Form 145 is a declaration required for remittances made to non-residents. Previously, taxpayers were required to file Form 15CA under the Income-tax Act, 1961. Under the Income Tax Act, 2025, Form 145 has replaced Form 15CA and is governed by Section 395. This new form is applicable from 1st April 2026.
What is Form 145?
Form 145 is a mandatory declaration that must be submitted before making any payment to a non-resident or a foreign company. The form is governed by Sections 393, 395, 397, and 462 of the Income Tax Act, 2025, along with Rule 220 of the Income Tax Rules, 2026.
The table below compares the provisions under the Income-tax Act, 1961, with those under the Income Tax Act, 2025.
| Particulars | Income-tax Act, 1961 | Income Tax Act, 2025 |
|---|---|---|
| Form Name | Form 15CA | Form 145 |
| Governing Section | Section 195 | Section 395 |
| Relevant Rule | Rule 37BB of the Income Tax Rules, 1962 | Rule 220 of the Income Tax Rules, 2026 |
Why Was Form 145 Introduced?
What Was Form 15CA?
Form 15CA was introduced under Section 195(6) of the Income-tax Act, 1961, read with Rule 37BB of the Income Tax Rules, 1962. It served as a self-declaration that taxpayers were required to submit before making a foreign remittance to a non-resident or a foreign company.
Why Was It Replaced?
With the introduction of the Income Tax Act, 2025, the earlier Income-tax Act, 1961, has been superseded. As a result, the forms prescribed under the previous law have also been replaced to align with the compliance framework under the new Act. Accordingly, Form 145 has taken the place of Form 15CA.
Who Is Required to File Form 145?
As per Rule 220 of the Income Tax Rules, 2026, every person responsible for making a payment to a non-resident or a foreign company is required to file Form 145 before remitting the amount outside India.
The filing requirement applies to:
- Indian companies making payments such as royalties, fees, interest, or dividends to foreign entities.
- Resident individuals remitting money abroad for professional services, investments, or other specified purposes.
- Businesses paying overseas consultants, software providers, or licensors.
- Banks and financial institutions making remittances on behalf of their customers.
- Any taxpayer, authorised signatory, or representative assessee responsible for reporting foreign remittances.
Each foreign remittance must be reported separately. A single Form 145 cannot be used for multiple transactions, and a separate form is required for every individual remittance.
When is Form 145 Not Required?
Form 145 is not required for certain remittances that are exempt under the provisions of the Income Tax Act, 2025.
Any foreign remittance made by an individual that is not chargeable to tax under the Income Tax Act and does not require prior approval from the Reserve Bank of India (RBI) is exempt from filing Form 145.
Additionally, transactions carried out by International Financial Services Centres (IFSCs) under Section 147 of the Income Tax Act, 2025 are also excluded from the requirement to file Form 145.
Apart from these exemptions, the following transactions are not required to be reported through Form 145, provided they are not chargeable to tax under the Income Tax Act, 2025.
| Sl. No. | RBI Purpose Code | Transaction Category | Purpose of Transaction |
|---|---|---|---|
| 1 | S0001 | Overseas Investment | Investment in equity shares |
| 2 | S0002 | Overseas Investment | Investment in debt securities |
| 3 | S0003 | Overseas Investment | Investment in wholly owned subsidiaries |
| 4 | S0004 | Overseas Investment | Investment in subsidiaries and associates |
| 5 | S0005 | Overseas Investment | Investment in real estate |
| 6 | S0011 | Loan | Loans granted to non-residents |
| 7 | S0101 | Advances | Advance payments for imports |
| 8 | S0102 | Payment – Non-Capital Nature | Settlement of import invoices |
| 9 | S0103 | Payment – Non-Capital Nature | Imports by diplomatic missions |
| 10 | S0104 | Payment – Non-Capital Nature | Intermediary trade transactions |
| 11 | S0190 | Payment – Non-Capital Nature | Imports below ₹5,00,000 (for use by Exchange Control Department offices) |
| 12 | S0202 | Payment – Non-Capital Nature | Operating expenses of Indian shipping companies abroad |
| 13 | S0208 | Payment – Non-Capital Nature | Operating expenses of Indian airline companies abroad |
| 14 | S0212 | Payment – Non-Capital Nature | Booking of airline passages abroad |
| 15 | S0301 | Travel Payments | Business travel remittances |
| 16 | S0302 | Travel Payments | Travel under the Basic Travel Quota (BTQ) |
| 17 | S0303 | Travel Payments | Pilgrimage travel |
| 18 | S0304 | Travel Payments | Medical treatment abroad |
| 19 | S0305 | Travel Payments | Education expenses, including tuition fees and hostel charges |
| 20 | S0401 | Transport | Postal services |
| 21 | S0501 | Payment – Non-Capital Nature | Overseas project construction by Indian companies, including import of goods at project sites |
| 22 | S0602 | Payment – Non-Capital Nature | Freight insurance related to imports and exports |
| 23 | S1011 | Payment – Non-Capital Nature | Maintenance expenses of offices located abroad |
| 24 | S1201 | Payment – Non-Capital Nature | Maintenance of Indian embassies outside India |
| 25 | S1202 | Others | Remittances by foreign embassies located in India |
| 26 | S1301 | Others | Remittances by non-residents for family maintenance and savings |
| 27 | S1302 | Others | Personal gifts and donations |
| 28 | S1303 | Others | Donations to religious and charitable institutions outside India |
| 29 | S1304 | Others | Grants and donations to foreign governments and government-established charitable institutions |
| 30 | S1305 | Others | Government contributions or donations to international institutions |
| 31 | S1306 | Others | Payment or refund of taxes |
| 32 | S1501 | Others | Refunds, rebates, or reduction in invoice value relating to exports |
| 33 | S1503 | Others | Payments made by residents for international bidding |
Understanding the Four Parts of Form 145
Form 145 is divided into four separate parts, each applicable based on the taxability of the remittance, the amount involved, and the supporting certificate required.
| Part | Taxability | Remittance Amount | Certificate Required |
|---|---|---|---|
| Part A | Taxable | Up to ₹5 lakh (aggregate during the tax year) | No certificate required |
| Part B | Taxable | Above ₹5 lakh | Assessing Officer (AO) certificate under Section 395 |
| Part C | Taxable | Above ₹5 lakh | Chartered Accountant certificate in Form 146 |
| Part D | Non-taxable | Any amount | No certificate required |
Part A – Taxable Remittances Up to ₹5 Lakh
Part A is applicable when the remittance is taxable under the Income Tax Act, 2025, and the total payments made to the same recipient during the tax year do not exceed ₹5 lakh.
The following information must be provided:
- Details of the remitter, including name, PAN, address, and contact information.
- Details of the remittee, including name, address, and Tax Identification Number (TIN) in the country of residence.
- Remittance details such as amount, destination country, bank information, and BSR code.
- Nature of income selected from the prescribed list of 65 remittance categories.
- Tax Deducted at Source (TDS) details, including the applicable rate, amount deducted, and date of deduction.
- RBI Purpose Code.
- Declaration and signature of the remitter.
Part B – Taxable Remittances Exceeding ₹5 Lakh (AO Certificate)
Part B applies where the remittance is taxable, the aggregate amount exceeds ₹5 lakh during the tax year, and the remitter has obtained a lower or nil TDS certificate from the Assessing Officer under Section 395 of the Income Tax Act, 2025.
In addition to the details required in Part A, Part B also requires:
- Particulars of the Assessing Officer’s certificate or lower TDS order.
- Applicable section and TDS rate mentioned in the certificate.
Part C – Taxable Remittances Exceeding ₹5 Lakh (CA Certificate / Form 146)
Part C is generally used for higher-value business remittances. It is applicable where the remittance is taxable, exceeds ₹5 lakh during the tax year, and a Chartered Accountant has issued Form 146 instead of obtaining an Assessing Officer’s certificate.
Besides the information required in Part A, Part C also requires:
- Details of the Chartered Accountant issuing Form 146.
- Acknowledgement number of the verified Form 146.
- UDIN (Unique Document Identification Number) of the CA certificate.
- Taxability analysis under the Income Tax Act without considering the DTAA.
- Taxability under the applicable Double Taxation Avoidance Agreement (DTAA), including the relevant article and treaty rate, where applicable.
- Tax Residency Certificate (TRC) details if DTAA benefits are claimed.
- Details of Form 41, where applicable for lower TDS applications.
Part D – Non-Taxable Remittances
Part D is used when the remittance is completely non-taxable under the Income Tax Act, 2025. This generally includes payments for imports, specified capital account transactions, and other remittances exempt under the applicable rules.
Part D requires:
- Details of both the remitter and the remittee.
- Particulars of the remittance.
- Declaration stating that the remittance is not taxable.
- Confirmation by the remitter regarding the non-taxable nature of the payment.
Documents and Information Required for Filing Form 145
The following information and documents are required while completing Form 145:
- PAN of the remitter.
- TAN of the remitter.
- Name, address, and Tax Identification Number (TIN) of the foreign recipient.
- Country of residence of the remittee and Tax Residency Certificate (TRC), where DTAA benefits are claimed.
- Remittance amount, currency, and RBI purpose code.
- Nature of income selected from the prescribed list of 65 remittance categories.
- Seven-digit BSR Code of the bank branch through which the remittance is made.
- ITDREIN (Income Tax Department Reporting Entity Identification Number) of the remitter.
- TDS details, including applicable rate, amount deducted, and deduction date.
- Details of the Authorised Dealer (AD) bank, if required.
- For Part B, the Assessing Officer’s certificate or order under Section 395(1) or 395(2).
- For Part C, the acknowledgement number and UDIN of Form 146 issued by the Chartered Accountant.
How to File Form 145 Online – Step-by-Step Process
Form 145 can be submitted either online through the Income Tax e-Filing Portal or offline using the downloadable utility. The online filing method is generally preferred.
Filing Part A, Part B, and Part D
- Log in to the Income Tax e-Filing Portal using your User ID and password.
- From the dashboard, navigate to e-File > Income Tax Forms > File Income Tax Forms.
- Select Forms as per Income Tax Act, 2025.
- Search for and choose Form 145.
- Select Online as the filing mode, choose the relevant Tax Year, and click Continue.
- Click Let’s Get Started and select the applicable part—Part A, Part B, or Part D.
- Enter all mandatory information, including remitter details, remittee details (along with TIN), remittance information, nature of income, and TDS details.
- Review all information on the preview page before submission.
- Proceed with e-verification using either DSC or EVC.
- Submit the form and download the acknowledgement receipt.
- Provide the filed Form 145 and acknowledgement to the Authorised Dealer (AD) bank before the remittance is processed.
Filing Part C (Form 146 Required)
- Add your Chartered Accountant on the Income Tax portal by navigating to My Account > Authorised Partners > My Chartered Accountants > Add CA, and enter the CA’s membership number while selecting Form 146.
- The Chartered Accountant logs into the portal and files Form 146, certifying the taxability, DTAA applicability, and TDS rate.
- The CA verifies Form 146 using a Digital Signature Certificate (DSC).
- Log back into the portal and select File Form 145 > Part C.
- Enter the acknowledgement number of the verified Form 146. The system will automatically populate the relevant details.
- Complete the remaining fields, review the information, verify electronically, and submit the form.
- Submit the filed Form 145 along with the acknowledgement receipt to the Authorised Dealer (AD) bank.
What is Form 146 and How is it Connected to Form 145?
Form 146 is the Chartered Accountant’s certificate prescribed under the Income Tax Act, 2025, replacing the earlier Form 15CB. It is issued by a Chartered Accountant registered on the Income Tax e-Filing Portal and certifies the following:
- The purpose and nature of the remittance.
- Whether the payment is taxable under the Income Tax Act, 2025.
- Taxability under the applicable Double Taxation Avoidance Agreement (DTAA), wherever relevant.
- The applicable TDS rate along with the amount of tax to be deducted.
- Details of the Tax Residency Certificate (TRC) of the recipient.
- The Unique Document Identification Number (UDIN) for verification of the certificate.
Form 146 is applicable only in cases covered under Part C of Form 145, where taxable remittances exceed ₹5 lakh and the remitter does not possess a certificate issued by the Assessing Officer.
Form 145 vs Form 15CA – Comparison
| Parameter | Form 15CA (Earlier) | Form 145 (Current) |
|---|---|---|
| Applicable Law | Income Tax Act, 1961 | Income Tax Act, 2025 |
| Governing Sections | Sections 195, 271-I | Sections 393, 395, 397, 462 |
| Relevant Rule | Rule 37BB | Rule 220 |
| Corresponding CA Certificate | Form 15CB | Form 146 |
| UDIN Requirement | Not mandatory | Mandatory |
| Remittee TIN | Not required | Mandatory |
| Remittance Classification | RBI Purpose Code | 65 predefined remittance categories |
| Filing Exemptions | 28 categories | 33 categories |
| Electronic Submission to AD Bank | Not available | Available |
| Applicability | Up to 31 March 2026 | Effective from 1 April 2026 |
| Filing Method | Online / Offline | Enhanced Online / Offline |
| Withdrawal Period | Within 7 days | Within 7 days |
Penalties for Failure to File Form 145
Submitting Form 145 is a mandatory requirement under the Income Tax Act, 2025. Failure to comply may result in the following consequences:
- A penalty of up to ₹1 lakh may be imposed under Section 462 of the Income Tax Act, 2025, for failure to file Form 145 or for furnishing incorrect information.
- The Authorised Dealer (AD) bank will not process the foreign remittance without the acknowledgement of Form 145, preventing the transaction from being completed.
- If TDS is deducted incorrectly or not deducted where applicable, the resulting shortfall may be treated as a tax default and may attract tax demands and interest under Section 220.
- The same penalty provisions apply for submitting inaccurate information, even if the form has been filed.
Important Due Dates for Form 145
| Event | Responsible Person | Due Date |
| Filing Form 145 (Parts A, B & D) | Remitter (Taxpayer) | Before every remittance; no annual due date |
| Filing Form 145 – Part C | Remitter (after Form 146 is uploaded by the CA) | Before each taxable remittance exceeding ₹5 lakh |
| Filing Form 146 (CA Certificate) | Chartered Accountant | Before the remitter files Part C of Form 145 |
| Withdrawal of Form 145 | Remitter | Within 7 days from the date of submission |
(FAQs) – Form 145 Income Tax 2025: Purpose, Applicability & Form 15CA Substitution
1. What is Form 145 under the Income Tax Act?
Form 145 is a compliance form introduced to simplify the reporting of specified foreign remittances and replace the existing Form 15CA for eligible transactions.
2. Why was Form 145 introduced?
Form 145 aims to streamline the foreign remittance reporting process, reduce compliance burden, and improve transparency in cross-border payments.
3. Is Form 145 replacing Form 15CA?
Yes, Form 145 is intended to substitute Form 15CA for notified foreign remittance transactions, subject to the applicable rules and notifications.
4. What was the purpose of Form 15CA?
Form 15CA was a declaration filed before making payments to non-residents, providing details of the remittance and applicable tax deduction requirements.
5. Who is required to file Form 145?
Residents, businesses, companies, LLPs, and other persons making specified payments to non-residents may be required to file Form 145, depending on the applicable provisions.
6. Is Form 15CB still required after the introduction of Form 145?
The requirement for a Chartered Accountant’s certificate depends on the nature of the remittance and the applicable tax provisions. Taxpayers should refer to the latest Income Tax Rules.
7. What types of foreign remittances are covered under Form 145?
Payments such as royalties, technical service fees, consultancy fees, interest, commissions, professional fees, and other specified remittances may be covered.
8. Is Form 145 applicable to individuals as well as companies?
Yes, Form 145 may apply to both individuals and business entities making eligible foreign remittances.
9. Can DTAA benefits be claimed while filing Form 145?
Yes, taxpayers may claim benefits under the applicable Double Taxation Avoidance Agreement (DTAA), subject to fulfilling the prescribed conditions and documentation requirements.
10. What information is required in Form 145?
The form generally requires details of the remitter, non-resident recipient, nature of payment, remittance amount, taxability, TDS details, and applicable treaty benefits.
11. Is Form 10F required along with Form 145?
Where DTAA benefits are claimed, Form 10F and a valid Tax Residency Certificate (TRC) may be required, depending on the applicable provisions.
12. Can Form 145 be filed online?
Yes, Form 145 is expected to be filed electronically through the Income Tax Department’s designated e-filing portal.
13. What happens if Form 145 is not filed when required?
Failure to comply may result in delays in foreign remittances, penalties, interest, or other consequences under the Income Tax Act.
14. What documents should be maintained for Form 145 compliance?
Taxpayers should retain invoices, agreements, bank records, tax calculation sheets, TRC, Form 10F, and any CA certificates required under the law.
15. Does Form 145 apply to all foreign payments?
No, the applicability depends on the nature of the remittance and the provisions notified under the Income Tax Act and related rules.
16. How does Form 145 benefit taxpayers?
It simplifies reporting, reduces paperwork, improves compliance efficiency, and creates a more streamlined foreign remittance process.
17. Can businesses file Form 145 for multiple remittances?
Yes, businesses making multiple eligible foreign remittances may be required to comply with Form 145 filing for each applicable transaction, as prescribed.
18. Is TDS still applicable after the introduction of Form 145?
Yes, Form 145 does not eliminate TDS obligations. Tax must still be deducted wherever required under the Income Tax Act.
19. How does Form 145 impact international business transactions?
It aims to simplify compliance while ensuring accurate reporting and tax deduction for cross-border payments made to non-residents.
20. Why should businesses seek professional assistance for Form 145 compliance?
Professional guidance helps ensure correct tax determination, DTAA eligibility, accurate documentation, timely filing, and compliance with the latest foreign remittance regulations.