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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 T
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FAQ :
Form 146 is an Accountant's Certificate required for taxable payments made to non-residents or foreign companies. It certifies the taxability of remittances and ensures correct Tax Deducted at Source (TDS) before funds are sent abroad.
Form 146 is mandatory when a payment is made to a non-resident or foreign company, the remittance is taxable, the amount exceeds Rs 5 lakh in a financial year, and no certificate has been obtained from the Assessing Officer.
Only a Chartered Accountant (CA) registered on the income tax e-filing portal, assigned the form by the taxpayer via Form 145 (Part C), and using a valid Digital Signature Certificate (DSC) can file Form 146.
The purpose of Form 146 is to ensure that remittances comply with the Income Tax Act, consider applicable Double Taxation Avoidance Agreements (DTAA), and apply the correct TDS rates, thereby determining the tax liability on cross-border payments.
There is no fixed due date for filing Form 146. However, it must be submitted before the remittance is made to ensure compliance and avoid potential penalties.
Form 146 replaces Form 15CB under the new tax regime introduced by the Income Tax Act, 2025.
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