Applicability, Filing Process & Replacement of Form 15CA is Form 145 under Income Tax Act, 2025
Taxes / May 06, 2026
Taxation regulations impose strict reporting requirements when it comes to cross-border remittances from Indian residents and corporates. Following the passing of the Income Tax Act, 2025, a significant change was introduced in this sphere. Particularly, it concerns the introduction of Form 145 replaces Form 15CA as of 1 April 2026. Form 145 covers reporting of payments made to non-resident individuals and foreign companies. Thus, in order to facilitate efficient foreign remittance processing, individuals and corporations need to be familiar with the key features of Form 145.
What is Form 145?
Form 145 Income Tax Act 2025 refers to a statutory declaration which should be furnished prior to foreign remittances. The remitter should declare this information before sending money out of India. The new provision was introduced according to the provisions of the Income Tax Act, 2025 in connection with withholding tax and overseas payments reports. Form 145 helps to verify whether the payment is taxable in India and whether withholding tax requirements are met.
Transition from Form 15CA to Form 145
Previously, individuals had to report their foreign transactions using Form 15CA which covered all the necessary information in accordance with the old Income Tax Act. However, after the introduction of the new Income Tax Act, Form 145 became obligatory for all remitters.
Comparison at a Glance
| Particulars | Earlier Framework | New Framework |
|---|---|---|
| Declaration Form | Form 15CA | Form 145 |
| Applicable Law | Income Tax Act, 1961 | Income Tax Act, 2025 |
| CA Certificate | Form 15CB | Form 146 |
| Effective Period | Up to 31 March 2026 | From 1 April 2026 |
These changes concern not only the introduction of new form numbers but also the overall structure.
Why Has Form 145 Been Introduced?
There are several reasons behind the introduction of this new declaration form. First, Form 145 is designed to ensure tax compliance of all foreign remittances. Secondly, it improves the process of overseas payments reporting and helps to enhance the digital verification procedures. Moreover, there are several changes in the structure and data input that make it easier to submit the right information.
Who Should File Form 145?
Any individual who sends money to foreign recipients should use Form 145. Usually, people are required to fill out this document in cases of foreign transactions when a person pays:
- royalties to non-residents;
- dividends to foreign companies;
- technical fees;
- interest on loans made abroad;
- consulting and/or software development fees to foreign companies;
- other remittances made in accordance with their profession.
In addition, financial institutions can prepare Form 145 in cases of processing international remittances on behalf of their customers.
Situation When Form 145 Is Not Needed
Form 145 is not needed in cases of non-taxable remittances. These include, but are not limited to:
- overseas investments;
- prepayment or deposit related to the purchase of goods or services imported into India;
- tuition fees paid to foreign institutions;
- medical treatments abroad;
- remittances made for maintenance of relatives;
- gifts and donations to non-residents;
- tax refund;
- embassy expenses.
It should be noted that some of these payments can be exempted from taxation depending on the specific circumstances of each case. Thus, if you have doubts about taxability of your overseas payments, consult your CA to clarify whether there is a need to use Form 145.
Structure of Form 145 – Four Parts of the Declaration
Depending on the type and amount of your remittance, there are four possible parts to fill in.
Part A
This form is used in cases when:
- the payment is taxable; and
- aggregate amount of payment to the same recipient in the financial year does not exceed ₹5 lakh.
This part includes information about the person who sends money, details of remittance, and information regarding the recipient and withheld taxes.
Part B
This section applies to situations when a person uses his/her certificate issued by the Assessing Officer in order to reduce the amount of withholding tax. If the aggregate amount of payment to the recipient exceeds ₹5 lakh and the taxpayer obtained a certificate from the tax office indicating the reduction of tax deduction, he/she should fill out Part B of Form 145.
All the required information is similar to that provided in Part A with the exception that the remitter should specify all the details related to his/her tax authority order.
Part C
Part C represents the most popular among other options because it is usually used for reporting of business transactions. It applies to the following conditions:
- the remittance is taxable;
- it exceeds ₹5 lakh; and
- Chartered Accountant issued Form 146.
As one can see, this section contains all the details of Part A plus CA certification of taxability and other information.
Part D
In cases when the payment is not taxable according to Indian tax laws, the person should fill out Part D of Form 145.
Required Documents for Filing Form 145
Usually, the following documents are required for filling out the form:
- PAN and TAN card of the remitter;
- Foreigner name and address;
- Name and TAN of the foreigner;
- Country where the foreigner resides;
- Remittance amount;
- Currency of payment;
- Bank branch details;
- Purpose of transfer;
- Rate of withholding tax;
- Tax residency certificate (in case of claiming tax relief under tax treaty).
Proper and detailed documentation facilitates the process of declaration preparation.
How to File Form 145 Online in Accordance with the Requirements of Income Tax Act, 2025?
Taxpayer should submit Form 145 income tax act 2025 online via the official income tax portal.
Step-by-Step Process
- Log in to the tax filing website;
- Go to income tax forms;
- Choose the required form(s);
- Select Form 145;
- Choose the relevant section;
- Fill out required information;
- If required, upload references;
- Review the document;
- E-verify the declaration;
- Print and save the document.
The taxpayer will receive an acknowledgement letter which should be submitted to the authorized dealer prior to remittance.
What is Form 146?
CA certificate should accompany Form 145 in those cases when the payment amount is greater than ₹5 lakh. This form is similar to the earlier version but has changed in accordance with the Income Tax Act, 2025.
Penalties for Non-Compliance
In cases when an individual does not fill out Form 145 and submits it in time, the following penalties will apply:
- a fine of ₹1 lakh;
- rejection or refusal of foreign remittance by bank;
- additional tax liability for under-withholding of tax;
- interest liability;
- compliance scrutiny for inaccurate reporting.
Thus, compliance is crucial for avoiding any financial losses.
Key Compliance Timelines
It is important to mention that filing of Form 145 is not a periodic procedure. The declaration should be prepared before each remittance. Some important points that a person should consider are the following:
- There is no annual form;
- Each remittance should be accompanied by a separate declaration;
- Withdrawal within the period is possible;
- CA certificate preparation (if required) should be done in advance.
Conclusion
Form 145 has become an integral part of Indian tax system as regards the regulation of foreign remittances. This is one more step that should be made in order to comply with tax obligations. Thus, the proper filing of Form 145 will simplify the process of overseas remittance processing.
At Legal N Tax we offer comprehensive tax consulting services and provide assistance with various tax issues. We will help you prepare a correct declaration and facilitate your foreign payments.
Contact our office at +91-9810911733 or mail@legalntaxindia.com for further information on foreign remittance reporting in India.
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