Foreign remittances? Form 15CA and 15CB Explained

Overseas Remittances have tax ramifications that the majority of taxpayers disregard. Section 393 of IT Act 2025 (Section 195 of IT Act 1961) stipulates that tax must be deducted from any payments made to non-residents. The goal of tax deduction is to collect taxes from nonresident aliens at an earlier stage, as it may be impossible to do so later. In certain instances, the individual making payments to NRIs must submit an affidavit on Form 145 (a.k.a Form 15CA) together with Form 146 (a.k.a Form 15CB).

This document covers

1. What is Form 145 (a.k.a Form 15CA)?
2. What is Form 146 (a.k.a Form 15CB)?
3. Remittances which don't require Form 146 (a.k.a Form 15CB)
4. Remittances which don't require Form 145 & 146 (a.k.a Form 15CA & 15CB)?
5. Details required for filing Form 145 & 146 (a.k.a Form 15CA & 15CB)

1. What is Form 145 (a.k.a Form 15CA) ?

Form 145 (a.k.a Form 15CA) is a declaration of remitter (sender if money to NRI) and is considered as a tool for collecting information of payments to Non-residents. This will help the Income Tax Department to determine whether the payments are taxable or non-taxable in the hands of non-resident. Banks and Authorized dealers are now becoming more conscious in ensuring that Form 145 / 146 (a.k.a Form 15CA / 15CB) are received by them before remittance

A person who is making foreign remittance need to furnish Form 145 (a.k.a Form 15CA). It is required to be submitted online. In certain cases, a certificate from a practicing Chartered Accountant in Form 146 (a.k.a Form 15CB) is required to be submitted along with Form 145 (a.k.a Form 15CA). Form 145 (a.k.a Form 15CA)consists of 4 parts.

2. What is Form 146 (a.k.a Form 15CB) ?

The liability of withholding tax can be ascertained and certified by obtaining the certificate from Chartered Accountant in Form 146 (a.k.a Form 15CB). A CA certifies the details of payment, TDS rate, TDS deduction etc. For uploading Part C of Form 145 (a.k.a Form 15CA), an Acknowledgement number of Form 146 (a.k.a Form 15CB) is mandatory.

3. Remittances which don't require Form 146 (a.k.a Form 15CB)

Form 146 (a.k.a Form 15CB) is not required in the following cases

1. Form 146 (a.k.a Form 15CB) is not required where "Part-A" of Form 145 (a.k.a Form 15CA) is to be filled in, i.e. in case payments does not exceed Rs Five Lakhs during the financial year
2. Form 146 (a.k.a Form 15CB) is not required where a certificate from the AO u/s 197 or 195(2) / (3) has been obtained.
3. Form 146 (a.k.a Form 15CB) is not required where sum payable is not chargeable to tax under the provisions of Income Tax Act.
4. No information is required to be furnished for any sum which is not chargeable under the provision of the Act, if the remittance is made by an individual as per the provision of Foreign Exchange Management Act, 1999 read with schedule III to the Foreign Exchange (Current Account Transactions) Rules, 2000
5. No information is required to be furnished for any remittance which is of the nature specified in the list given in Rule 37BB

4. Remittances which don’t require Form 145 & 146 (a.k.a Form 15CA & 15CB) ?

Form 145 & 146 (a.k.a Form 15CA & 15CB) are not required for the transactions which does not require RBI approval. Following are the payments prescribed by RBI as per rule 37BB.

5. Details required for filing Form 145 & 146 (a.k.a Form 15CA & 15CB)

The following information is required to file Form 145 & 146 (a.k.a Form 15CA & 15CB)

1. Details of Remitter (sender)
1. Name and Address of Remitter
2. PAN of Remitter
3. Status of Remitter (Individual/ Firm/LLP/Company/Trust etc)
4. Email id and Mobile number of Remitter
2. Details of Remittee (recipient)
1. Name and Address of Remittee
2. Status of Remittee (Individual/ Firm/LLP/Company/ etc)
3. Country of the Remittee
3. Country to which Remittance is made
4. Currency in which remittance is made
5. Amount of Remittance in Indian Currency
6. Proposed date of Remittance
7. Nature of Remittance
8. Bank Details of Remitter (Name, Bank, Branch and BSR Code of Bank)

Requirement of Form 145 & 146 (a.k.a Form 15CA & 15CB) on payments to NRO bank accounts of NRI's

There are numerous incomes being paid to non-residents through their NRO accounts like interest, capital gains, rents etc. These types of incomes are liable to TDS u/s 195. As these payments are being made to NRO account and the payments are in Indian Rupee, Form 145 & 146 (a.k.a Form 15CA & 15CB) is not required

Applicability of Form 145 & 146 (a.k.a Form 15CA & 15CB) for remittance from NRO account by NRI

1. Non-resident who earns income in India through Rental Income, Bank interest, Sale of properties/shares etc and the same is being credit to his NRO account then the non-resident may transfer such amount from NRO account to NRE account.
2. Before transferring the same from NRO to NRE Account, the non-resident is required to file Form 145 / 146 (a.k.a Form 15CA / 15CB) accordingly depending on the nature of transaction