, 395, 397, and 462, along with Rule 220 of the Income Tax Rules, 2026.

To simplify the transition from the earlier law, here is how Form 145 compares with the previous provisions:

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Why Form 145 is important

Form 15CA was originally introduced under Section 195(6) of the Income Tax Act, 1961, along with Rule 37BB of the Income Tax Rules, 1962. It served as a self-declaration that taxpayers had to submit before making any payment to a non-resident or foreign entity, mainly to report the transaction and ensure proper tax compliance.

Why was it replaced?

With the introduction of the Income Tax Act, 2025, the earlier law was overhauled. As a result, all existing forms, including Form 15CA, were replaced to match the updated structure, reporting standards, and compliance framework under the new regime.

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Who should file Form 145?

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

It is applicable to:

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

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When is Form 145 required?

You need to file Form 145:

• Before making the foreign remittance
• For each transaction separately
• Regardless of whether the payment is recurring or one-time

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Who Does Not Need to File Form 145?

• Individuals sending money abroad under the Liberalized Remittance Scheme (LRS), where no RBI approval is required
• Units operating in an International Financial Services Center (IFSC)
• Certain transactions notified by the RBI that are not taxable under the Income-tax law and are specifically exempt from reporting

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Components and Structure of Form 145

Form 145 is divided into four sections based on amount and taxability:

Part A – Taxable payments up to ₹5 lakh

This section is used when:

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

You need to provide:

• Details of the sender (name, PAN, address, contact details)
• Details of the recipient (name, address, foreign tax ID)
• Remittance details (amount, country, bank details)
• Nature of payment (selected from predefined categories)
• TDS details (rate, amount, deduction date)
• RBI purpose code
• Declaration by the sender

Part B – Taxable payments above ₹5 lakh (with AO certificate)

This applies when:

• The payment is taxable,
• Total amount exceeds ₹5 lakh, and
• You have obtained a lower/nil TDS certificate from the Assessing Officer under the Income Tax Act, 2025

In addition to Part A details, you must include:

• Details of the AO certificate
• Approved TDS rate as per the certificate

Part C – Taxable payments above ₹5 lakh (with CA certificate)

This is the most commonly used section for high-value remittances.

It applies when:

• The payment is taxable,
• Total amount exceeds ₹5 lakh, and
• You have a CA certificate in Form 146 instead of an AO certificate

Additional details required:

• Chartered Accountant’s details
• Acknowledgement number of Form 146
• UDIN of the CA certificate
• Taxability under Indian tax law
• Taxability under DTAA (if applicable), including treaty rate
• Tax Residency Certificate (TRC), if claiming treaty benefit

Part D – Non-taxable payments

This section is used when the remittance is not taxable in India.

Examples include:

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

You need to provide:

• Basic details of sender and recipient
• Remittance details
• Declaration confirming that the payment is not taxable

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What is Form 146?

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

What does Form 146 certify?

A CA issues Form 146 after verifying key details of the transaction, including:

• Nature and purpose of the remittance
• Whether the payment is taxable in India
• Taxability under the Double Taxation Avoidance Agreement (DTAA), if applicable
• Applicable TDS rate and tax amount
• 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 required only in specific cases:

• When the remittance is taxable, and
• The total amount exceeds ₹5 lakh, and
• You are filing Part C of Form 145, and
• You do not have a certificate from the Assessing Officer

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Documents and Details Required for Form 145

To file Form 145 correctly, you will need the following documents:

Basic details of the remitter

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

Details of the foreign recipient

• Name and address
• Tax Identification Number (TIN) in their country
• Country of residence
• Tax Residency Certificate (TRC), if you are claiming DTAA benefit

Remittance details

• Amount being sent and currency
• Purpose of remittance (RBI purpose code)
• Nature of payment (selected from the prescribed list in the form)
• BSR code of the bank branch handling the remittance

Tax (TDS) details

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

Bank details

• Authorised Dealer (AD) bank details

Additional documents

• For Part B:
  Details of the Assessing Officer (AO) certificate obtained under the Income Tax Act, 2025
• For Part C:
  • Acknowledgement number of Form 146
  • UDIN issued by the Chartered Accountant

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Details required to file Form 145

You will need to provide:

• Remitter details: PAN, name, address
• Recipient details: Name, country, tax identification number
• Payment details: Amount, currency, bank details
• Purpose of remittance (as per RBI codes)
• Tax details: TDS rate, amount deducted
• Supporting documents, if required

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How to file Form 145 Online?

Form 145 can be filed in two ways—online through the income tax portal or offline using a utility. For most users, the online method is simpler and faster.

Follow these steps:

• Log in to the Income Tax e-filing portal using your ID and password
• Go to e-File → Income Tax Forms → File Income Tax Forms
• Open the tab for forms under the Income Tax Act, 2025
• Search and select Form 145
• Choose “Online” mode, select the relevant tax year, and continue
• Click “Let’s Get Started” and select the applicable part (A, B, or D)
• Fill in all required details:
  • Remitter and remittee information
  • Remittance details (amount, country, purpose)
  • Nature of payment and TDS details
• Review the form carefully in the preview section
• Click “Proceed to e-Verify” and verify using DSC or EVC
• Submit the form and download the acknowledgment
• Share the filed form and acknowledgment with your bank (Authorized Dealer) before making the payment

Filing Form 145 (Part C – With CA Certificate)

(Applicable when Form 146 is required)

For high-value or complex transactions, follow this process:

• Add your Chartered Accountant on the portal:
  My Account → Authorised Partners → My Chartered Accountants → Add CA
• Enter the CA’s membership number and assign Form 146
• The CA will:
  • Log in and prepare Form 146
  • Certify taxability, DTAA applicability, and TDS rate
  • Verify the form using DSC
• Once submitted by the CA, log back in and select Form 145 – Part C
• Enter the acknowledgment number of Form 146 (Most details will be auto-filled)
• Complete any remaining fields, review, and e-verify
• Submit the form and download the acknowledgment
• Provide the documents to your Authorized Dealer (AD) bank

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Due date for Form 145

Form 145 does not follow a yearly due date. It is an event-based compliance, meaning it must be filed every time you make a foreign remittance.

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Penalty for not filing Form 145

Filing Form 145 is mandatory under the Income Tax Act, 2025. Not complying can lead to both financial penalties and transaction delays.

• Penalty up to ₹1 lakh
  Under Section 462, a penalty may be imposed if the form is not filed or if incorrect details are provided
• Remittance may get blocked
  Banks (Authorized Dealers) usually won’t process foreign payments without a Form 145 acknowledgment
• Tax demand and interest
  If TDS is not deducted correctly, the shortfall can be treated as a default, leading to additional tax and interest under Section 220
• Penalty for wrong information
  The same penalty can apply even if the form is filed but contains incorrect or incomplete details

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Form 15CA vs Form 145 - Key Differences

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