Expert opinion · Cross-border tax

Form 145 and Form 146: which part applies to your foreign payment

Before your bank sends money abroad for anything other than the purchase of goods, it will usually ask for an acknowledgement from the income-tax portal. That acknowledgement is Form 145, and for larger taxable payments it rests on a chartered accountant's certificate in Form 146.

FxLayer compliance deskFEMA, RBI reporting and cross-border tax 8 min read Updated
Is the payment on the specified list, such as imports of goods?
  1. No formSpecified listImports of goods and other listed purposes need neither form
  2. Part ATaxable, within ₹5 lakhTotal payments to the payee within ₹5 lakh in the year
  3. Part BTaxable, with a certificateAbove ₹5 lakh, with an order or certificate from the tax officer
  4. Part CTaxable, above ₹5 lakhForm 146 from a chartered accountant is filed first
  5. Part DNot chargeable to taxFor example, protected by a tax treaty
Choosing the part of Form 145

Key points

  • Form 145 replaces Form 15CA and Form 146 replaces Form 15CB under the Income-tax Act, 2025.
  • Payments on the specified list, which includes imports of goods, need neither form.
  • The part of Form 145 depends on whether the payment is taxable, its size and whether a tax officer's certificate exists.
  • Form 146 is needed for Part C and is filed before Form 145, because its acknowledgement is quoted there.

What the two forms are

Any person making a payment to a non-resident has to consider whether tax should be withheld in India. Form 145 is the remitter's declaration of that payment, filed online on the income-tax e-filing portal before the money leaves. Form 146 is a certificate from a chartered accountant on the taxability of the payment, the applicable rate under the Act or a tax treaty, and the tax withheld.

From 1 April 2026 the Income-tax Act, 2025 renumbered the forms: Form 15CA became Form 145 and Form 15CB became Form 146, with the specified list of exempt purposes moving to Rule 220. Many banks and accountants still use the old names, so expect to see both.

Which payments need no form

Payments whose purpose is on the specified list need neither Form 145 nor Form 146. The list includes imports of goods (purpose codes S0101 to S0104), and other purposes such as certain travel, education and overseas office expenses. This is why an ordinary import payment goes to the bank with a request letter and Form A1, but no tax form.

Choosing the part of Form 145

  • Part A: the payment is chargeable to tax and the total paid to the payee in the financial year does not exceed ₹5 lakh.
  • Part B: the payment exceeds that limit and you hold an order or certificate from the tax officer for nil or lower deduction.
  • Part C: the payment exceeds the limit and is chargeable to tax; a Form 146 certificate from a chartered accountant is required.
  • Part D: the payment is not chargeable to tax in India, for example because a tax treaty protects it and the payee has no permanent establishment in India.

The order of filing

For a Part C payment, the chartered accountant files Form 146 first and the remitter then files Form 145, quoting the Form 146 acknowledgement. The signed acknowledgement of Form 145 goes to the bank with the payment request and Form A2. Banks will not remit without it, so build the filing time into the payment timeline, especially near month end.

Treaty papers make the difference

Where a tax treaty lowers or removes the tax, the payee's tax residency certificate, the declaration in the prescribed form and a no-permanent-establishment declaration support the treaty rate. Without them the higher rate under the Act applies, and the payment may move from Part D to Part C.

FxLayer works out whether a payment is taxable, the treaty position and the part of Form 145 before the request is raised, lays out every field of Form 145 and Form 146 in the portal's order and holds the payment request until the acknowledgements are recorded.

Questions

No. Payments on the specified list, which includes imports of goods, need no form. For other payments, the part depends on taxability and value.
A chartered accountant, on the income-tax e-filing portal, after examining the contract and invoice. The remitter then files Form 145.
No. The forms are filed before the remittance, and the bank asks for the Form 145 acknowledgement before it sends the money.
No. GST under reverse charge is a separate obligation on the import of services. It does not change whether Form 145 is needed.

This article is general information on Indian foreign exchange and tax rules as they stood on the date shown. It is not legal or tax advice. Rules and limits change; confirm the current position with your AD bank, the relevant RBI Master Direction or your adviser before acting.

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