Rule 220 of Income 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.
Rule 220 of the Income-tax Rules, 2026 requires a person paying a non-resident or a foreign company to furnish information in Form No. 145 before remitting — Part A up to Rs 5,00,000, Part B where an Assessing Officer certificate under section 395(1) or (2) exists, Part C where an accountant certifies in Form No. 146, and Part D for sums not chargeable to tax. It replaces rule 37BB and Forms 15CA and 15CB.
The four-form architecture
Rule 220 keeps the shape of the old 15CA/15CB regime but renumbers every form in it. Anyone who has filed a remittance certificate will recognise the structure immediately; what changes is the citation and the form number on the paper.
| Purpose | 1962 Rules | 2026 Rules |
|---|---|---|
| Remitter's information, four parts | Form 15CA | Form No. 145, Parts A to D |
| Accountant's certificate | Form 15CB | Form No. 146 |
| Authorised dealer's quarterly statement | Form 15CC | Form No. 147 |
| IFSC Unit's quarterly statement | — | Form No. 148 |
| Parent rule | Rule 37BB | Rule 220 |
Which part of Form No. 145 — rule 220(1)
The person responsible for paying a non-resident, not being a company, or a foreign company, any sum chargeable under the Act, furnishes:
| Clause | Part | When |
|---|---|---|
| (a) | Part A | The payment, or the aggregate of such payments made during the tax year, does not exceed Rs 5,00,000 |
| (b) | Part B | The payment or aggregate exceeds Rs 5,00,000 and a certificate or order is obtained from the Assessing Officer under section 395(1) or (2) |
| (c) | Part C | The payment or aggregate exceeds Rs 5,00,000 and a certificate in Form No. 146 from an accountant as defined in section 515(3)(b) is obtained |
| (2) | Part D | The sum is not chargeable under the provisions of the Act |
Clause (c) ends with an express carve-out: "where information in Part B of the said Form has been furnished, no information is required to be furnished in Part C". If the Assessing Officer has already issued a certificate or order under section 395(1) or (2), Part B is filed and the accountant's Form No. 146 route is not needed for that remittance. Filing both is duplication, not caution.
Note also that the Rs 5,00,000 test is on the aggregate for the tax year, not on the single remittance. A series of small payments to the same non-resident crosses into Part B or Part C territory once the running total passes the threshold.
The exemptions in sub-rule (3)
Sub-rule (2) requires Part D for sums not chargeable to tax. Sub-rule (3) then removes even that obligation in three situations, "irrespective of sub-rule (2)":
- (a) the remittance is made by an individual and does not require prior approval of the Reserve Bank of India under section 5 of the Foreign Exchange Management Act, 1999 read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000;
- (b) the remittance is made by a Unit of an International Financial Services Centre referred to in section 147(1)(b); or
- (c) the remittance is of a nature specified in column C of the specified list in the rule.
The specified list — 33 purpose codes
The list in sub-rule (3)(c) is indexed by RBI purpose code. It covers, among others:
| Purpose codes | Nature of payment |
|---|---|
| S0001 to S0005 | Indian investment abroad — equity capital, debt securities, branches and wholly owned subsidiaries, subsidiaries and associates, real estate |
| S0011 | Loans extended to non-residents |
| S0101 to S0104 | Advance payment against imports; payment towards import (settlement of invoice); imports by diplomatic missions; intermediary trade |
| S0190 | Imports below Rs 5,00,000 (for use by Exchange Control Department offices) |
| S0202, S0208, S0212 | Operating expenses of Indian shipping and airline companies operating abroad; booking of passages abroad |
| S0301 to S0305 | Business travel; travel under basic travel quota; pilgrimage; medical treatment; education including fees and hostel expenses |
| S0401, S0501, S0602 | Postal services; construction of projects abroad by Indian companies; freight insurance relating to import and export of goods |
| S1011, S1201, S1202 | Maintenance of offices abroad; maintenance of Indian embassies abroad; remittances by foreign embassies in India |
| S1301 to S1306 | Family maintenance and savings; personal gifts and donations; donations to religious and charitable institutions abroad; grants to other Governments; Government contributions to international institutions; payment or refund of taxes |
| S1501, S1503 | Refunds, rebates or reduction in invoice value on account of exports; payments by residents for international bidding |
Two of these are worth calling out because they cover the highest-volume retail remittances in India: S0305 travel for education and S0304 travel for medical treatment. Both sit in the specified list, so no part of Form No. 145 is required for them.
How the form is filed — rule 220(4) and (5)
Form No. 145 is furnished in one of two ways, and in both the form must reach the authorised dealer prior to remitting the payment:
- (a) electronically under digital signature, in accordance with the procedures, formats and standards specified by the Director General of Income-tax (Systems) under rule 332, and then submitted to the authorised dealer electronically or otherwise; or
- (b) electronically in accordance with the same rule 332 specifications, and then a signed printout submitted to the authorised dealer electronically or otherwise.
Under sub-rule (5), an income-tax authority may require the authorised dealer to produce a copy of the signed-printout version for the purposes of any proceeding. The authorised dealer's file is therefore part of the evidence chain, not merely a banking record.
The quarterly statement — rule 220(6)
A quarterly statement covering all remittances referred to in sub-rules (1), (2) and (3) — that is, including the exempt ones — is furnished by:
- (a) the authorised dealer in Form No. 147; or
- (b) a Unit of an International Financial Services Centre referred to in section 147(1)(b) responsible for paying a non-resident or foreign company, in Form No. 148,
to the Director General of Income-tax (Systems) or the person authorised by him, within fifteen days from the end of the quarter of the tax year to which the statement relates.
Sub-rule (6) expressly covers remittances referred to in sub-rules (1), (2) and (3). A remittance for education or medical treatment needs no Form No. 145 from the remitter, but the authorised dealer still reports it in Form No. 147. The department therefore sees the remittance either way — the exemption is a compliance relief for the remitter, not an information blackout.
Definitions — rule 220(7)
- "authorised dealer" — a person authorised as an authorised dealer under section 10(1) of the Foreign Exchange Management Act, 1999.
- "International Financial Services Centre" — as assigned in section 2(q) of the Special Economic Zones Act, 2005.
- "Unit" — as assigned in section 2(zc) of the Special Economic Zones Act, 2005.
Worked example
An Indian company pays a Singapore consultancy for advisory services during tax year 2026-27:
- June 2026 — Rs 3,20,000. Aggregate for the year is Rs 3,20,000, within Rs 5,00,000. Part A of Form No. 145 before remitting.
- November 2026 — Rs 4,10,000. The aggregate is now Rs 7,30,000, above the threshold. No section 395 certificate has been obtained, so the company obtains Form No. 146 from its accountant and files Part C of Form No. 145 before remitting.
- The same company also remits Rs 18,00,000 for a director's daughter's university fees abroad under purpose code S0305. That falls in the specified list, so no part of Form No. 145 is filed — but the bank reports it in Form No. 147 for the quarter.
Compliance checklist
- Track the aggregate for the tax year per payee, not each remittance in isolation — the Rs 5,00,000 test is cumulative.
- Where a section 395(1) or (2) certificate exists, file Part B and stop; do not also obtain Form No. 146.
- Get the accountant's Form No. 146 before Part C, and confirm the signatory is an accountant as defined in section 515(3)(b).
- Check the purpose code against the specified list before assuming Part D is required.
- Deliver the form to the authorised dealer before the remittance leaves, in either of the two permitted modes.
- Authorised dealers and IFSC Units: calendar the fifteen-day quarterly deadline for Form No. 147 or Form No. 148.
- Retire references to Forms 15CA, 15CB, 15CC and rule 37BB in engagement letters, checklists and templates.
Common mistakes
- Applying the Rs 5,00,000 test per payment. The rule says "the amount of payment or the aggregate of such payments made during the tax year".
- Obtaining Form No. 146 even though Part B was filed.
- Filing after the remittance. Sub-rule (4) says "prior to remitting the payment".
- Treating the sub-rule (3) exemptions as covering the bank's quarterly statement. They do not.
- Assuming every non-chargeable remittance needs Part D. Individual remittances outside RBI prior approval, IFSC Unit remittances and the 33 listed purpose codes are outside it.