What is Form 145 and Form 146 (earlier Form 15CA and Form 15CB)?
Reviewed by CA Apurav GargLast reviewed
In short
Form 145 (earlier 15CA) is the payer's online declaration before sending money to a non-resident; Form 146 (earlier 15CB) is a chartered accountant's certificate on the tax to be deducted, needed for larger taxable payments.
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The new form numbers
From 1 April 2026, under the Income-tax Act, 2025 and the Income-tax Rules, 2026, Form 15CA is Form 145 and Form 15CB is Form 146. Rule 220 of the 2026 Rules now sets out what was in rule 37BB. The purpose and the structure of the forms are the same. Banks and older guides still use the old names.
Form 145: the payer's declaration
Anyone paying a non-resident (other than a company) or a foreign company files Form 145 online before the money is sent, and gives the acknowledgement to the bank. Which part applies depends on the payment:
| Part | When |
|---|---|
| A | Taxable in India, and the year's taxable payments to that person stay within the limit in the rules |
| B | Taxable and above that limit, and the payer holds a certificate from the Assessing Officer on the tax to deduct |
| C | Taxable and above that limit, and the payer holds a Form 146 from a chartered accountant |
| D | Not taxable in India |
Form 146: the accountant's certificate
Form 146 is needed only for Part C. The chartered accountant examines the payment under the Income-tax Act and the tax treaty with the payee's country, and certifies whether it is taxable, under which provision, and the TDS to deduct. To rely on a treaty, the payer needs the payee's tax residency certificate and treaty declaration.
Payments that need neither form
The 2026 Rules leave out:
- remittances by an individual that need no RBI approval, under the Liberalised Remittance Scheme;
- remittances by a unit in an International Financial Services Centre;
- remittances of the kinds listed by RBI purpose code in the rules, which include payments for imports.
What goes wrong
- Paying foreign software, ad-tool or freelancer bills by card without checking TDS. The forms are filed through the bank, so card payments often skip them, but the TDS obligation remains.
- Grossing up missed. If the contract says the brand bears the tax, TDS is worked out on the grossed-up amount.
- Filing Part D without basis. "Not taxable" needs a reasoned view under the Act and the treaty. Keep it on file.
Failing to file the form, or filing it wrongly, attracts a penalty under the Income-tax Act.
Example in rupees
A D2C brand makes three payments abroad in the tax year:
| Payment | Taxable in India? | What is filed |
|---|---|---|
| ₹12,00,000 to a supplier in China for imported packaging | Payment for imports falls under an RBI purpose code on the excluded list | Neither form |
| ₹3,00,000 a year to a US company for a software subscription, with no office in India | The CA concludes it is not taxable in India under the Act and the tax treaty | Form 145, Part D |
| ₹8,00,000 to a UK agency for marketing consultancy | Taxable in India; above the limit for the year | Form 146 from a CA, then Form 145, Part C |
For the third payment, the CA's Form 146 states the nature of the payment, the treaty article relied on and the TDS to deduct. The brand deducts and deposits that TDS, then files Form 145 and gives the acknowledgement to its bank, which sends the money. The figures are illustrative.
Legal reference: Income-tax Act, 2025: sections 393, 395, 397 and 462; Income-tax Rules, 2026: rule 220 (Forms 145 and 146); for payments up to 31 March 2026, Income-tax Act, 1961: section 195(6) and Income-tax Rules, 1962: rule 37BB
Related terms
Work it out for your business
Want help applying this to your own accounts?
We handle bookkeeping, GST and TDS for D2C and marketplace sellers, and can walk you through how this works in your business.
General information only, not professional advice. Rules and rates change — check the official source before you act.