Form 145 is a declaration submitted by the person making a payment to an NRI, containing details of the remittance and applicable TDS.
If you are remitting money abroad to a non-resident individual (NRI), or an NRI is sending funds abroad, the compliance procedure has undergone some changes. However, these changes are primarily procedural, while the basic requirements continue to remain the same.
The key change is that Forms 15CA and 15CB have been replaced by Forms 145 and 146 under the Income-tax Rules, 2026. The remitter must still provide details of the remittance, obtain a CA certificate when the amount exceeds the prescribed threshold, and comply with applicable TDS requirements.
For remittances made on or after 1 April 2026, the provisions of the Income Tax Act, 2025 will apply. Accordingly, Form Nos. 145 and 146 prescribed under the Income-tax Rules, 2026 must be used.
Form 145 and Form 146
According to the Indian income tax website, Form No. 145 is a declaration made by the remitter or the person making a payment to a non-resident. It is used to provide information about the nature of the remittance and the applicable TDS.
Form 146 is a certificate issued by a Chartered Accountant confirming the nature of the remittance, applicable provisions under the DTAA, and the relevant TDS rate. Form 146 is required when a taxable payment exceeding Rs. 5 lakh is made during a year to a person residing outside India or to a foreign company.
The form is required each time such a payment is made. A Chartered Accountant examines the transaction and verifies details such as the purpose of the payment, the applicable TDS amount, and whether the tax deduction is accurate. In simple terms, Form 146 is a CA certificate that verifies the tax liability associated with a remittance made abroad. The form can be submitted online or offline, and there is no specific deadline prescribed for its submission.
What’s New
Under the new framework, when Part B of Form 145 is furnished after obtaining an Assessing Officer (AO) certificate, Part C is not required. This removes the duplication that existed under the earlier system. Taxpayers filing Part B of Form 145 with an AO certificate do not need to obtain Form 146 from a Chartered Accountant. This reduces the compliance burden and related costs for remitters.
The new framework has also introduced the Unique Document Identification Number (UDIN), which enables real-time verification of the authenticity of a CA certificate.
Although certain details are auto-populated, information relating to the remitter, such as address, status, TAN, email ID, and contact number, is now specifically required. Another important change is the mandatory requirement to provide the Tax Identification Number (TIN) and principal place of business of the beneficiary in the new forms.
Where DTAA benefits are claimed, the Tax Residency Certificate (TRC) number must also be provided. In addition, when the remittance relates to capital gains, the forms require additional information, including the date and consideration of the sale and the date and cost of acquisition.
The Tax Identification Number of the recipient in the country or specified territory of residence is also required. If the recipient does not have such a number, a unique identification number used by the government of that country or specified territory to identify the person as a resident must be provided.
Filling Forms
If you are sending money abroad to a non-resident individual, the compliance process has changed, but the fundamental requirements remain largely the same. The forms have been renumbered and renamed, while the underlying compliance process remains similar.
Form 145 consists of four parts. The applicable part depends on the circumstances of the remittance:
- Below Rs. 5 lakh or taxable remittance: Fill Part A.
- Above Rs. 5 lakh with an Assessing Officer (AO) certificate: Fill Part B. If this option is used, a CA certificate in Form 146 is not required. This is a relief introduced under the 2026 rules, as the earlier system could require both.
- Above Rs. 5 lakh with a CA certificate (Form 146): Fill Part C. This option can be used when an AO certificate is not available.
- Remittance that is not taxable: Fill Part D. No CA certificate is required in this case.