Form 145 Income Tax 2025: Purpose, Applicability and Replacement of Form 15CA

Form 145 is a declaration required for payments made to non-residents. Under the Income Tax Act, 2025, Form 145 replaces the earlier Form 15CA of the Income Tax Act, 1961. This change is effective from 1 April 2026. Form 145 is governed by Section 395 of the Income Tax Act, 2025.

What is Form 145?

Form 145 is a mandatory declaration that must be filed before making any payment to a non-resident or a foreign company. It is regulated by Sections 393, 395, 397, and 462 of the Income Tax Act, 2025, along with Rule 220 of the Income Tax Rules, 2026.

Why Was Form 145 Introduced?

What Was Form 15CA?

Form 15CA was introduced under Section 195(6) of the Income Tax Act, 1961 and Rule 37BB of the Income Tax Rules, 1962. It served as a self-declaration that had to be filed before remitting funds to a non-resident or foreign company.

Why Was It Replaced?

With the introduction of the Income Tax Act, 2025, all forms under the earlier law have been revised to align with the new compliance framework. As a result, Form 15CA has been replaced with Form 145.

Who Needs to File Form 145?

Form 145 must be filed by any person making payments to a non-resident or foreign company before the remittance is made outside India, as prescribed under Rule 220 of the Income Tax Rules, 2026.

This includes:

• Indian companies making payments such as interest, royalties, dividends, or professional fees to foreign entities
• Individuals transferring funds abroad for services, investments, or professional payments
• Businesses paying overseas consultants, software providers, or licensors
• Banks and financial institutions making remittances on behalf of customers
• Taxpayers, authorised signatories, and representative assessees involved in foreign remittances

A separate Form 145 is required for every remittance transaction.

Cases Where Form 145 Is Not Required

Form 145 is not required for certain exempt transactions under the Income Tax Act, 2025.

The filing requirement does not apply to:

• Individual remittances that are not taxable under the Income Tax Act and do not require RBI approval
• Transactions carried out by IFSCs under Section 147 of the Income Tax Act, 2025
• Specified transactions exempt under Rule 220, provided they are not chargeable to tax under the Act

These include overseas investments, loans to non-residents, import payments, travel-related remittances, educational expenses abroad, postal services, maintenance of offices overseas, embassy expenses, gifts, donations, tax refunds, and several other notified transactions.

Four Parts of Form 145

Form 145 is divided into four sections:

Part A – Taxable Remittances Up to ₹5 Lakh

Applicable when the payment is taxable and total remittances to the recipient during the tax year do not exceed ₹5 lakh.

Information required includes:

• Remitter details
• Remittee details
• Remittance amount and bank information
• Nature of income
• TDS details
• RBI purpose code
• Declaration by the remitter

Part B – Taxable Remittances Above ₹5 Lakh with AO Certificate

Applicable where:

• The remittance is taxable
• Total remittances exceed ₹5 lakh
• A lower deduction certificate has been obtained from the Assessing Officer

Additional details include:

• AO certificate particulars
• Approved TDS rate and applicable section

Part C – Taxable Remittances Above ₹5 Lakh with Form 146

Applicable when:

• The remittance is taxable
• The amount exceeds ₹5 lakh
• A Chartered Accountant has issued Form 146

Additional information required:

• CA details
• Form 146 acknowledgement number
• UDIN
• Taxability under the Income Tax Act
• DTAA provisions and treaty benefits
• Tax Residency Certificate details
• Form 41 details, where applicable

Part D – Non-Taxable Remittances

Used when the remittance is not taxable under the Income Tax Act, 2025.

Information required:

• Remitter details
• Remittee details
• Remittance information
• Declaration confirming non-taxability

Documents and Information Needed for Form 145

The following details are required while filing Form 145:

• PAN of the remitter
• TAN of the remitter
• Name, address, and TIN of the foreign recipient
• Country of residence and TRC, if treaty benefits are claimed
• Amount and purpose of remittance
• Nature of income
• BSR Code of the remitting bank branch
• ITDREIN of the remitter
• TDS details
• Authorised Dealer bank information
• AO certificate details for Part B
• Form 146 acknowledgement number and UDIN for Part C

How to File Form 145 Online

For Part A, Part B, and Part D

1. Log in to the Income Tax e-Filing portal.
2. Go to e-File → Income Tax Forms → File Income Tax Forms.
3. Select “Forms as per Income Tax Act 2025”.
4. Choose Form 145.
5. Select Online mode and the relevant Tax Year.
6. Click “Let’s Get Started”.
7. Select the applicable part.
8. Enter all required details.
9. Review the information.
10. Complete e-verification through DSC or EVC.
11. Submit the form and save the acknowledgement.
12. Share the acknowledgement with your Authorised Dealer bank.

For Part C

1. Add your Chartered Accountant through the portal.
2. The CA files and verifies Form 146 using DSC.
3. Log in and select Form 145 Part C.
4. Enter the acknowledgement number of Form 146.
5. Verify the pre-filled information.
6. Complete the remaining details.
7. Submit and e-verify the form.
8. Provide the acknowledgement to the Authorised Dealer bank.

What Is Form 146?

Form 146 is the Chartered Accountant certificate introduced under the Income Tax Act, 2025, replacing Form 15CB.

It certifies:

• Nature and purpose of remittance
• Taxability under the Income Tax Act, 2025
• Taxability under applicable DTAA provisions
• Correct TDS rate and amount
• Tax Residency Certificate details
• UDIN for verification

Form 146 is required only for filing Part C of Form 145.

Form 145 vs Form 15CA

Penalty for Non-Filing of Form 145

Form 145 is mandatory under the Income Tax Act, 2025.

Failure to comply may result in:

• Penalty up to ₹1 lakh under Section 462
• Rejection of the remittance by the Authorised Dealer bank
• Tax demands and interest for incorrect or insufficient TDS deduction
• Penalties for submitting incorrect information

Important Due Dates

Important: Form 145 is transaction-based and must be filed separately for every remittance. There is no annual consolidated filing facility.

Disclaimer

This content is for informational purposes only and reflects provisions of the Income Tax Act as amended up to FY 2025–26. Please consult a Chartered Accountant for professional advice.

(FAQs) – Form 145 Income Tax 2025: Purpose, Applicability and Replacement of Form 15CA

1. What is Form 145 under the Income Tax Act?
Form 145 is a new compliance form introduced for reporting certain foreign remittance transactions and is intended to streamline tax reporting requirements related to overseas payments.

2. Why was Form 145 introduced?
Form 145 was introduced to simplify the reporting process, improve transparency in foreign remittances, and modernize international tax compliance procedures.

3. Is Form 145 replacing Form 15CA?
Yes, Form 145 is intended to replace Form 15CA for specified transactions, reducing procedural complexity while maintaining tax compliance requirements.

4. What was the purpose of Form 15CA?
Form 15CA was a declaration submitted before making payments to non-residents, providing information about the remittance and applicable tax deduction requirements.

5. Who is required to file Form 145?
Residents and businesses making eligible payments to non-residents may be required to file Form 145, subject to the provisions of the Income Tax Act and applicable rules.

6. Is Form 15CB still required along with Form 145?
The requirement for a Chartered Accountant’s certificate depends on the nature and value of the remittance and the applicable tax provisions. Taxpayers should refer to the latest rules.

7. What types of payments are covered under Form 145?
Payments such as professional fees, royalties, technical service fees, interest, commissions, and other foreign remittances may fall within its scope, depending on the applicable provisions.

8. Is Form 145 applicable to individuals as well as companies?
Yes, where applicable, both individuals and business entities making taxable foreign remittances may need to comply with Form 145 requirements.

9. What information is generally required in Form 145?
The form may require details of the remitter, recipient, nature of payment, amount remitted, taxability, applicable TDS provisions, and DTAA benefits, if claimed.

10. Can DTAA benefits be claimed while filing Form 145?
Yes, if a valid Double Taxation Avoidance Agreement exists and the necessary documentation, such as a Tax Residency Certificate (TRC) and Form 10F, is available, DTAA benefits may be claimed.

11. What happens if Form 145 is not filed when required?
Failure to comply may result in delays in remittance processing, penalties, or other consequences under the Income Tax Act, depending on the applicable provisions.

12. Is Form 145 filed online?
Yes, Form 145 is expected to be filed electronically through the designated income tax portal or other prescribed online system.

13. How does Form 145 benefit taxpayers?
It aims to simplify compliance, reduce paperwork, improve reporting efficiency, and make foreign remittance procedures more transparent.

14. What documents should be kept while filing Form 145?
Taxpayers should maintain invoices, agreements, bank records, Tax Residency Certificates, Form 10F, CA certificates (where applicable), and other supporting documents.

15. Should businesses seek professional advice for Form 145 compliance?
Yes, professional guidance can help ensure accurate reporting, proper tax deduction, correct application of DTAA provisions, and full compliance with foreign remittance regulations.

Written by

Asha Ahuja Sethi (Head Admin at Jatin Sethi & Co., Chartered Accountants)