What are Form 145 (formerly Form 15CA) and Form 146 (formerly Form 15CB)?
Form 145 (formerly Form 15CA) is an online declaration filed by the remitter on the income-tax e-filing portal, providing details of a payment to a non-resident and the tax withheld (if any). Form 146 (formerly Form 15CB) is a certificate issued by a Chartered Accountant after examining the nature of the payment, the Income-tax Act and the applicable Double Taxation Avoidance Agreement (DTAA), certifying the taxability and rate of withholding. Together they enable the Authorised Dealer (AD) bank to release the foreign remittance.
When is Form 146 (formerly Form 15CB) required, and what are the four parts of 15CA?
Form 146 (formerly Form 15CB) is required only when the remittance is chargeable to tax in India and the aggregate of taxable remittances exceeds Rs 5 lakh in the financial year. Form 145 (formerly Form 15CA) itself has four parts:
- Part A — taxable remittance where the aggregate in the financial year does not exceed Rs 5 lakh (no 15CB required).
- Part B — taxable remittance above Rs 5 lakh where an order / certificate has been obtained from the Assessing Officer under Sections 393, 393 or 395 (formerly sections 195(2), 195(3) or 197).
- Part C — taxable remittance above Rs 5 lakh accompanied by a Form 146 (formerly Form 15CB) from a Chartered Accountant.
- Part D — remittances that are not chargeable to tax, including the 33 categories specified in Rule 37BB (no 15CB required).
What is the 15CA / 15CB process? (step by step)
- The CA determines taxability under the Act and the DTAA, the withholding rate, and any TRC / Form 41 (formerly Form 10F) / no-PE declaration required from the non-resident.
- The CA issues Form 146 (formerly Form 15CB) on the e-filing portal under DSC.
- The remitter files the relevant part of Form 145 (formerly Form 15CA), linking the 15CB acknowledgement where applicable.
- The remitter submits Form 145/146 (formerly Form 15CA / 15CB) with the A2 form, invoice and supporting documents to the AD bank, which releases the remittance.
Which remittances are exempt from 15CA / 15CB?
Rule 37BB lists 33 categories of remittances that do not require Form 145 (formerly Form 15CA) or 15CB — for example, certain imports, donations, gifts, advance payments against imports, and certain government / personal remittances. Many LRS (Liberalised Remittance Scheme) personal remittances by resident individuals also fall outside the 15CA/15CB regime. Where an exemption applies, only Part D of Form 145 (formerly Form 15CA) is filed (or no form at all, for the fully exempt categories).
What documents are needed?
- Invoice / contract / agreement supporting the remittance
- PAN of the remitter and (where available) the non-resident
- Tax Residency Certificate (TRC) of the non-resident
- Form 41 (formerly Form 10F) (now filed electronically on the e-filing portal)
- No-permanent-establishment (no-PE) declaration where treaty benefit is claimed
- Bank A2 form and FEMA purpose code
- Proof of services / goods received, where applicable