Form 145 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Form 145 is the information a person gives before remitting money to a non-resident (not being a company) or a foreign company. It has four Parts, and which one applies depends on whether the sum is taxable and how large it is. This article describes it as printed, as per the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026. Later notifications should be checked.
Rule 220(1) sends the payer to Part A if the payment, or the aggregate in the tax year, does not exceed Rs. 500000; to Part B if it exceeds Rs. 500000 and a certificate or order is obtained under section 395(1) or (2); and to Part C if it exceeds Rs. 500000 and an accountant's certificate in Form 146 is obtained. Rule 220(2) sends a sum not chargeable under the Act to Part D. Rule 220(3) lists cases where no information is needed.
The rule and the sections
Rule 220 has no enabling section in its heading. The rule itself names only section 395(1) and (2) (the certificate or order) and section 515(3)(b) (accountant). For the tax side, see section 393 on payments to non-residents and section 395; our post on rule 220 covers the rule.
The key sub-rules:
- Which Part (sub-rule 1). Clause (a): Part A where the payment or aggregate does not exceed Rs. 500000. Clause (b): Part B where it exceeds Rs. 500000 and a certificate or order is obtained from the Assessing Officer under section 395(1) or (2). Clause (c): Part C where it exceeds Rs. 500000 and a certificate in Form 146 from an accountant as defined in section 515(3)(b) is obtained; where Part B has been furnished, no Part C is needed.
- Not chargeable (sub-rule 2). A sum not chargeable under the Act goes in Part D.
- No information needed (sub-rule 3). For a sum not chargeable under the Act, no information is required if the remittance is made by an individual and does not need prior approval of the Reserve Bank of India under the Foreign Exchange Management Act, 1999 read with Schedule III of the Foreign Exchange (Current Account Transaction) Rules, 2000 (check those laws); or is made by a Unit of an International Financial Services Centre referred to in section 147(1)(b); or is of a nature in the list of 33 purpose codes in the rule (from S0001, Indian investment abroad in equity capital, to S1503, payments by residents for international bidding).
- How furnished (sub-rule 4). Electronically, in accordance with the procedures specified by the Director General of Income-tax (Systems) under rule 332, either under digital signature or with a signed printout, and submitted to the authorised dealer before the payment is remitted. An income-tax authority may call for a copy from the authorised dealer (sub-rule 5).
- Quarterly statement (sub-rule 6). Authorised dealers furnish Form 147, and Units of an International Financial Services Centre furnish Form 148, within fifteen days from the end of the quarter. Those two forms are not described in this article.
Payers and recipients dealing with cross-border payments need to match this form with the deduction and the statement; our NRI tax filing team can guide you through each Part.
What the four Parts have in common
Every Part opens with the remitter (sender) and the remittee (recipient). The remitter block: name (Note 1), address (Note 2), Permanent Account Number, status (Note 3), residential status (Note 4), Tax Deduction and Collection Account Number if available, e-mail identity and contact number. The remittee block: name, PAN if available (Note 5: if PAN is not available, section 397(2) applies), tax identification number in the country of residence (Note 6), country of residence, complete address in that country, e-mail identity and contact number. Each Part then has the remittance (fund transfer) particulars: country to which the remittance is made, the amount to be remitted before deduction of tax at source, particulars of the bank (IFSC code, name, branch, 7-digit BSR code), particulars of the authorised dealer (whether the bank and the authorised dealer are the same; if not, the name; and the ITDREIN), the proposed date of remittance, the nature of remittance, and the purpose code and sub-code as per the Reserve Bank of India.
Part A: up to Rs. 500000, taxable
Part A is "to be filled up if the remittance is taxable under the Act and the remittance or the aggregate of such remittances does not exceed Rs. 5,00,000 during the tax year". It has 25 rows: the remitter (rows 1 to 8), the remittee (9 to 15), the remittance (16 to 24, including row 18, the aggregate of remittances made during the tax year including this one, Note 7), and row 25, particulars of deduction of tax at source (amount, rate in per cent, date). The Declaration states that the information is true and correct and no relevant information has been concealed, and that the remitter will submit the documents needed to let the income-tax authorities determine the nature and amount of the recipient's income and to determine the remitter's liability as the person responsible for deduction.
Part B: above Rs. 500000, with a certificate or order
Part B is "to be filled up if the remittance is taxable under the Act and the remittance or the aggregate exceeds Rs. 5,00,000 during the tax year and certificate or order under section 395(1) or 395(2) has been obtained from the Assessing Officer". It has 31 rows. In addition to the common blocks, rows 16 to 21 give the particulars of the certificate or order: its number, date, the section under which it was obtained (395(1) or 395(2)), the amount on which tax is to be deducted, the rate in per cent and the designation of the Assessing Officer. The remittance rows add the currency and the amount in foreign currency and in rupees, and row 31 gives the deduction particulars. The Declaration adds a certificate that a certificate or order under section 395(1) or (2) has been obtained, with its particulars given in the form.
Part C: above Rs. 500000, with an accountant's certificate
Part C is "to be filled up if ... exceeds Rs. 5,00,000 ... and a certificate in Form 146 from an accountant as defined in section 515(3)(b) has been obtained". It has 43 rows.
| Rows | Particulars |
|---|---|
| 1 to 16 | Remitter and remittee, including the remittee's principal place of business |
| 17 to 25 | The accountant: name, PAN, address, member registration number, date of registration, unique document identification number, Form 146 acknowledgement receipt number, name of the proprietorship or firm, firm registration number |
| 26 to 35 | The remittance: country, currency, amount (in foreign currency and in rupees), bank, authorised dealer, proposed date, nature, RBI purpose code and sub-code, and whether the tax payable has been grossed up as per section 393(10) |
| 36 to 38 | Taxability under the Act (without considering the double taxation avoidance agreement): whether chargeable, reasons if not, and, if yes, the section, the amount of income chargeable, the tax liability, the basis and the rate. Relief under a double taxation avoidance agreement, if claimed: tax residency certificate details, the agreement, article, nature of payment, taxable income and tax liability. Then taxability under the agreement, in four blocks: (A) royalties, fee for technical services, interest and dividend not connected with a permanent establishment; (B) business income, including those items where connected with a permanent establishment; (C) capital gains; (D) other remittances |
| 39 to 43 | Tax deducted at source: amount, whether as per the Act or the agreement, rate, the actual amount of remittance after deduction (in foreign currency and in rupees) and the date of deduction |
The Declaration of Part C adds that a certificate has been obtained from an accountant certifying the amount, nature and correctness of the deduction; that if the tax deductible has not been deducted or has not been paid in full the remitter will pay the amount not deducted or not paid with interest due; and that the remitter shall be subject to the penalty provisions of the Act for the default. For the penalty, see the Act's section articles rather than this form.
Part D: sum not chargeable
Part D is "to be filled up if the remittance is not taxable under the Act {other than payments referred to in rule 220(3)} by the person referred to in rule 220(2)". It has 23 rows (remitter, remittee and the remittance without the deduction rows), a statement in the remitter's own words that he has reason to believe that the remittance is not chargeable under the Act and not liable for deduction of tax at source, and a Declaration with the same undertakings on interest and penalty as Part C.
Nature of remittance
Each Part refers to a list of 65 natures of remittance (Note 8 in Part A, Note 7 in Parts B and C, Note 6 in Part D), from "Advertisement Fee" (1), "AMC Charges" (2) and "Architectural Services" (3), through "Fees for Technical Services/Fees for Included Services" (21), "Interest Payment" (27), "Long Term Capital Gains" (31), "Professional Services" (40), "Royalty" (48) and "Short Term Capital Gains" (51), to "Winning from Horse Races" (62), "Winning from Lotteries, Crossword Puzzles, Card Games and Other Games of any sort" (63), "Consular Receipts" (64) and "Other Income / Other (Not in The Nature of Income)" (65).
Need help with foreign remittances?
Picking the right Part, supporting the taxability view and giving the bank the complete set of papers before the money moves is easier with advice up front. If you would like a review of an upcoming remittance, speak to our NRI tax filing specialists.
Key takeaways
- Rule 220(1) sets Rs. 500000 as the line between Part A and Parts B or C.
- Part B needs a certificate or order under section 395(1) or (2); Part C needs an accountant's certificate in Form 146.
- Part D is for sums not chargeable under the Act.
- Rule 220(3) lists remittances for which no information is needed.
- The form is submitted to the authorised dealer before the remittance, and the dealer files Form 147 quarterly.
Read next
- Form 146: accountant's certificate for payments to non-residents
- Form 144: quarterly statement of tax deducted on payments to non-residents
- Rule 220: foreign remittance in Forms 145 and 146
- Rule 217: non-residents without PAN
Disclaimer: Based on the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026, as consulted on 2 October 2026. It explains the words of the rules and forms only; later notifications, the forms and utilities on the e-filing portal, circulars and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.