Form 145 Part A vs B vs C vs D: Which Part Applies in 2026?
Direct answer: Form 145 is the Income-tax Act, 2025 replacement for old Form 15CA for specified payments to a non-resident (other than a company) or to a foreign company. The correct part depends on two questions: is the remittance chargeable to tax in India, and—if it is taxable—does the aggregate taxable remittance during the tax year exceed ₹5 lakh? For taxable remittances above ₹5 lakh, Part B applies where the remitter has an Assessing Officer certificate under section 395(1) or 395(2), while Part C applies where a Chartered Accountant has issued Form 146. Part D is for a remittance that is not taxable under the Act, except for payments that fall within the separate Rule 220(3) exclusions.
Form 145 Part A vs B vs C vs D — quick decision table
Part A: taxable remittance; the remittance or aggregate of such remittances does not exceed ₹5,00,000 during the tax year.
Part B: taxable remittance above ₹5,00,000 in aggregate; an Assessing Officer certificate under section 395(1) or 395(2) has been obtained.
Part C: taxable remittance above ₹5,00,000 in aggregate; Form 146 has been obtained from an eligible accountant.
Part D: remittance is not taxable under the Income-tax Act, 2025, other than payments covered by Rule 220(3).
This four-part structure is confirmed by the Income Tax Department’s current Form 145 user manual and its transition FAQs for the Income-tax Act, 2025. The ₹5 lakh test is an aggregate test for the tax year, not merely a per-transaction threshold.
1. What is Form 145 and when did it replace Form 15CA?
Form 145 is the information statement used for payments to a non-resident, not being a company, or to a foreign company under the Income-tax Act, 2025 framework. The new Act applies from 1 April 2026, and the Department’s current guidance treats Form 145 as the successor to Form 15CA.
The form is filed for each relevant remittance before the payment is remitted. It can be submitted online through the e-Filing portal or through the statutory-forms offline utility. This is a reporting requirement; the underlying question of whether income is taxable still depends on the charging provisions, applicable deeming rules and, where relevant, the applicable DTAA.
2. When does Part A apply?
Part A is the lower-value taxable-remittance route. Use it when the payment is chargeable to tax in India and the remittance, or the aggregate of such taxable remittances during the tax year, does not exceed ₹5 lakh.
Example: an Indian business proposes to make a taxable payment of ₹3.5 lakh to a foreign service provider. Assuming the payment is within the Form 145 reporting framework and the aggregate relevant taxable remittances for the tax year remain within ₹5 lakh, Part A is the applicable part.
The practical mistake to avoid is testing only the current invoice. Finance teams should track the cumulative remittance position across the tax year before selecting Part A.
3. When does Part B apply?
Part B applies where the remittance is taxable, the ₹5 lakh aggregate threshold is crossed, and the remitter has obtained the relevant certificate from the Assessing Officer under section 395(1) or section 395(2).
A key change highlighted by the Income Tax Department is that where Part B is furnished on the strength of the Assessing Officer certificate, Part C is not also required. In other words, the new framework avoids the old-style duplication of an AO certificate route plus a separate CA-certificate route for the same remittance.
4. When does Part C apply?
Part C is the route for a taxable remittance above the ₹5 lakh aggregate threshold where Form 146 has been obtained from an accountant. Form 146 is the 2026 successor to old Form 15CB.
The Department’s Form 145 manual states that Part C is populated using the ARN of the filed Form 146. The Form 146 data includes the remitter and remittee, remittance details, domestic-law taxability, DTAA analysis where applicable, TDS details and the accountant’s verification.
For a detailed Form 146 decision guide, see PGT & Associates: https://www.pgtandassociates.com/post/form-146-foreign-remittance
5. When does Part D apply?
Part D is for a remittance that is not chargeable to tax under the Act, provided the payment is not one of the payments separately referred to in Rule 220(3). This distinction matters because “not taxable” does not automatically mean “file Part D.” Some specified remittance purposes are carved out by Rule 220(3), and the first step is therefore to check whether the payment is outside the Form 145 requirement altogether.
For a detailed guide to those exclusions, see PGT & Associates: https://www.pgtandassociates.com/post/form-145-not-required
6. A practical 5-step decision process before filing Form 145
Identify the exact legal character of the payment—royalty, fees for services, interest, purchase consideration, reimbursement, capital payment or another category.
Determine chargeability under the Income-tax Act before applying treaty relief. Do not decide the form merely from the bank purpose code.
Check the applicable DTAA, tax residency certificate and other treaty documentation where treaty relief is being claimed.
Track the aggregate relevant taxable remittances during the tax year to determine whether the ₹5 lakh threshold has been crossed.
Choose Part A, B, C or D only after checking Rule 220(3) exclusions and whether an AO certificate or Form 146 has been obtained.
7. Why DTAA analysis still matters even though Form 145 is procedural
Form selection is procedural, but the tax analysis behind it can be substantive. A payment may be taxable under domestic law but entitled to a lower rate or different treatment under an applicable treaty, subject to the treaty article and documentation requirements.
For Part C cases, the Department’s Form 146 manual expressly includes separate panels for taxability under domestic law and taxability under the DTAA. That is why a remittance review should not stop at the section number or withholding rate in the Act.
8. Transition issue: liability arose before 1 April 2026 but payment is made later
The Income Tax Department’s transition FAQ gives an important example: where a liability accrued in February 2026 but the remittance is made in April 2026, the procedural Form 145/146 requirement follows the law in force on the date of remittance, while taxability of the underlying income is governed by the Act applicable to the year of accrual. This is especially relevant for year-end invoices and cross-border accruals carried into April 2026.
9. Common Form 145 selection errors
Treating ₹5 lakh as a per-remittance limit instead of checking the aggregate for the tax year.
Automatically obtaining Form 146 even where an Assessing Officer certificate already supports Part B.
Filing Part D merely because no tax was deducted, without first establishing that the payment is not chargeable to tax.
Ignoring Rule 220(3) and filing Form 145 for a payment that falls within a specified exclusion.
Using a bank purpose code as a substitute for a legal taxability analysis.
Applying a DTAA rate without maintaining the treaty documentation needed to support the position.
Waiting until the bank requests documents instead of completing the tax review before the proposed remittance date.
10. Documents a finance team should keep ready
Invoice, agreement, purchase order or other document explaining the payment.
Residential status and country details of the recipient.
Tax Residency Certificate and supporting treaty documents where DTAA relief is claimed.
Working paper on domestic-law chargeability and the applicable withholding provision/rate.
Aggregate remittance tracker for the tax year.
Assessing Officer certificate for Part B, where applicable.
Filed Form 146 ARN for Part C, where applicable.
Rule 220(3) purpose-code/exclusion support where Form 145 is not required.
Frequently asked questions
Is Form 145 the same as old Form 15CA?
It is the new reporting form under the Income-tax Act, 2025 framework that replaces the old Form 15CA for the relevant foreign-remittance reporting requirement.
Is Form 146 required for every payment above ₹5 lakh?
No. The payment must first be taxable and within the reporting framework. If an Assessing Officer certificate under section 395(1) or 395(2) has been obtained, Part B applies. Form 146 supports Part C where the taxable aggregate exceeds ₹5 lakh and the CA-certificate route is used.
Can I use Part D whenever TDS is nil?
No. Nil withholding and non-taxability are not automatically the same thing. Part D requires the remittance to be not taxable under the Act and also requires checking whether Rule 220(3) removes the payment from the Form 145 filing requirement.
Does Part C need to be prepared independently after Form 146?
The Income Tax Department’s manual states that Part C panels are prefilled using the ARN details of the filed Form 146.
What if the transaction was accrued before 1 April 2026 but remitted after that date?
The Department’s transition guidance says the procedural reporting form follows the law in force on the remittance date, while taxability of the underlying income follows the Act applicable to the year of accrual.
Official references
Income Tax Department — Form 145 User Manual: https://www.incometax.gov.in/iec/foportal/newformpage/forms/form145-UM
Income Tax Department — Income Tax Forms FAQs / 2025 Act transition guidance: https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/income-tax-forms
Income Tax Department — Form 146 User Manual: https://www.incometax.gov.in/iec/foportal/newformpage/forms/form146-UM
Income-tax Rules, 2026 (Rule 220 and forms): https://www.incometax.gov.in/iec/foportal/sites/default/files/2026-03/En-Notified-IT-Rules-2026-20-03-2026.pdf
How PGT & Associates can help
Cross-border remittance compliance is safest when the form is the final step—not the starting point. PGT & Associates can assist businesses, individuals and overseas stakeholders with chargeability analysis, DTAA review, withholding-tax positions, Form 145/146 documentation and related remittance compliance. Advice should be tailored to the payment, recipient jurisdiction and underlying contract; no tax outcome can be guaranteed.
Disclaimer: This article is for general professional information as of 22 August 2026 and is not a substitute for advice on a specific transaction. Tax and FEMA consequences can differ materially based on the facts, treaty position, documentation and nature of the payment.
Comments