What the certificate covers
Form 146 records the remitter and the payee, the nature and purpose of the payment, whether it is chargeable to tax in India, the provision of the Act or the treaty that applies, the rate at which tax has been deducted, and why. The CA certifies it after examining the agreement, invoices and — where treaty relief is claimed — the payee's Tax Residency Certificate and Form 41 (earlier Form 10F).
The bank will not remit until the declaration in Form 145 is filed on the income-tax portal. Getting the tax position wrong exposes the Indian payer, not the foreign payee, to the tax, interest and a disallowance of the expense.
Which part of Form 145 applies
| Part | When it applies | CA certificate? |
|---|---|---|
| Part A | Taxable payment, aggregate to the payee in the year up to ₹5 lakh | No |
| Part B | Taxable payment above ₹5 lakh, with an Assessing Officer's certificate or order | No — the AO's certificate is used |
| Part C | Taxable payment above ₹5 lakh, without an AO's certificate | Yes — Form 146 |
| Part D | Payment not chargeable to tax in India | No |
Some payments of a specified nature — certain imports, and remittances covered by the exemption list in the rules — don't need these forms at all. We check the list before preparing anything.
Documents required
- Invoice, agreement or contract for the payment.
- Details of the remitter (PAN, address) and the payee (name, country, address).
- Nature and purpose of the remittance, and the RBI purpose code.
- For treaty relief: the payee's Tax Residency Certificate, Form 41 (earlier 10F), and a no-permanent-establishment declaration where relevant.
- Bank details and the amount in foreign currency.
- Any Assessing Officer's certificate for lower or nil deduction.
How we handle it
Understand the payment
Services, royalty, interest, dividend, reimbursement, purchase of goods — the nature decides everything that follows.
Decide taxability
Under the Act first, then under the treaty with the payee's country, whichever is more beneficial, subject to the documents the treaty route needs.
Confirm the rate and deduct
Where tax is deductible, it's deducted and deposited before the remittance.
Certify in Form 146
We prepare and sign the certificate on the portal with a UDIN.
File Form 145
The remitter files the declaration, and the acknowledgement goes to the bank with the remittance request.
Practical notes from our engagements
- Treaty rate claimed without a TRC. Treaty benefits need the payee's Tax Residency Certificate and Form 41. Without them, the Act's rate applies.
- Services treated as not taxable by default. Technical services and royalties are often taxable in India under both the Act and the treaty. We look at the specific treaty article.
- Grossing up overlooked. If the Indian payer bears the tax, the payment is grossed up and tax computed on the grossed-up amount.
- Split invoices to stay under ₹5 lakh. The threshold is aggregate payments to the payee in the year, not per invoice.
How we handle foreign remittance certification
We review the contract and the treaty position, deduct and deposit tax where required, certify Form 146 and help you file Form 145, so the bank has everything it needs in one go. Every certificate we issue carries a UDIN — the Unique Document Identification Number ICAI has required on certificates signed by practising Chartered Accountants since 2019. The recipient can check it at udin.icai.org.
Related services
Frequently asked questions
What replaced Form 15CB and Form 15CA?
From 1 April 2026, Form 15CB is Form 146 and Form 15CA is Form 145, under the Income-tax Rules, 2026. Remittances before that date used the old forms.
When is a CA certificate required for a foreign remittance?
When the payment is chargeable to tax in India, aggregate payments to the payee in the year exceed ₹5 lakh, and there's no Assessing Officer's certificate. Form 145 is then filed in Part C with the CA's Form 146.
Is Form 146 needed if the payment isn't taxable in India?
No. Non-taxable payments are reported in Part D of Form 145, and some specified payments don't need either form.
Can treaty rates be applied?
Yes, where they're more beneficial than the Act — provided the payee gives a Tax Residency Certificate and Form 41 (earlier Form 10F).
Who bears the tax if it isn't deducted correctly?
The Indian payer. Tax not deducted can be recovered from the payer with interest, and the expense can be disallowed.
Can a CA issue Form 146 without seeing the agreement?
Not responsibly. The nature of the payment, and therefore its taxability, comes from the agreement and invoices.