Introduction
With the rollout of the Income Tax Act, 2025, India's tax compliance framework is undergoing a structural transformation. One of the key updates is the introduction of Form 146, which replaces the earlier Form 15CB and plays a crucial role in foreign remittance compliance. The Income Tax Department has released detailed FAQs to help taxpayers and professionals understand its applicability, purpose and filing process.
What is Form 146?
Form 146 is an Accountant's Certificate required for taxable payments made to non-residents or foreign companies. It is used to certify the taxability of such remittances and ensure proper deduction of TDS before funds are sent abroad.
In simple terms, it acts as a compliance checkpoint where a Chartered Accountant verifies whether the payment is taxable in India and whether the correct tax has been deducted.
When is Form 146 Required?
Form 146 becomes mandatory when:
- The payment is made to a non-resident or foreign company and
- The remittance is taxable and
- The amount exceeds Rs 5 lakh in a financial year and
- No certificate has been obtained from the Assessing Officer.
It is an event-based form, meaning it must be filed for each qualifying remittance transaction.
Who Can File Form 146?
Only a Chartered Accountant (CA) can certify and file Form 146. However, the CA must:
- Be registered on the income tax e-filing portal
- Be assigned the form by the taxpayer through Form 145 (Part C)
- Use a valid Digital Signature Certificate (DSC) for verification
Purpose of Form 146 Certification
The certification ensures that:
- The remittance complies with taxability provisions under the Income Tax Act
- Applicable provisions of Double Taxation Avoidance Agreements (DTAA) are considered
- Correct TDS rates are applied
Essentially, it helps determine the tax liability on cross-border payments before money is remitted.
Link with Form 145
Form 146 is not standalone, it is linked to Form 145 (Part C), which is the declaration for foreign remittance.
- Taxpayer files Form 145
- CA certifies details via Form 146
- Both together ensure compliance before remittance
Key Features of Form 146
- Replaces Form 15CB under the new tax regime
- Covers detailed remittance information including sender, recipient and purpose
- Includes taxability under both domestic law and DTAA
- Requires reporting of TDS details and verification by CA
No Fixed Due Date - But Timing Matters
There is no specific deadline for filing Form 146. However, it must be submitted before the remittance is made to ensure compliance and avoid penalties.
Compliance Steps for Taxpayers
To avoid delays or penalties, taxpayers should:
- Assign a CA on the e-filing portal before initiating remittance
- Ensure proper classification of the payment nature
- Maintain documentation for DTAA benefits (if applicable)
- Verify TDS calculations before submission
Conclusion
The introduction of Form 146 under the Income Tax Act, 2025 reflects the government’s focus on streamlined, transparent, and technology-driven compliance. While the form largely mirrors the earlier Form 15CB in function, its integration into the new framework makes it more structured and aligned with modern tax reporting systems.
For businesses and individuals dealing with foreign remittances, understanding Form 146 is essential to ensure smooth transactions and avoid regulatory issues.
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