When Is Form 146 Required in 2026? Foreign Remittance CA Certificate & Form 145 Part C Guide
Form 146 is the Chartered Accountant’s certificate used for a taxable payment to a non-resident or foreign company when the payment, or aggregate of such payments, exceeds ₹5 lakh in the tax year and the remitter has not obtained the relevant Assessing Officer certificate. It is the 2026 successor to old Form 15CB and feeds directly into Part C of Form 145.
That sounds simple, but the practical question is not merely “Is the remittance above ₹5 lakh?” The correct workflow starts with chargeability under Indian tax law, then checks the ₹5 lakh aggregation test, any Assessing Officer certificate, treaty relief, withholding and the Rule 220 reporting path.
Form 146 in one sentence
Form 146 is mandatory for Part C of Form 145 when all three conditions are present: the remittance is chargeable to tax in India; the payment or aggregate taxable payments to the non-resident exceed ₹5 lakh during the tax year; and no certificate/order under section 395(1) or 395(2) has been obtained from the Assessing Officer.
The Income Tax Department’s official Form 146 FAQ expressly describes the form as the accountant’s tax-determination certificate and confirms that the CA examines domestic-law chargeability together with the applicable Double Taxation Avoidance Agreement, where relevant.
The 2026 decision tree: Form 145 Part A, B, C or D?
Rule 220 of the Income-tax Rules, 2026 keeps a four-part structure for Form 145. The route depends on whether the sum is chargeable to tax, the ₹5 lakh annual threshold and whether an Assessing Officer certificate has already been obtained.
Part A: taxable remittance where the payment or aggregate of such payments during the tax year does not exceed ₹5 lakh.
Part B: taxable remittance above ₹5 lakh where a certificate or order under section 395(1) or 395(2) has been obtained from the Assessing Officer.
Part C: taxable remittance above ₹5 lakh where Form 146 from an accountant is obtained. If Part B applies, Part C is not required.
Part D: a remittance that is not chargeable to tax in India, except payments for which Rule 220(3) dispenses with information altogether.
For the broader transition from old Forms 15CA/15CB to Forms 145/146, see our 2026 foreign-remittance compliance redesign guide.
When Form 146 is not required
A common compliance error is to treat every foreign payment above ₹5 lakh as automatically requiring a CA certificate. That is not the Rule 220 test.
If the payment is taxable but the annual aggregate does not exceed ₹5 lakh, the remitter generally follows Form 145 Part A rather than Form 146.
If the taxable payment exceeds ₹5 lakh but the remitter has the relevant Assessing Officer certificate/order, Form 145 Part B applies and Part C/Form 146 is not required for that route.
If the payment is not chargeable to tax, Form 146 is not the tax-certification route; Part D may apply unless the payment falls within a Rule 220(3) exception.
Certain non-chargeable remittances are expressly outside the information requirement under Rule 220(3), so the payment purpose and facts must be checked before filing forms by default.
What the Chartered Accountant actually certifies
Form 146 is not a bank form and it is not simply an arithmetic TDS certificate. The CA is expected to form a tax view on the payment before certifying it. The official user manual shows seven panels covering the remitter, recipient, remittance, domestic-law taxability, DTAA taxability, TDS and verification.
Who is the true recipient and what is the legal character of the payment?
Is the income chargeable in India under the Income-tax Act, 2025?
Does a DTAA alter the source-country tax result, and are treaty conditions and documents available?
What amount is chargeable, what withholding provision and rate apply, and when is tax required to be deducted?
Do the invoice, agreement, tax residency evidence, payment amount, currency and bank purpose code tell a consistent story?
Do the tax computation and TDS details reconcile with what will populate Form 145 Part C?
Documents to prepare before assigning Form 146 to your CA
The exact document set depends on the transaction, but a clean file normally starts before the remittance reaches the bank. A practical checklist is:
Invoice, contract, engagement letter or other document establishing the nature of the payment.
Recipient name, address, country, tax identification details and PAN where available or applicable.
Tax Residency Certificate and other treaty-supporting information where DTAA relief is being evaluated.
Working for domestic-law chargeability, treaty position, taxable base, withholding rate and tax amount.
Foreign-currency amount, proposed remittance date, authorised-dealer/bank information and purpose code.
Earlier payments to the same non-resident during the tax year so the ₹5 lakh aggregation test is applied correctly.
Assessing Officer certificate/order, if one exists, because that may move the filing from Part C to Part B.
Worked examples
Example 1: taxable professional fee of ₹3.5 lakh
Assume an Indian business has a taxable foreign professional-service payment of ₹3.5 lakh and has made no other qualifying taxable payment to that recipient during the tax year. Since the aggregate does not exceed ₹5 lakh, the Rule 220 pathway points to Form 145 Part A rather than Form 146.
Example 2: taxable consultancy payments total ₹8 lakh
Assume two taxable payments to the same overseas consultant aggregate to ₹8 lakh during the tax year. No Assessing Officer certificate has been obtained. The remitter should evaluate Form 146 and then Form 145 Part C, with the CA examining domestic-law taxability, any DTAA relief and TDS.
Example 3: payment above ₹5 lakh but AO certificate exists
If the taxable remittance exceeds ₹5 lakh but the payer has obtained the relevant certificate/order under section 395(1) or 395(2), Rule 220 directs the remitter to Part B of Form 145. The rule expressly says Part C is not additionally required where Part B information has been furnished.
Example 4: payment is not chargeable in India
The threshold alone does not make Form 146 necessary. If the payment is genuinely not chargeable to Indian tax, the analysis shifts to Form 145 Part D and the Rule 220(3) exceptions. The underlying taxability conclusion should be documented rather than inferred solely from the remittance purpose code.
Why DTAA analysis matters before the certificate is filed
The official Form 146 guidance makes treaty analysis part of the certificate. In practice, the same outward payment can produce a different Indian withholding result depending on whether it is characterised as business profits, royalty, fees for technical services, interest, capital gains or another category, and whether the treaty’s conditions are satisfied.
For businesses and NRIs dealing with recurring cross-border payments, the safest sequence is: identify the income character, apply domestic law, test the treaty, confirm documentation, calculate withholding and only then complete the remittance reporting. Our broader NRI tax guide and NRI investment and repatriation guide provide related cross-border context.
Common mistakes that cause bank or tax-compliance friction
Looking only at the current invoice and missing the annual ₹5 lakh aggregation test.
Obtaining Form 146 automatically without first deciding whether the payment is chargeable to tax.
Using Part C even though an Assessing Officer certificate/order makes Part B the relevant route.
Treating the DTAA rate as automatic without examining treaty eligibility and supporting documents.
Mismatch between invoice, currency, taxable base, withholding, Form 146 data and Form 145 Part C.
Starting the tax analysis only after the authorised dealer has asked for documents, creating avoidable payment delays.
Practical remittance workflow for finance teams
Step 1 — classify the payment and identify the non-resident recipient.
Step 2 — determine chargeability under the Income-tax Act before considering the form number.
Step 3 — aggregate relevant taxable payments for the tax year and apply the ₹5 lakh test.
Step 4 — check whether a section 395(1)/(2) Assessing Officer certificate/order exists.
Step 5 — where Part C applies, assign Form 146 to the registered CA and complete the tax/treaty analysis.
Step 6 — after Form 146 is filed, use its acknowledgement details in Form 145 Part C and reconcile the payment data before bank processing.
Step 7 — preserve the tax memo, treaty documents, forms, TDS evidence and bank advice as one transaction file.
Frequently asked questions
Is Form 146 the same as old Form 15CB?
For remittances made on or after 1 April 2026, the Income Tax Department identifies Form 146 as the accountant-certificate successor to old Form 15CB under the Income-tax Rules, 2026.
Does every foreign remittance above ₹5 lakh require Form 146?
No. Form 146 is tied to taxable payments above the ₹5 lakh annual threshold where the relevant Assessing Officer certificate/order has not been obtained. Non-chargeable payments and Rule 220(3) exceptions follow a different route.
Can Form 145 Part C be filed before Form 146?
The Form 145 user guidance states that Part C data is prefilled based on the filed Form 146 acknowledgement, so the Form 146 certification belongs earlier in the Part C workflow.
Who can file Form 146?
The Income Tax Department states that a Chartered Accountant registered on the e-Filing portal may file it after the taxpayer assigns Form 146 to the CA; the official user manual also requires the CA to have a registered DSC for electronic verification.
Does Form 146 require a DTAA review?
Where a treaty is relevant, yes. The Department describes Form 146 as a tax-determination certificate examining chargeability under Indian law together with applicable DTAA provisions.
What if the remittance is not taxable in India?
Form 146 is not the default route for a non-chargeable payment. Form 145 Part D may apply, subject to the specific exceptions in Rule 220(3).
Primary official sources
How PGT & Associates can help
Cross-border remittances often sit at the intersection of withholding tax, treaty interpretation, documentation and authorised-dealer requirements. PGT & Associates can assist businesses, NRIs and finance teams with transaction-specific taxability reviews, DTAA analysis, withholding computations and Forms 145/146 compliance.
Disclaimer: This article is for general professional information only and does not constitute tax, legal, FEMA or banking advice. The correct treatment depends on the transaction facts, tax year, applicable treaty, current law and administrative guidance. Obtain transaction-specific advice before remitting funds.
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