If you are planning to send money overseas this year, the compliance process has become more structured. The Income Tax Department has introduced new reporting norms, replacing the earlier Forms 15CA and 15CB with Forms 145 and 146.
The move aims to tighten disclosures, improve transparency and ensure accurate tax deduction at source (TDS) for foreign remittances.
Forms 15CA and 15CB replaced by Forms 145 and 146
Mandatory disclosure before certain overseas transfers
Greater scrutiny by banks and authorised dealers
Focus on accurate TDS and compliance
Form 145 is a self-declaration filed by the remitter before sending money abroad.
Nature and purpose of the payment
Total amount being remitted
TDS applicability and deduction details
Full details of sender and recipient
This form is generally required for most foreign remittances.
Form 146 is a certification issued by a Chartered Accountant in specific cases.
Confirms whether the payment is taxable in India
Specifies relevant provisions under tax law
Certifies the correct TDS rate
It is required where professional verification is mandated.
You may need to submit these forms if you are:
Sending money to an NRI or foreign entity
Making payments such as royalty, consultancy fees or commissions
Undertaking transactions where banks seek tax compliance proof
If the remittance is not taxable in India
If CA certification is not required under the rules
Foreign remittances are closely monitored by tax authorities
Errors or incomplete documentation can delay transactions
Banks may hold or scrutinise payments without proper filings
Check whether only Form 145 is sufficient or both forms are required
Ensure correct TDS compliance before initiating transfer
Consult a tax professional for complex transactions
With tighter oversight on overseas payments, getting the paperwork right is essential to avoid delays and ensure smooth fund transfers.
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