Everything NRI should know Form 15CA/CB Is Now Form 145/146

If you are an NRI moving money out of India, you may have heard about the new Form 145/146 and are wondering what happened to the old Form 15CA and Form 15CB. This can be confusing, particularly when it comes to tax compliance and international cash transfers.

The basic explanation is that the government has revised the reporting rules for international remittances. The previous forms are being updated to make the procedure more transparent and in line with current tax legislation. So, are the new forms required for you? Yes, they are used for certain transactions.

This guide will lead you through all you need to know, breaking down the process into simple, actionable steps so you can handle your remittances correctly and stress-free.

Key Takeaways

• Form 15CA and 15CB have been replaced by the new Form 145 and Form 146 for reporting foreign remittances.
• Form 145 is the self-declaration filed by the person sending the money.
• Form 146 is the certificate issued by a Chartered Accountant, required for larger transactions.
• These forms are mandatory when remitting funds that are considered taxable income in India.
• Failing to file these forms can lead to penalties from the Income Tax Department.

What Are Form 145 and Form 146?

Form 145 and Form 146 are documents required for sending money from India to a non-resident. Think of them as a two-part reporting system for the tax department.

Form 145 is your declaration. It’s where you provide details about the payment, the recipient, and confirm that the correct amount of tax (TDS) has been deducted.

Form 146 is a certificate from a Chartered Accountant (CA). The CA reviews the transaction, verifies the tax calculation, and certifies its accuracy.

For example, if you sell a property in India and want to send the proceeds abroad, your CA would issue Form 146, and you would use it to file Form 145 online.

Is Form 15CA/CB Really Replaced by Form 145/146?

Yes, the transition is happening. The new Form 145 and Form 146 are set to replace the old Form 15CA and Form 15CB. This change is part of the government’s effort to update tax compliance procedures.

While the core purpose remains the same—to track foreign remittances and ensure proper tax is paid—the new forms have a different structure and require specific details. Your bank will now ask for these new forms before processing any remittance that falls under the reporting rules.

It is important to stop using the old terminology and get familiar with the new requirements to avoid any delays with your bank.

When Are Form 145 and Form 146 Required?

You will need to file these forms when you are sending money abroad and that money is taxable in India. The rules are not based on the amount alone but on the nature of the income. Here are some common situations where filing is mandatory:

• Selling an Indian Property: When you sell a house or land and want to transfer the sale proceeds to your overseas account.
• Rental Income: If you collect rent from a property in India and wish to send it to your foreign bank account.
• Investment Gains: When you repatriate earnings from Indian mutual funds, stocks, or fixed deposits.
• Business Payments: For payments made to a foreign entity for services rendered or as part of a business transaction.

When Are Form 145 and Form 146 NOT Required?

Not every remittance requires these forms. The government has specified certain exemptions to avoid unnecessary paperwork for smaller or non-taxable transactions. You generally do not need to file Form 145/146 in these cases:

• Small Remittances: If the total amount of remittances during the financial year does not exceed ₹5 lakhs.
• Specified Payments: For payments that are on the official exemption list under Rule 37BB, such as travel expenses or donations.
• No Tax Liability: If the income is not taxable in India, or if you have obtained a certificate from the tax officer for a lower or nil tax deduction.
• Personal Gifts Under LRS: Sending personal gifts or loans under the Liberalised Remittance Scheme (LRS) is often exempt, provided it is not taxable income for the recipient.

Documents Needed for Form 145/146

To complete the process smoothly, we recommend gathering the right documents ahead of time. Both you and your Chartered Accountant will need these to ensure everything is in order.

• PAN Card of both the sender (you) and the recipient.
• The signed Form 146 certificate from your Chartered Accountant.
• The underlying transaction document, such as a property sale deed, rental agreement, or invoice.
• Proof of tax payment, like the TDS challan (e.g., Form 26QB for property sales).
• Bank account statements showing the source of funds.
• A cancelled cheque from the remitter’s bank account.

Step-by-Step Process to File Form 145 and 146

1. Step 1: Engage a Chartered Accountant
   Your first step is to consult a CA. They will analyze the transaction to determine the correct income and calculate the applicable Tax Deducted at Source (TDS). This is the most critical part of the process.
2. Step 2: Obtain Form 146 from the CA
   Once the CA has verified all documents and tax calculations, they will issue and sign Form 146. This document acts as the basis for your own declaration.
3. Step 3: File Form 145 on the Income Tax Portal
   Log in to your account on the Indian Income Tax e-filing portal. Navigate to the relevant section for foreign remittances, fill out Form 145 using the information from Form 146, and submit it online.
4. Step 4: Submit Documents to Your Bank
   Provide your bank with a copy of the submitted Form 145 acknowledgement and the CA-certified Form 146. Some banks may have their own additional declaration forms to fill out.
5. Step 5: Bank Executes the Transfer
   The bank’s forex department will review your documents to ensure compliance. Once they are satisfied that all tax obligations are met, they will process your international fund transfer.

Common Mistakes to Avoid

Many NRIs face delays or queries due to simple errors. Being aware of these common pitfalls can save you a lot of trouble.

• Incorrect TDS Calculation: Under-calculating the tax is a serious mistake that can lead to notices from the tax department.
• Filing After the Remittance: The forms must be filed before you instruct the bank to make the transfer, not after.
• Mismatching Information: Ensure the details in Form 145, Form 146, and your bank application are identical.
• Ignoring Small Taxable Amounts: Even if an amount is small, if it is taxable income, the forms may still be required.
• Assuming LRS Covers Everything: The LRS limit of USD 250,000 does not automatically exempt you from tax obligations or filing Form 145/146 if the underlying income is taxable.

Pro Tips for a Smooth Process

Based on our experience helping thousands of NRIs, a little preparation goes a long way.

• Start the process at least two weeks before you need the money transferred. CA verification and bank processing take time.
• Choose a CA who has specific experience with NRI taxation and FEMA regulations.
• Keep digital and physical copies of all submitted documents for your records.
• Communicate clearly with your bank’s forex team about your remittance to understand their specific document requirements.