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Foreign remittances from India are now entering a new compliance era under the Income Tax Act, 2025. One of the biggest changes introduced by the Income Tax Department is the launch of Form 145, which replaces the old Form 15CA mechanism for reporting payments made to non-residents and foreign entities.
This change directly impacts:
If you are making foreign remittances from India in FY 2026-27 onwards, understanding Form 145, Form 146, TDS provisions, DTAA benefits, FEMA rules, and outward remittance procedures has become extremely important.
At Dinesh Aarjav & Associates, our international tax experts regularly assist clients across India, USA, Canada, UK, UAE, Singapore, and Australia with foreign remittance compliance, Form 145 filing, DTAA advisory, FEMA compliance, and NRI taxation matters.
Form 145 is a mandatory reporting form prescribed under the new Income Tax Act, 2025 for certain payments made to non-residents or foreign companies outside India.
It replaces the earlier Form 15CA system applicable under the old Income Tax Act, 1961.
The form is required to be furnished before remitting money outside India in specified situations involving:
Official User Manual:
Income Tax Department – Form 145 User Manual
Official Form Page:
Income Tax Department – Form 145
The government has rationalized and renumbered several forms under the Income Tax Act, 2025 framework.
| Earlier System | New System under Income Tax Act, 2025 |
| Form 15CA | Form 145 |
| Form 15CB | Form 146 |
This means taxpayers and professionals dealing with international transactions must now transition from the old 15CA/15CB mechanism to the new Form 145/Form 146 reporting structure.
India is rapidly tightening scrutiny on:
Banks and Authorized Dealers (AD Banks) are increasingly seeking proper documentation before processing outward remittances from India.
Improper compliance can lead to:
Hence proper filing of Form 145 has become critical.
Form 145 may be required for:
Indian Businesses Making Overseas Payments
Examples include:
Startups and SaaS Companies
Indian startups frequently make payments for:
These transactions may trigger Form 145 compliance.
NRIs and OCI Card Holders
NRIs often require Form 145 compliance in situations involving:
Residents Sending Money Abroad
Residents remitting funds outside India for taxable transactions may also require compliance depending on the nature of payment.
Similar to old Form 15CA, the new Form 145 contains multiple sections based on taxability and remittance amount.
Part A of Form 145
Applicable where:
Generally, Form 146 certification may not be required.
Part B of Form 145
Applicable where:
This may include cases involving lower withholding approvals.
Part C of Form 145
Applicable where:
This is one of the most commonly used categories for businesses making foreign remittances.
Part D of Form 145
Applicable where:
However, reporting obligations may still continue depending on the transaction type and banking requirements.
Form 146 is the Chartered Accountant certificate replacing old Form 15CB.
The CA certifies:
Banks rely heavily on Form 146 before permitting outward remittances.
The following documents are generally required:
Basic Documents
Transaction Documents
International Tax Documents
One of the most searched topics in 2026 is:
“Is Form 145 required for NRI property sale remittance?”
In many cases, yes.
NRIs repatriating sale proceeds outside India may require:
This becomes especially important for NRIs residing in:
Many overseas Indians search for:
The new framework significantly impacts global Indians dealing with Indian assets and overseas remittances.
Foreign Consultancy Payments
Payments to:
may require withholding tax analysis.
Import of Services
Common for:
SaaS & Software Payments
Payments to:
may attract remittance reporting obligations.
Royalty & Technical Service Fees
Cross-border royalty and FTS transactions are heavily scrutinized under Indian tax law and DTAA provisions.
India has Double Tax Avoidance Agreements (DTAAs) with multiple countries including:
Taxpayers claiming treaty benefits must maintain:
Improper treaty claims can lead to rejection by banks or future scrutiny.
Apart from Income Tax compliance, foreign remittances must also satisfy FEMA requirements.
Banks typically evaluate:
Improper structuring can create FEMA complications later.
The Income Tax Department allows:
Online Filing
Through Income Tax e-filing portal.
Offline Utility Filing
Taxpayers can also use the official offline utility.
Official Portal:
Income Tax e-Filing Portal
The offline utility is especially useful for:
The utility allows users to:
Assuming Non-Taxable Means No Compliance
Even non-taxable remittances may require reporting.
Ignoring DTAA Documentation
Without proper documents, treaty benefits may get denied.
Wrong TDS Deduction
Incorrect withholding can lead to notices and penalties.
FEMA Non-Compliance
Income tax compliance alone is not sufficient.
Improper Remittance Structuring
Banks may reject outward remittances if documents are incomplete.
Failure to properly comply may result in:
Hence professional review becomes highly advisable for cross-border transactions.
At Dinesh Aarjav & Associates, we actively assist clients globally with:
Foreign Remittance Advisory
NRI Taxation Services
International Taxation
Lower/Nil TDS Certificates
With 25+ years of experience and clients across India, USA, Canada, UK, UAE, Singapore, and Australia, our team regularly handles complex international tax and FEMA matters.
Form 145 represents a major compliance shift under the new Income Tax Act, 2025. Businesses, NRIs, startups, investors, and professionals making foreign remittances must carefully evaluate:
With increasing global transparency and regulatory scrutiny, proper foreign remittance compliance has become more important than ever.
For expert assistance regarding Form 145, Form 146, foreign remittances, DTAA benefits, FEMA advisory, or NRI taxation, connect with Dinesh Aarjav & Associates
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CA Shailendra Jain is an Associate at Dinesh Aarjav & Associates with over 15 years of experience in NRI taxation, cross-border tax advisory, transfer pricing, tax litigation, and direct tax matters. He advises NRIs and businesses on international tax compliance, cross-border transactions, and dispute resolution before tax authorities.
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