Indians sending money abroad for various purposes must now comply with new income tax forms 145 and 146, which have replaced the previous Forms 15CA and 15CB under the Income-Tax Act, 2025 framework. According to the income tax department's guidelines, these forms must be submitted before making a payment to a non-resident or foreign entity, and banks may require them before processing international transfers. As reported by Mint, Form 145 is a new declaration form that needs to be filled by anyone making a foreign payment and must be submitted before the money is sent.
Form 145 serves as a declaration form that includes critical details such as the purpose of the remittance, the amount being transferred overseas, and applicable tax deduction details. According to the income tax department's website, the form helps the income tax department understand why money is being sent and whether any tax needs to be paid on it. The form requires a registered user of the e-Filing portal with valid user ID and password, and in some cases, a Chartered Accountant must first provide Form 146 before filing Form 145. Form 145 can be submitted in both online and offline modes on the Income Tax portal.
Form 146 is issued by a Chartered Accountant to confirm whether tax applies on foreign payments and whether proper TDS has been deducted. As reported by Mint, the CA will also verify Double Taxation Avoidance Agreement (DTAA) guidelines for the money being sent abroad. If the transaction is above the prescribed limit of ₹5 lakh with tax implications, Form 146 must be obtained before filing Form 145. The form requires CA registration in the e-Filing portal with active status and valid DSC, with the taxpayer assigning Form 146 to the CA.
Under the updated rules, foreign remittances must be reported and tax compliance, wherever applicable, must be ensured before the money leaves the country. According to Mint, the earlier reporting system has been replaced with the new Forms 145 and 146, which will now be used for disclosures and certification related to foreign remittance. Foreign remittances are monitored by the Indian government for tax compliance, and providing incorrect or incomplete documentation can lead to delays in transfers or attract additional scrutiny at the bank level. The new forms aim to streamline the reporting process and ensure taxpayers fill the correct form before making any foreign payment.
