Form 146 (Earlier Form 15CB) – CA Certificate for Foreign Remittance
Form 146 is a certificate issued by a Chartered Accountant for payments made to non-residents. It confirms whether the remittance is taxable in India and ensures that the correct amount of tax has been deducted before the funds are transferred abroad.
Under the Income Tax Rules, 2026, Form 146 plays a critical role in validating foreign remittance transactions and maintaining compliance with tax regulations.
When is Form 146 Required?
Form 146 is required in the following situations:
- When the remittance is taxable in India
- When the payment exceeds prescribed limits
- When no lower or nil deduction certificate is available
- When banks require a CA certificate before processing remittance
In most cases, Form 146 must be obtained before filing Form 145 (Part C).
What Does Form 146 Cover?
A Chartered Accountant certifies:
- Nature and purpose of the remittance
- Applicability of income tax provisions
- Taxability under Indian tax laws
- Benefits under Double Taxation Avoidance Agreement (DTAA), if applicable
- Correct TDS rate and calculation
Why is Form 146 Important?
- Ensures compliance with income tax laws
- Avoids under-deduction or non-deduction of TDS
- Reduces risk of penalties and notices
- Provides a clear audit trail for foreign transactions
Common Mistakes to Avoid
- Not obtaining Form 146 for taxable remittances
- Incorrect tax rate application
- Ignoring DTAA benefits
- Mismatch between Form 145 and Form 146
These issues can delay remittances or lead to compliance complications.
How N D Savla & Associates Can Help
At N D Savla & Associates, we assist clients with accurate and compliant foreign remittance certification.
Our services include:
- Determining taxability of foreign payments
- Issuing Form 146 certification
- DTAA evaluation and advisory
- Coordination with Form 145 filing
- Ensuring smooth remittance processing with banks
F.A.Q.
Form 146 is a certificate issued by a Chartered Accountant that verifies the taxability of payments made to non-residents and confirms that the correct tax has been deducted.
Form 146 is required when a foreign remittance is taxable and exceeds prescribed limits, or when a bank requires CA certification before processing the payment.
No, Form 146 is not required for all remittances. It is mainly required for taxable transactions above specified thresholds or where no exemption applies.
Only a qualified Chartered Accountant can issue Form 146 after reviewing the nature of the transaction and applicable tax provisions.
Form 145 is a declaration filed by the remitter, while Form 146 is a CA certificate that verifies taxability and TDS before the remittance is made.
Yes, in certain cases like non-taxable or small remittances. However, for taxable payments above prescribed limits, Form 146 is required before filing Form 145 (Part C).
Failure to obtain Form 146 where required can result in incorrect tax deduction, penalties, or rejection of remittance by the bank.
