Form 145 Income Tax 2025 — Complete Guide

Purpose | Parts A–D | How to File | Form 146 | Replacing Form 15CA | Penalties | Exemptions

Under Sections 393, 395, 397 & 462 of the Income Tax Act, 2025 | Rule 220 of IT Rules, 2026 | Effective 1 April 2026

Form 145 income tax  |  Form 15CA replaced  |  foreign remittance India  |  Form 145 vs 15CA  |  Form 146 CA certificate  |  Section 395 Income Tax Act 2025  |  TDS on foreign payment  |  DTAA remittance India  |  how to file Form 145  |  non-resident payment TDS India

🚨 EFFECTIVE 1 APRIL 2026: Form 15CA has been replaced by Form 145 under the Income Tax Act, 2025. Any foreign remittance after 1 April 2026 requires Form 145 — not Form 15CA. Your bank (Authorised Dealer) will not process the remittance without a valid Form 145 acknowledgement.

Every foreign remittance from India — whether a professional fee to an overseas consultant, dividends to a foreign shareholder, software licensing payments, or investment abroad — triggers a mandatory compliance obligation under Indian income tax law. From 1 April 2026, this obligation is governed by Form 145 under the Income Tax Act, 2025, which replaces the earlier Form 15CA under the Income Tax Act, 1961.

Form 145 is not merely a procedural rename. It brings structural changes — a four-part format, expanded exemptions (33 categories vs 28 earlier), mandatory TIN of the foreign recipient, 65 predefined remittance categories, electronic delivery to the Authorised Dealer bank, and UDIN-mandatory CA certificates (Form 146). Understanding Form 145 is now non-negotiable for every Indian company, individual, or entity making payments to non-residents. This guide by TaxGen Solutions covers every aspect — from who must file, to how to file, to the penalties for non-compliance.

  01    WHAT IS FORM 145?

Form 145 is a mandatory declaration filed by any person responsible for making a payment to a non-resident or a foreign company before such remittance is made outside India. It is governed by Sections 393, 395, 397, and 462 of the Income Tax Act, 2025 and Rule 220 of the Income Tax Rules, 2026.

The purpose of Form 145 is to ensure the Income Tax Department is informed of every foreign remittance, the TDS deducted on such payment, and the nature of income — so that no taxable foreign income escapes the tax net. The Authorised Dealer bank will not process the remittance unless Form 145 has been filed and its acknowledgement is presented.

Old vs New — Form 15CA to Form 145

  02    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 was a self-declaration document required to be filed before a foreign remittance to a non-resident or a foreign company. It was the primary mechanism through which the Income Tax Department tracked TDS compliance on cross-border payments.

Why Did the Government Replace It?

With the Income Tax Act 2025 superseding the Income Tax Act 1961 with effect from 1 April 2026, all forms issued under the old Act have been replaced to align with the modernised compliance framework. Form 145 is not merely a renaming — it incorporates the following structural improvements:

●       Mandatory TIN (Tax Identification Number) of the foreign recipient — not required earlier

●       65 predefined remittance categories — replacing the earlier open RBI Purpose Code system

●       Expanded exemption list: 33 categories (up from 28 under Form 15CA)

●       Electronic delivery of the filed form directly to the Authorised Dealer bank — now enabled

●       UDIN mandatory on the CA certificate (Form 146) — enhancing authenticity of CA certifications

●       Four structured parts (A, B, C, D) matching different remittance scenarios more precisely

  03    WHO MUST FILE FORM 145?

Form 145 must be filed by every person responsible for paying a non-resident or a foreign company before remitting funds outside India, as per Rule 220 of the Income Tax Rules, 2026. This is a broad and inclusive requirement:

⚠️ Transaction-by-Transaction: Every individual remittance requires a separate Form 145. You cannot submit one Form 145 for multiple payments to the same recipient. There is no annual consolidated filing option — Form 145 is an event-based filing obligation.

  04    WHEN IS FORM 145 NOT REQUIRED? — EXEMPTIONS

Complete Exemption List

Not every foreign remittance triggers the Form 145 requirement. The following categories are exempted:

●       Every foreign remittance made by an individual, for a sum that is NOT chargeable under the Income Tax Act, 2025, and which does not require prior RBI approval — is exempt from Form 145

●       Transactions undertaken by IFSCs (International Financial Services Centres) under Section 147 of the Income Tax Act, 2025 — are exempt from Form 145 requirements

Additionally, the following 33 RBI Purpose Code-based transactions are exempt if they are not chargeable under the Income Tax Act, 2025:

  05    FOUR PARTS OF FORM 145 — COMPLETE BREAKDOWN

Understanding the Four Parts of Form 145

Form 145 has four distinct parts, each designed for a specific remittance scenario. Selecting the correct Part is critical — the wrong Part will result in a defective or non-compliant filing.

Part A applies when the remittance is taxable under the Income Tax Act, 2025, and the total remittances to that recipient during the tax year do not exceed ₹5 lakh. Part A requires:

●       Particulars of the remitter: name, PAN, address, contact details

●       Particulars of the remittee: name, address, TIN in country of residence

●       Details of remittance: amount, currency, country, bank details, BSR code

●       Nature of income: selected from the list of 65 remittance categories

●       TDS details: applicable rate, amount deducted, and date of deduction

●       RBI Purpose Code for the transaction

●       Declaration and signature of the remitter

Part B applies when the remittance is taxable, the aggregate amount exceeds ₹5 lakh during the tax year, and a lower tax deduction certificate has been obtained from the Assessing Officer (AO) under Section 395 of the Income Tax Act, 2025. Part B includes all fields from Part A, plus:

●       Details of the AO certificate / lower TDS order obtained

●       Section and rate of TDS as specified in the AO certificate

Part C is the most commonly used section for large business remittances. It applies when the remittance is taxable, the aggregate exceeds ₹5 lakh, and a certificate from a Chartered Accountant (Form 146) has been obtained instead of an AO order. Part C additionally requires:

●       Details of the Chartered Accountant who has issued Form 146

●       Acknowledgement number of the verified Form 146

●       UDIN (Unique Document Identification Number) of the CA certificate — mandatory under new Act

●       Taxability assessment under the Income Tax Act, 2025 — without DTAA consideration

●       Taxability under the applicable DTAA (Double Taxation Avoidance Agreement), if any — including relevant article and treaty rate

●       Tax Residency Certificate (TRC) details if DTAA benefits are being claimed

●       Form 41 (lower TDS application), if applicable

Part D is filed when the remittance is NOT taxable under the Income Tax Act, 2025 — for example, payments for goods (imports), certain capital account transactions, or remittances specifically exempted by rule. Part D contains:

●       Particulars of the remitter and remittee

●       Details of the remittance amount, purpose, and country

●       Declaration confirming the non-taxability of the remittance

●       Declaration by the remitter confirming non-taxability with the basis for that conclusion

Quick Reference — Which Part of Form 145 to Use?

  06    DOCUMENTS REQUIRED FOR FORM 145

Documents and Information Required to File Form 145

  07    HOW TO FILE FORM 145 ONLINE — STEP BY STEP

Form 145 can be filed in two modes: online through the Income Tax e-filing portal at www.incometax.gov.in, or offline using the downloadable utility. The online mode is recommended for most users.

Filing Form 145 (Parts A, B, and D) — No CA Certificate Required

Filing Form 145 Part C — CA Certificate (Form 146) Required

📌 Withdrawal Window: If you filed Form 145 but need to cancel it (e.g., the remittance was not made), you can withdraw the submitted form within 7 days of filing. After 7 days, the form cannot be withdrawn.

  08    FORM 146 — THE NEW CA CERTIFICATE

What is Form 146 and How Does It Relate to Form 145?

Form 146 is the Chartered Accountant certificate under the Income Tax Act, 2025. It is the direct replacement of the earlier Form 15CB. Form 146 is issued by a CA registered on the Income Tax e-filing portal and is required exclusively for Part C of Form 145 — i.e., taxable remittances above ₹5 lakh where the remitter does not have an AO-issued certificate.

What Does Form 146 Certify?

●       The nature and purpose of the remittance

●       Taxability of the payment under the Income Tax Act, 2025

●       Taxability under the applicable DTAA (Double Taxation Avoidance Agreement)

●       Applicable TDS rate and the amount to be deducted

●       Details of the Tax Residency Certificate (TRC) of the remittee

●       UDIN (Unique Document Identification Number) — mandatory for CA certificate authenticity verification under the new Act

  09    FORM 145 vs FORM 15CA — COMPREHENSIVE COMPARISON

  10    KEY DUE DATES & PENALTIES

Key Due Dates and Penalties for Form 145

Due Dates

Penalties for Non-Compliance

⚠️ Filing Form 145 is NOT optional — it is a legal requirement under the Income Tax Act, 2025. The consequences of non-compliance are clear and immediate:

  11    TAXGEN SOLUTIONS — FORM 145 & FOREIGN REMITTANCE SERVICES

TaxGen Solutions — Form 145 Filing & Foreign Remittance Compliance

Filing Form 145 correctly involves understanding TDS rates under both Indian domestic law and the applicable DTAA, obtaining and verifying the Tax Residency Certificate of the foreign recipient, coordinating with a Chartered Accountant for Form 146, and ensuring the Authorised Dealer bank receives the correct acknowledgement before processing the remittance. A single error — wrong TDS rate, missing TIN, or incorrect Part selection — can block the transaction and trigger penalties.

At TaxGen Solutions, our expert CAs handle end-to-end Form 145 compliance for Indian companies, individuals, and NRIs — from DTAA analysis and TRC verification, to CA certification (Form 146) and portal filing. Visit taxgensolutions.com or write to support@taxgensolutions.com for a free consultation.

🏆 TaxGen Solutions — Form 145 Services: DTAA analysis • TDS rate determination • Form 146 (CA certificate) • Form 145 online filing • TRC verification • AO certificate (Section 395) assistance • Foreign remittance TDS compliance • ITR filing for NRIs and companies. Visit taxgensolutions.com.

Frequently Asked Questions (FAQs)

Form 145 Income Tax Act 2025  |  Foreign Remittance  |  Form 15CA Replacement  |  TaxGen Solutions

  Q1. Has Form 15CA been replaced? What is the new form?

Yes. Form 15CA has been replaced by Form 145 with effect from 1 April 2026. Form 145 is governed by Sections 393, 395, 397, and 462 of the Income Tax Act, 2025 and Rule 220 of the Income Tax Rules, 2026. Any foreign remittance after 1 April 2026 must be reported using Form 145. The earlier Form 15CA was under Section 195(6) of the Income Tax Act, 1961. TaxGen Solutions handles Form 145 filings for all types of foreign remittances.

  Q2. What is Form 145 under the Income Tax Act 2025?

Form 145 is a mandatory declaration filed by any person making a payment to a non-resident or foreign company before such remittance is sent outside India. It is required under Rule 220 of the Income Tax Rules, 2026. The purpose is to ensure TDS compliance on foreign remittances and enable the Income Tax Department to track cross-border income flows. The Authorised Dealer bank will not process any foreign remittance without a valid Form 145 acknowledgement.

  Q3. Who is required to file Form 145?

Any person responsible for paying a non-resident or foreign company before remitting funds outside India must file Form 145. This includes Indian companies paying fees, royalties, dividends, or interest to foreign entities; Indian individuals remitting money for services or investments; businesses paying overseas consultants or software vendors; and banks and financial institutions making payments on behalf of clients to non-residents. The obligation applies per transaction — one form per remittance.

  Q4. What are the four parts of Form 145 and which one should I use?

Form 145 has four Parts: Part A — taxable remittances up to ₹5 lakh (self-declaration by remitter); Part B — taxable remittances above ₹5 lakh where an AO certificate has been obtained under Section 395; Part C — taxable remittances above ₹5 lakh where a CA certificate (Form 146) has been obtained (most common for businesses); Part D — remittances NOT taxable under the Income Tax Act, 2025. TaxGen Solutions advises on the correct Part selection for each transaction.

  Q5. What is Form 146 and how is it related to Form 145?

Form 146 is the Chartered Accountant certificate under the Income Tax Act, 2025, replacing the earlier Form 15CB. It is issued by a CA registered on the Income Tax e-filing portal and certifies the nature of remittance, taxability under the Income Tax Act, 2025 and applicable DTAA, TDS rate, and TRC details of the remittee. Form 146 is required only for Part C of Form 145 (taxable remittances above ₹5 lakh without an AO certificate). TaxGen Solutions CAs issue Form 146 for clients.

  Q6. Is UDIN mandatory for Form 146 (new Form 15CB)?

Yes. Under the Income Tax Act, 2025, UDIN (Unique Document Identification Number) is mandatory for the CA certificate in Form 146. This was not required under the earlier Form 15CB. The UDIN ensures the authenticity of the CA certificate and prevents fraudulent issuance. The CA must generate the UDIN from the ICAI portal before submitting Form 146 on the Income Tax e-filing portal.

  Q7. What is the penalty for not filing Form 145?

The penalty for not filing Form 145, or for furnishing inaccurate information in Form 145, is up to ₹1,00,000 under Section 462 of the Income Tax Act, 2025. Additionally, if Form 145 is not filed, the Authorised Dealer bank will not process the foreign remittance — effectively blocking the transaction. If TDS is not correctly deducted, the shortfall is treated as a tax default, triggering interest under Section 220.

  Q8. Can Form 145 be withdrawn after filing?

Yes. A filed Form 145 can be withdrawn within 7 days of submission — for example, if the remittance was not ultimately made, or if the details need to be corrected. After 7 days, the form cannot be withdrawn. This 7-day window is the same as under the earlier Form 15CA regime.

  Q9. What transactions are exempt from Form 145?

33 categories of RBI Purpose Code-based transactions are exempt from Form 145 if not chargeable under the Income Tax Act, 2025. These include overseas investment in equity/debt/subsidiaries, loans to non-residents, import advance payments and settlements, business/medical/education/pilgrimage travel, postal services, Indian company operating expenses abroad, maintenance of Indian embassies, remittances by non-residents for family maintenance, personal gifts/donations, and payments for international bidding. IFSC transactions under Section 147 and individual remittances not chargeable under the Act (not requiring RBI approval) are also exempt.

  Q10. What is the TIN requirement in Form 145?

The Tax Identification Number (TIN) of the foreign recipient (remittee) is now mandatory in Form 145, under the Income Tax Act, 2025. This was not required in the earlier Form 15CA. The TIN is the tax registration number issued to the recipient in their country of residence. If the remittee does not have a TIN (some countries do not issue TINs), the equivalent tax identification document of that country must be provided. This enhances cross-border information exchange under DTAA protocols.

  Q11. What is the difference between Part C and Part B of Form 145?

Both Part B and Part C apply to taxable remittances above ₹5 lakh. The difference lies in how the TDS rate is established: Part B is used when a certificate has been obtained from the Assessing Officer (AO) under Section 395 of the Income Tax Act, 2025, specifying the applicable TDS rate or nil deduction. Part C is used when a CA certificate (Form 146) has been obtained from a Chartered Accountant instead of an AO order. Part C is more commonly used in practice as it does not require AO interaction.

  Q12. Is Form 145 required for every remittance or can I file one form for multiple payments?

Each remittance requires a separate Form 145. You cannot file one consolidated Form 145 for multiple payments to the same recipient — even if the payments are made in the same week or for the same purpose. Form 145 is an event-based, per-transaction form. There is no annual or periodic consolidated filing option. This applies to all four Parts (A, B, C, and D).

  Q13. What is a Tax Residency Certificate (TRC) and when is it required for Form 145?

A Tax Residency Certificate (TRC) is a certificate issued by the tax authority of the non-resident's country of residence, confirming their tax residency status. TRC is required in Form 145 Part C when the remitter is claiming DTAA (Double Taxation Avoidance Agreement) benefits — such as a lower TDS rate under a tax treaty. Without TRC, DTAA benefits cannot be claimed, and the domestic income tax rate (or maximum marginal rate) will apply on the remittance.

  Q14. How does Form 145 relate to DTAA?

When India has a Double Taxation Avoidance Agreement (DTAA) with the recipient's country, the TDS rate on the remittance may be lower than the domestic rate under the Income Tax Act. In Form 145 Part C, the CA (in Form 146) certifies the applicable treaty article and the concessional DTAA rate. To claim DTAA benefit, the remittee must provide a Tax Residency Certificate (TRC) and a Form 10F (declaration about the non-resident's tax status). TaxGen Solutions provides DTAA analysis and TRC verification services.

  Q15. What is the BSR code required in Form 145?

The BSR (Basic Statistical Return) Code is a 7-digit code assigned by the Reserve Bank of India to each bank branch. In Form 145, the BSR code of the bank branch from which the remittance is made must be entered. This enables the Income Tax Department to match the remittance with the TDS payment records. The BSR code of your bank branch is available from your bank or on the RBI website.

  Q16. When must the Authorised Dealer bank receive Form 145?

The Authorised Dealer (AD) bank must receive a copy of the filed Form 145 and its acknowledgement before the remittance is processed. The bank is legally required to ensure Form 145 has been filed before releasing funds to the non-resident. Under the Income Tax Act, 2025, the electronic delivery of Form 145 to the AD bank is now enabled directly through the e-filing portal — a significant improvement over the earlier manual submission process.

  Q17. Is Form 145 required for import payments?

Import payments below ₹5,00,000 (RBI Purpose Code S0190) and regular import invoice settlements (S0102) are among the 33 exempt transaction categories under Form 145 — provided they are not chargeable under the Income Tax Act, 2025. Import advances (S0101) are also in the exempt list. However, if an import payment has an embedded royalty, technical service fee, or interest component that is separately chargeable under the Act, that component may still require Form 145.

  Q18. How can TaxGen Solutions help with Form 145 compliance?

TaxGen Solutions provides comprehensive Form 145 and foreign remittance compliance services: (1) DTAA analysis — determining applicable tax treaty and TDS rate; (2) TRC verification — reviewing Tax Residency Certificates for DTAA eligibility; (3) Form 146 (CA certificate) issuance — our registered CAs certify taxability and TDS rates; (4) Form 145 online filing — correct Part selection and e-verification; (5) Section 395 AO certificate assistance; (6) NRI ITR filing and TDS on foreign payments. Contact us at taxgensolutions.com.

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This guide is for informational purposes only. Based on the Income Tax Act, 2025 and Income Tax Rules, 2026. Consult a qualified CA for personalised advice.