Form 146 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 146 is the certificate an accountant gives about a remittance abroad: what it is, whether it is taxable in India under the Act and under a double taxation avoidance agreement, and what tax should be deducted. 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)(c) says that, where the payment or aggregate to a non-resident (not being a company) or a foreign company exceeds Rs. 500000, the payer may furnish Part C of Form 145 on the strength of a certificate in Form 146 from an accountant as defined in section 515(3)(b). Form 146 has 34 rows in five blocks and a Verification by the accountant. If Part B of Form 145 (certificate or order from the Assessing Officer) is furnished, Part C is not needed.
The rule and the sections
Rule 220 names no enabling section in its heading. It names section 395(1) and (2) for the certificate or order that leads to Part B of Form 145 and section 515(3)(b) for the accountant. Sub-rule (1)(c) is the source of Form 146. The tax side is in section 393 on payments to non-residents, and the relief under a treaty is in section 159. Our post on rule 220 covers the rule, and the companion article on Form 145 shows how Part C reproduces the data in Form 146.
Sub-rule (6) of rule 220 requires a quarterly statement of the remittances: Form 147 from an authorised dealer and Form 148 from a Unit of an International Financial Services Centre, within fifteen days from the end of the quarter. These two forms get no further treatment here.
Before a large remittance abroad, taking advice on the treaty position and the deduction avoids disputes later; our NRI tax filing team can coordinate with your accountant.
Block 1: remitter and remittee
| Rows | Particulars |
|---|---|
| 1 to 8 | The remitter (sender): 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, contact number |
| 9 to 16 | The remittee (recipient): 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 there, principal place of business, e-mail identity, contact number |
Block 2: the remittance
Rows 17 to 26 are the remittance particulars: the country to which it is made, the currency, the amount to be remitted before deduction of tax at source in foreign currency and in rupees, the bank (IFSC code, name, branch and 7-digit BSR code), the authorised dealer (whether the bank and the authorised dealer are the same, the name of the authorised dealer if not, and the ITDREIN), the proposed date of remittance, the nature of remittance from the list of 65 items in Note 7 (the same list as in Form 145), the purpose code and sub-code as per the Reserve Bank of India, and whether the tax payable has been grossed up as per section 393(10) (Yes or No).
Block 3: taxability
The form asks for the accountant's view in three layers.
| Row | What it asks |
|---|---|
| 27 | Taxability under the provisions of the Act, without considering the double taxation avoidance agreement: (a) whether the remittance is chargeable to tax in India; (b) if no, the reasons; (c) if yes, the section under which it is chargeable, the amount of income chargeable, the tax liability, the basis of determining taxable income and tax liability, and the rate of deduction of tax at source in per cent |
| 28 | If relief is claimed under the agreement: whether a tax residency certificate has been obtained from the remittee, its number, the agreement, the article, the nature of payment as per the agreement, the taxable income and the tax liability as per the agreement |
| 29 | Taxability under the agreement, in four sub-items according to the nature of the remittance |
The four sub-items of row 29 are:
- A. Royalties, fee for technical services, interest and dividend (not connected with a permanent establishment): whether taxable in India as per the agreement; if yes, the article, the amount taxable and the rate of deduction as per the agreement; if no, brief reasons specifying the article.
- B. Business income (including business income where royalty, fee for technical services or interest is connected with a permanent establishment): the same particulars.
- C. Capital gains: whether taxable as per the agreement; the article; a table of long-term capital gains (date of sale, total sale consideration, date of acquisition, cost of acquisition, cost of improvement if any, and the gain) and a similar table for short-term capital gains; the rate of deduction as per the agreement; and brief reasons if not taxable.
- D. Remittance not covered by A, B or C: the nature of the remittance, whether taxable as per the agreement, the article, the amount taxable and the rate, or brief reasons if not.
Block 4: tax deducted at source
Rows 30 to 34 record the amount of tax deducted, whether it was deducted as per the Act or as per the relevant agreement, the rate (as per the Act or as per the agreement, in per cent), the actual amount of remittance after deduction (in foreign currency and in rupees) and the date of deduction, if any.
Block 5: verification
The accountant states, over name and Permanent Account Number, that he or she has examined (a) the agreement, wherever applicable, between the named remitter and remittee requiring the remittance, and (b) the relevant documents and books of account needed to ascertain the nature of the remittance and to determine the rate of deduction of tax at source as per the provisions of Chapter XIX-B of the Act; and certifies that the above details are true and correct. The signature block carries place, date, signature, name, PAN, member registration number, date of registration, Unique Document Identification Number, name of the proprietorship or firm and firm registration number.
Notes
Notes 1 and 2 cover names and addresses; Note 3 lists the person statuses (individual, Hindu undivided family, company, firm, association of persons, body of individuals, local authority, artificial juridical person, Government, trust); Note 4 the residential status; Note 5 that section 397(2) applies if there is no PAN; Note 6 the tax identification number of the remittee or a unique number if none is available; Note 7 the 65 natures of remittance, from "Advertisement Fee" to "Other Income / Other (Not in The Nature of Income)"; Note 8 pre-filling; Note 9 amounts in rupees.
How it fits with Form 145
In Form 145, Part C repeats the remitter and remittee blocks, adds the accountant's particulars (name, PAN, address, member registration number, date of registration, UDIN, the acknowledgement receipt number of Form 146, firm name and firm registration number), and carries rows 36 to 38 on taxability that mirror rows 27 to 29 of Form 146, followed by the tax deducted rows. In other words, the certificate is the basis for Part C. The payer gives an undertaking in Part C to pay any tax found not deducted or not paid, with interest. For a remittance for which a certificate or order is obtained from the Assessing Officer, Part B is used instead.
A short example
Skyline Interiors Pvt Ltd plans to pay a foreign design consultancy an amount above Rs. 500000. The company obtains a Form 146 certificate from its chartered accountant, who records the nature of remittance (design fee or consulting services), the section of the Act under which it is chargeable, the treaty position with the article relied upon, the tax residency certificate number and the rate. The company then furnishes Part C of Form 145 before the money moves. The names and facts are invented.
Need help with an accountant's certificate on foreign payments?
The certificate has to reconcile the agreement, the invoice and the treaty position, and Part C of Form 145 has to match it. If you want a second view of the taxability analysis before the remittance, speak to our NRI tax filing specialists.
Key takeaways
- Form 146 is the accountant's certificate behind Part C of Form 145.
- It applies where the payment or aggregate exceeds Rs. 500000.
- It records taxability under the Act, taxability under the agreement and the tax deducted.
- The accountant must be one as defined in section 515(3)(b).
- Forms 147 and 148 are the quarterly statements of dealers and International Financial Services Centre Units.
Read next
- Form 145: information 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
- Section 159 of the Income-tax Act, 2025: DTAA relief
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.