The Income Tax Department has announced a nationwide exercise to examine overseas remittances flagged as potentially suspicious.
The move has also drawn attention to Form 15CB, the accountant’s certificate prescribed for certain remittances under the Income Tax Rules, 1962. Under the new tax framework, the corresponding certificate is Form 146 under the Income Tax Rules, 2026.
But what exactly is Form 146, when is it required, and how can taxpayers use it? Here are the details.
Form 146 is a Chartered Accountant’s certificate for certain taxable payments made to a Non-Resident Indian (NRI) or a foreign company. It helps determine whether the payment is taxable in India and how much TDS should be deducted before the money is sent abroad.
It is an event-based form, which means a separate Form 146 is required for every remittance that meets these conditions.
For remittances from 1 April 2026, Forms 145 and 146 under the new tax framework apply. It is a professional certification mechanism to establish the tax treatment and TDS liability of eligible taxable foreign remittances.
The taxpayer does not file Form 146 directly. Instead, the taxpayer assigns it to a Chartered Accountant registered on the e-filing portal.
The CA examines the payment, its taxability under Indian law, the applicability of a Double Taxation Avoidance Agreement (DTAA), and the TDS liability.
The process involves first assigning the form to a CA and then having the CA complete and verify it.
The CA may need documents such as invoices, agreements or contracts, details of the remittance, and bank information. If DTAA benefits are claimed, documents such as the Tax Residency Certificate (TRC) may also be required.
After submission, taxpayers can view the filed Form 146 on the e-filing portal.
The acknowledgement number from Form 146 is used while filing Form 145, Part C, for the relevant remittance. Once Form 145, Part C is successfully filed, the corresponding Form 146 is marked as “Consumed”.
Each Form 146 can be used only once to file the corresponding Form 145.
Form 145 must be filed by the person making the foreign remittance before the payment is made. However, it is not required for certain exempt transactions, including eligible individual remittances under the RBI’s Liberalised Remittance Scheme.
Disclaimer: This is only for informational and educational purposes. Please consult a qualified expert for the latest laws and regulations.