With the implementation of the Income-tax Act, 2025 and the Income Tax Rules, 2026, the compliance process for foreign remittances has been updated. Effective 1 April 2026, Form 145 and Form 146 have replaced the earlier Form 15CA and Form 15CB, respectively. These revised forms are used for reporting specified remittances made outside India and help ensure compliance with Indian tax laws before funds are transferred abroad.
Whether you are an NRI, OCI, resident individual, or business making overseas payments, understanding the purpose and applicability of these forms is essential for a hassle-free repatriation process.
Understanding Repatriation of Funds
Repatriation of funds refers to the transfer of money from India to a bank account outside India. Such remittances may arise from various transactions, including:
- Sale proceeds of immovable property.
- Rental income earned in India.
- Redemption of investments.
- Inheritance or gifted funds.
- Payments to foreign vendors or consultants.
- Other outward remittances permitted under applicable laws.
Before processing many of these remittances, authorized banks verify compliance with the Income Tax Rules, including the filing of the prescribed forms wherever applicable.
What Is Form 145?
Form 145 is the declaration required to be furnished for specified foreign remittances. It replaces the earlier Form 15CA and contains information regarding the remitter, recipient, nature of payment, and taxability of the remittance.
Depending on the nature and value of the transaction, Form 145 is divided into four parts:
- Part A – For taxable remittances where the aggregate amount during the tax year does not exceed ₹5 lakh.
- Part B – For taxable remittances exceeding ₹5 lakh, where an order or certificate has been obtained from the Assessing Officer.
- Part C – For taxable remittances exceeding ₹5 lakh, where a Chartered Accountant issues Form 146.
- Part D – For specified remittances that are not chargeable to tax in India, subject to the prescribed conditions.
The applicable part depends on the nature of the remittance and the relevant tax provisions.
What Is Form 146?
Form 146 replaces the earlier Form 15CB and is a certificate issued by a Chartered Accountant after examining the tax implications of the proposed remittance.
The certificate generally includes:
- Details of the remitter and recipient.
- Nature and purpose of the remittance.
- Applicable provisions of the Income-tax Act.
- DTAA applicability, where relevant.
- Taxability of the payment.
- Applicable TDS provisions and tax rate.
Form 146 assists authorized dealers and taxpayers in ensuring that the remittance complies with Indian tax laws before funds are transferred outside India.
When Are Form 145 and Form 146 Required?
These forms may be required for several outward remittances, including:
- Repatriation of property sale proceeds.
- Transfer of funds from an NRO account.
- Professional or consultancy fees paid to non-residents.
- Royalty or technical service payments.
- Commission payments to foreign entities.
- Other taxable payments made outside India.
The requirement depends on the nature of the transaction, applicable tax provisions, and the prescribed compliance requirements.
Documents Commonly Required
The supporting documents may vary depending on the transaction, but generally include:
- PAN of the remitter.
- Passport and identity documents, where applicable.
- Bank account details.
- Purpose of remittance.
- Sale deed or supporting agreements.
- Capital gains computation, where applicable.
- Tax payment or TDS details.
- Relevant financial documents supporting the transaction.
Banks may request additional documentation based on the specific nature of the remittance.
Key Changes Under the Income Tax Rules, 2026
Some of the important changes introduced from 1 April 2026 include:
- Form 145 replaces Form 15CA.
- Form 146 replaces Form 15CB.
- Revised numbering of forms under the Income Tax Rules, 2026.
- Continued compliance requirements for specified foreign remittances.
- Streamlined reporting framework under the Income-tax Act, 2025.
While the form numbers have changed, taxpayers must continue to determine the taxability of the remittance and comply with applicable TDS provisions before initiating the transfer.
Common Mistakes to Avoid
During the repatriation process, taxpayers should avoid:
- Filing the incorrect part of Form 145.
- Assuming every remittance requires Form 146.
- Ignoring the taxability of the remittance.
- Providing incomplete supporting documents.
- Delaying tax compliance until the remittance is initiated.
- Referring to the old Forms 15CA and 15CB instead of the revised forms.
Conclusion
Form 145 and Form 146 are important compliance documents for specified foreign remittances under the Income Tax Rules, 2026. Understanding when these forms apply, maintaining accurate documentation, and complying with applicable tax provisions can help ensure a smooth and timely repatriation of funds. Whether the remittance relates to property sale proceeds, investment income, rental income, or payments to non-residents, proper compliance can help minimize delays and facilitate the transfer process.
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Disclaimer: Aim of this article is to give basic knowledge about the topic to people who are not in touch with Indian tax norms. When anybody is dealing with these kinds of cases practically, he shall consider all relevant provisions of all applicable Laws like FEMA/Income Tax/RBI /Companies Act etc.