{"id":1619,"date":"2026-08-26T06:24:13","date_gmt":"2026-08-26T01:54:13","guid":{"rendered":"https:\/\/caalokkumar.com\/my-writing\/?p=1619"},"modified":"2026-08-26T06:24:15","modified_gmt":"2026-08-26T01:54:15","slug":"form-146-user-manual-foreign-remittance","status":"publish","type":"post","link":"https:\/\/caalokkumar.com\/my-writing\/form-146-user-manual-foreign-remittance\/","title":{"rendered":"Form 146 User Manual 2026: New Foreign Remittance Filing Process, DTAA, TDS &amp; CA Certification Explained"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">Form 146 User Manual 2026: Foreign Remittance Rules Explained<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Updated: 25 August 2026<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Form 146 User Manual 2026: Why This Official Update Matters<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Income Tax Department has now published a detailed&nbsp;<strong>Form 146 User Manual<\/strong>, giving taxpayers, businesses and Chartered Accountants a practical roadmap for certifying taxable foreign remittances under the&nbsp;<strong>Income-tax Act, 2025<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Form 146 is the new Accountant\u2019s Certificate corresponding to the earlier&nbsp;<strong>Form 15CB<\/strong>. For remittances made on or after&nbsp;<strong>1 April 2026<\/strong>, the procedural framework has moved to&nbsp;<strong>Form 145 and Form 146<\/strong>&nbsp;under the Income-tax Rules, 2026. The new Rules came into force from 1 April 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The update is important because Form 146 is no longer something businesses or NRIs should view merely as a \u201ccertificate required by the bank\u201d.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The official Form 146 filing process itself requires examination of:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>the remitter \u2192 overseas recipient \u2192 nature of payment \u2192 RBI purpose code \u2192 Indian taxability \u2192 DTAA position \u2192 TDS \u2192 Chartered Accountant verification.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That means a foreign remittance now creates a much more structured and searchable compliance trail.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Taxpayers who require professional assistance can refer to our dedicated&nbsp;<a href=\"https:\/\/caalokkumar.com\/form-145-146-ca-certificate-foreign-remittance.html?utm_source=chatgpt.com\">Form 145 and Form 146 \u2013 CA Certificate for Foreign Remittance service<\/a>&nbsp;covering taxability review, Section 393 TDS, DTAA analysis and remittance documentation.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">What Is Form 146?<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Form 146 is an&nbsp;<strong>Accountant\u2019s Certificate for payment to a non-resident or foreign company<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the Income Tax Department\u2019s official FAQ, Form 146 is required for filing&nbsp;<strong>Part C of Form 145<\/strong>&nbsp;where:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the payment is\u00a0<strong>chargeable to tax in India<\/strong>;<\/li>\n\n\n\n<li>the payment or aggregate of such payments exceeds\u00a0<strong>\u20b95 lakh during the tax year<\/strong>; and<\/li>\n\n\n\n<li>the taxpayer has not obtained the relevant certificate from the Assessing Officer under\u00a0<strong>Section 395(1) or Section 395(2)<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The Department describes Form 146 as a&nbsp;<strong>tax-determination certificate<\/strong>&nbsp;in which the Chartered Accountant examines the remittance with reference to domestic taxability and the applicable&nbsp;<strong>Double Taxation Avoidance Agreement (DTAA)<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In simple terms:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Form 146 is not merely proof that tax has been deducted. It records why the remittance is taxable or non-taxable, which tax provision applies, whether DTAA relief is available and what TDS treatment has been adopted.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">Form 15CA and Form 15CB Have Changed to Form 145 and Form 146<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">For remittances made on or after&nbsp;<strong>1 April 2026<\/strong>, taxpayers should use the forms prescribed under the Income-tax Act, 2025 and Income-tax Rules, 2026.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Earlier framework<\/th><th>New framework<\/th><\/tr><\/thead><tbody><tr><td>Form 15CA<\/td><td><strong>Form 145<\/strong><\/td><\/tr><tr><td>Form 15CB<\/td><td><strong>Form 146<\/strong><\/td><\/tr><tr><td>Section 195 \u2013 TDS on non-resident payments<\/td><td><strong>Section 393<\/strong><\/td><\/tr><tr><td>Section 197 \u2013 lower\/nil deduction<\/td><td><strong>Section 395<\/strong><\/td><\/tr><tr><td>Rule 37BB<\/td><td><strong>Rule 220<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The CBDT transition FAQs expressly confirm that Forms&nbsp;<strong>145 and 146<\/strong>&nbsp;are to be used for remittances made on or after 1 April 2026, while broadly retaining the earlier compliance structure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a broader comparison of the old and new forms, readers may also refer to our internal guide on&nbsp;<a href=\"https:\/\/caalokkumar.com\/my-writing\/income-tax-act-2025-forms-mapping\/?utm_source=chatgpt.com\">Income-tax Act 2025 Forms Mapping \u2013 Old Forms vs New Forms<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">When Is Form 146 Required?<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The easiest way to understand the requirement is to first identify which part of&nbsp;<strong>Form 145<\/strong>&nbsp;applies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Form 145 \u2013 Four-Part Structure<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Situation<\/th><th>Form 145 Part<\/th><th>Form 146 required?<\/th><\/tr><\/thead><tbody><tr><td>Taxable remittance and aggregate does not exceed \u20b95 lakh<\/td><td>Part A<\/td><td>No<\/td><\/tr><tr><td>Taxable remittance above \u20b95 lakh with AO certificate u\/s 395(1)\/(2)<\/td><td>Part B<\/td><td>No<\/td><\/tr><tr><td>Taxable remittance above \u20b95 lakh with CA certificate<\/td><td>Part C<\/td><td><strong>Yes<\/strong><\/td><\/tr><tr><td>Remittance not chargeable to tax, other than Rule 220(3) exempt payments<\/td><td>Part D<\/td><td>No<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The official Form 145 User Manual confirms this four-part structure. It also explains that where Part C applies, information from the filed Form 146 is pulled into Form 145 through the Form 146 acknowledgement number.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Important point<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A foreign remittance exceeding \u20b95 lakh does&nbsp;<strong>not automatically<\/strong>&nbsp;mean that Form 146 is required.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The first question is:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Is the payment chargeable to tax in India?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Only after determining taxability should the taxpayer decide whether Part A, B, C or D of Form 145 applies.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">Form 146 User Manual: The Seven Panels Explained<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The official&nbsp;<strong>Form 146 User Manual<\/strong>&nbsp;divides the form into seven panels.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Particulars of the Remitter<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This captures details of the Indian person or entity making the payment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Particulars of the Remittee<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The overseas recipient\u2019s information has to be correctly reported.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Particulars of the Remittance<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This includes the amount, banking information, authorised dealer details and RBI purpose code.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Taxability Under the Income-tax Act<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Chartered Accountant must examine whether the transaction is taxable in India&nbsp;<strong>without first considering treaty relief<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Taxability Under DTAA<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If treaty relief is available, the transaction must separately be analysed under the applicable DTAA.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Details of Tax Deducted at Source<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The TDS treatment, applicable basis and date of deduction are reported.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. Verification<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Chartered Accountant verifies and electronically signs the Form.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This structure makes one thing clear:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Domestic tax law analysis and DTAA analysis are two separate steps.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A taxpayer should not simply apply a treaty rate without first determining the position under the Income-tax Act.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">7 Important Points from the New Form 146 User Manual<\/h1>\n\n\n\n<h2 class=\"wp-block-heading\">1. Remittance Amount Must Be Reported Before TDS<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Form 146 User Manual specifically states that the remittance amount should be entered&nbsp;<strong>before deduction of TDS<\/strong>, i.e. on a gross basis.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Invoice amount: \u20b910,00,000<br>TDS: \u20b91,00,000<br>Net amount paid abroad: \u20b99,00,000<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The relevant remittance amount for Form 146 reporting would ordinarily be the&nbsp;<strong>gross amount of \u20b910,00,000<\/strong>, subject to the facts of the transaction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This makes reconciliation between the invoice, books of account, TDS working and bank documents particularly important.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">2. RBI Purpose Code and Sub-Code Must Match the Actual Payment<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The official manual requires reporting of the&nbsp;<strong>RBI Purpose Code and Sub-Code<\/strong>&nbsp;from the RBI-prescribed list.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This may appear procedural, but it can become important during subsequent verification.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consider the following mismatch:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Agreement:<\/strong>&nbsp;Software licence<br><strong>Invoice:<\/strong>&nbsp;Technical support<br><strong>Books:<\/strong>&nbsp;Consultancy expense<br><strong>RBI purpose code:<\/strong>&nbsp;Other business services<br><strong>Form 146:<\/strong>&nbsp;Royalty not taxable<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even where the underlying payment is genuine, inconsistent characterisation can invite questions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The agreement, invoice, accounting treatment, tax analysis and banking purpose should therefore tell&nbsp;<strong>one coherent story<\/strong>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">3. CA Must Specifically Determine Whether the Transaction Is Taxable in India<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">One of the most significant fields in Form 146 asks the Chartered Accountant to state whether the transaction is&nbsp;<strong>taxable in India<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where the answer is \u201cYes\u201d, particulars such as the relevant section, taxable amount and rate of tax are required.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Where the answer is \u201cNo\u201d, the CA is expected to provide the&nbsp;<strong>reason for non-taxability<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is a crucial compliance point.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A foreign invoice does not automatically become non-taxable merely because the recipient is located outside India.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending upon the facts, payments for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>software;<\/li>\n\n\n\n<li>consultancy;<\/li>\n\n\n\n<li>technical services;<\/li>\n\n\n\n<li>professional services;<\/li>\n\n\n\n<li>royalty;<\/li>\n\n\n\n<li>commission;<\/li>\n\n\n\n<li>cloud services;<\/li>\n\n\n\n<li>subscription charges;<\/li>\n\n\n\n<li>marketing services;<\/li>\n\n\n\n<li>reimbursement;<\/li>\n\n\n\n<li>freight; or<\/li>\n\n\n\n<li>cross-border management services<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">may require detailed examination under the Income-tax Act and the relevant treaty.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">4. DTAA Benefit Requires Separate Treaty Analysis<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Where DTAA relief is claimed, Form 146 requires treaty-specific information, including the nature of payment, treaty particulars, Tax Residency Certificate information, taxable income and tax amount.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The official Form 146 FAQ further lists&nbsp;<strong>Form 41 and Tax Residency Certificate (TRC)<\/strong>&nbsp;among the documents relevant where DTAA benefit is claimed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For NRIs and businesses dealing with cross-border income, our&nbsp;<a href=\"https:\/\/caalokkumar.com\/nri-taxation-fema-services.html?utm_source=chatgpt.com\">NRI Taxation, DTAA and FEMA Services<\/a>&nbsp;page covers treaty relief, foreign tax matters, NRO repatriation and related cross-border compliance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Practical approach<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Before claiming DTAA relief, check:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Recipient\u2019s tax residence \u2192 TRC \u2192 prescribed additional information\/Form 41 where applicable \u2192 nature of payment \u2192 relevant DTAA Article \u2192 Permanent Establishment exposure \u2192 domestic tax position \u2192 treaty rate.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A treaty rate should be the&nbsp;<strong>result of tax analysis<\/strong>, not merely the rate mentioned by the overseas vendor.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">5. Capital Gain Remittances Require Detailed Transaction Data<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The Form 146 User Manual contains a specific field asking whether the remittance relates to&nbsp;<strong>capital gains<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the answer is yes, details such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>classification of capital gain;<\/li>\n\n\n\n<li>sale consideration;<\/li>\n\n\n\n<li>date of purchase;<\/li>\n\n\n\n<li>cost of purchase; and<\/li>\n\n\n\n<li>amount of capital gain<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">have to be provided.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is highly relevant for:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>NRI sale of property in India, sale of shares or securities, business exits and subsequent repatriation of proceeds.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For NRI property transactions, readers may also refer to our detailed guide on&nbsp;<a href=\"https:\/\/caalokkumar.com\/my-writing\/nri-property-seller-tds-tan-form-144-form-145-146-guide\/?utm_source=chatgpt.com\">TDS and Form 145\/146 where property is purchased from an NRI seller<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">6. Form 146 Has to Be Assigned to a Chartered Accountant<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The taxpayer cannot simply fill Form 146 himself.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The taxpayer must first add a Chartered Accountant on the e-Filing portal and assign&nbsp;<strong>Form 146<\/strong>&nbsp;to that CA.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Chartered Accountant must:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>be registered on the e-Filing portal;<\/li>\n\n\n\n<li>have an active CA profile;<\/li>\n\n\n\n<li>have a registered Digital Signature Certificate; and<\/li>\n\n\n\n<li>have Form 146 assigned by the taxpayer.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The CA then files the form electronically or through the prescribed offline utility.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">7. DSC Is Required \u2013 and UDIN Has an Important Operational Nuance<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The Income Tax Department confirms that Form 146 can be e-verified through&nbsp;<strong>Digital Signature Certificate (DSC) only<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">UDIN deserves separate attention.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The official FAQ explains that the&nbsp;<strong>Unique Document Identification Number (UDIN)<\/strong>&nbsp;helps authenticate the CA certificate through integration with ICAI.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, the latest Form 146 User Manual presently states that the&nbsp;<strong>UDIN field in the Form itself is optional at the data-entry stage<\/strong>. It further instructs the CA to validate UDIN through the \u201cView and Update UDIN\u201d functionality after filing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, it is safer to describe the present position as:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>UDIN authentication forms part of the Form 146 verification framework, although the current portal manual describes the UDIN field itself as optional while filling the Form.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Professionals should follow the live e-Filing portal and ICAI UDIN requirements applicable on the actual filing date.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">Can Form 146 Be Filed More Than Once in a Year?<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Yes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is&nbsp;<strong>no annual numerical limit<\/strong>&nbsp;on the number of Forms 146 that may be filed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Income Tax Department describes Form 146 as an&nbsp;<strong>event-based form<\/strong>, meaning that it is required before each remittance that independently satisfies the conditions prescribed under Rule 220.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This point is particularly important for businesses making multiple payments to overseas suppliers during a tax year.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">Is There a Due Date for Form 146?<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">There is no separately prescribed calendar due date.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, Form 146 must be filed&nbsp;<strong>before Form 145 Part C is filed<\/strong>, and Form 145 itself is required before the corresponding foreign remittance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Accordingly, Form 146 is best viewed as a&nbsp;<strong>transaction-linked pre-remittance compliance<\/strong>, rather than a monthly or quarterly return.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">Can Form 146 Be Revised After Filing?<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">This is another important practical point.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the Department\u2019s FAQ:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>a filed Form 146\u00a0<strong>cannot be edited or modified<\/strong>;<\/li>\n\n\n\n<li>it may ordinarily be withdrawn within\u00a0<strong>7 days of submission<\/strong>;<\/li>\n\n\n\n<li>once it has been used for filing Form 145 Part C, it becomes \u201cConsumed\u201d; and<\/li>\n\n\n\n<li>if Form 145 Part C is withdrawn, the corresponding Form 146 is also updated appropriately.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This is why the transaction should be checked carefully&nbsp;<strong>before certification<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Errors in beneficiary details, remittance amount, treaty position or tax rate should not be treated casually.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">What Documents Should Be Ready Before Form 146 Certification?<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The official FAQ refers to invoices, agreements\/contracts, remitter and remittee particulars, banking information and DTAA-related documents.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In practical terms, the documentation file should normally include, as relevant:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Document \/ Information<\/th><th>Why it matters<\/th><\/tr><\/thead><tbody><tr><td>Agreement \/ engagement letter \/ purchase order<\/td><td>Establishes actual nature of transaction<\/td><\/tr><tr><td>Invoice<\/td><td>Confirms amount and commercial description<\/td><\/tr><tr><td>Remittee details<\/td><td>Identifies overseas beneficiary<\/td><\/tr><tr><td>Bank and AD details<\/td><td>Supports remittance processing<\/td><\/tr><tr><td>RBI purpose code<\/td><td>Links banking purpose with transaction<\/td><\/tr><tr><td>TRC<\/td><td>Supports DTAA residence claim<\/td><\/tr><tr><td>Form 41 \/ treaty documentation<\/td><td>Supports treaty benefit, where applicable<\/td><\/tr><tr><td>Taxability working<\/td><td>Explains domestic-law position<\/td><\/tr><tr><td>DTAA working<\/td><td>Explains treaty treatment<\/td><\/tr><tr><td>TDS computation<\/td><td>Supports Section 393 compliance<\/td><\/tr><tr><td>Capital gain computation<\/td><td>Required for relevant remittances<\/td><\/tr><tr><td>Previous payments during tax year<\/td><td>Helps determine \u20b95 lakh aggregate threshold<\/td><\/tr><tr><td>Form 146 acknowledgement<\/td><td>Required for Form 145 Part C<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Taxpayers requiring end-to-end assistance with&nbsp;<strong>Form 145\/146, NRO remittance or foreign payment certification<\/strong>&nbsp;may refer to our&nbsp;<a href=\"https:\/\/caalokkumar.com\/form-145-146-ca-certificate-foreign-remittance.html?utm_source=chatgpt.com\">Form 145\/146 Foreign Remittance CA Certificate service<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">Special Relevance for NRIs: NRO Repatriation and Property Sale Proceeds<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The Form 146 framework is particularly important for NRIs who want to transfer eligible funds from India to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>an NRE account;<\/li>\n\n\n\n<li>their overseas bank account; or<\/li>\n\n\n\n<li>another permitted foreign destination.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Typical sources may include:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>property sale proceeds, rent, bank interest, fixed-deposit maturity, investments, inheritance or other tax-paid funds.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, income-tax documentation is only one part of the process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">NRO repatriation can also involve:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>FEMA conditions \u2192 source-of-funds documentation \u2192 tax payment evidence \u2192 Form 145\/146 \u2192 Form A2 \/ bank documentation \u2192 Authorised Dealer verification.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our dedicated&nbsp;<a href=\"https:\/\/caalokkumar.com\/nri-taxation-fema-services.html?utm_source=chatgpt.com\">NRI Taxation &amp; FEMA Compliance and Fund Repatriation Services<\/a>&nbsp;page covers NRI taxation, DTAA, NRO repatriation, property-sale issues and FEMA-related documentation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">NRIs seeking broader India tax support may also refer to&nbsp;<a href=\"https:\/\/caalokkumar.com\/nri-tax-consultant-dwarka-delhi.html?utm_source=chatgpt.com\">NRI Tax Consultant \u2013 ITR, DTAA, FEMA and Form 145\/146 Services<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">Form 146 and Section 393 TDS: Do Not Start With the TDS Rate<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">One common mistake in foreign remittances is to begin by asking:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>\u201cWhat percentage of TDS should be deducted?\u201d<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The correct sequence is different.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1 \u2013 Identify the nature of payment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Royalty? FTS? Professional fee? Commission? Business income? Capital gain? Reimbursement?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2 \u2013 Determine chargeability under Indian tax law<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Section 393 is the withholding provision, but taxability must be examined with reference to the charging and deemed-accrual provisions applicable to the transaction.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3 \u2013 Examine DTAA<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If treaty relief is available, determine the relevant Article and conditions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 4 \u2013 Determine withholding rate<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Only after the taxability analysis should the applicable TDS rate be determined.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 5 \u2013 Examine Section 395 route where relevant<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Where an Assessing Officer\u2019s certificate is obtained under&nbsp;<strong>Section 395(1) or 395(2)<\/strong>, Form 145 Part B applies and Form 146 is not required.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is particularly relevant in transactions where the gross remittance is significantly higher than the amount actually chargeable to tax.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">Foreign Remittance Compliance Checklist<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">Before making a material overseas payment, ask the following questions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Is the recipient correctly identified?<\/li>\n\n\n\n<li>Does the agreement explain the payment?<\/li>\n\n\n\n<li>Does the invoice match the agreement?<\/li>\n\n\n\n<li>Is the payment chargeable to tax in India?<\/li>\n\n\n\n<li>Which Section 393 withholding position applies?<\/li>\n\n\n\n<li>Is DTAA relief available?<\/li>\n\n\n\n<li>Is the TRC available?<\/li>\n\n\n\n<li>Is Form 41 or other treaty documentation required?<\/li>\n\n\n\n<li>Has the \u20b95 lakh annual threshold been checked?<\/li>\n\n\n\n<li>Does Form 145 Part A, B, C or D apply?<\/li>\n\n\n\n<li>Is an AO certificate under Section 395 preferable?<\/li>\n\n\n\n<li>Is Form 146 required?<\/li>\n\n\n\n<li>Does the RBI purpose code correctly describe the payment?<\/li>\n\n\n\n<li>Does the amount reconcile with the books and bank records?<\/li>\n\n\n\n<li>Has TDS been correctly deducted and deposited?<\/li>\n\n\n\n<li>Can the entire transaction be explained several years later during tax verification?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If the answer to the last question is uncertain, the documentation should be strengthened before remittance.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">Why the New Form 146 Process Is More Important Than It Looks<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The most significant feature of the new framework is not simply the renumbering of Form 15CB to Form 146.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is the&nbsp;<strong>structured digital linkage<\/strong>&nbsp;created between the commercial transaction and its tax treatment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The compliance trail can now broadly read:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Agreement \u2192 Invoice \u2192 Remittee \u2192 RBI Purpose Code \u2192 Indian Taxability \u2192 DTAA \u2192 TDS \u2192 Form 146 \u2192 Form 145 \u2192 Bank Remittance<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When each part says the same thing, the remittance is easier to defend.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When different documents describe the same payment differently, the risk of queries increases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That is why businesses making regular payments abroad should make&nbsp;<strong>foreign remittance tax review<\/strong>&nbsp;part of their internal payment process rather than obtaining a CA certificate only after the bank places the transaction on hold.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">Frequently Asked Questions on Form 146<\/h1>\n\n\n\n<h2 class=\"wp-block-heading\">Is Form 146 the same as old Form 15CB?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. Form 146 is the corresponding Accountant\u2019s Certificate under the Income-tax Rules, 2026 for remittances governed by the new framework from 1 April 2026.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is Form 146 required for every payment above \u20b95 lakh?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No. The payment must also be&nbsp;<strong>chargeable to tax<\/strong>, and the applicable Form 145 pathway must be determined. If an AO certificate under Section 395 has been obtained, Part B rather than Part C applies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Who can file Form 146?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A Chartered Accountant registered on the Income Tax e-Filing portal, having a valid DSC and to whom the taxpayer has assigned the Form.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is DSC compulsory?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. The official FAQ states that Form 146 is e-verified through the Chartered Accountant\u2019s registered DSC.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is UDIN mandatory in the Form 146 field?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The current User Manual says the UDIN field is&nbsp;<strong>presently optional while filling the Form<\/strong>, but also provides a separate UDIN validation process after filing. The Department\u2019s FAQ highlights UDIN as the authentication mechanism. Taxpayers and CAs should therefore follow the live portal procedure applicable on the filing date.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Can Form 146 be modified after filing?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">No. The Department says it cannot be edited after submission, although withdrawal is permitted within the prescribed conditions and time.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Is there a fixed due date?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There is no specific calendar due date, but Form 146 must precede Form 145 Part C and the remittance.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h1 class=\"wp-block-heading\">Conclusion: Form 146 Is a Tax Determination Exercise, Not Just a Bank Formality<\/h1>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;<strong>Form 146 User Manual 2026<\/strong>&nbsp;makes the Department\u2019s expectations much clearer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Chartered Accountant certifying a foreign remittance is expected to understand:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>what the payment represents, whether it is taxable in India, what DTAA relief is available, whether TDS has been correctly determined and whether the banking and tax documentation are consistent.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For taxpayers, the practical lesson is equally important:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Do not arrange the tax documentation after deciding to remit the money. Determine the tax position before initiating the remittance.<\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">For businesses making overseas vendor payments, NRIs repatriating Indian funds, property sellers remitting sale proceeds or taxpayers claiming DTAA relief, a properly documented transaction can prevent unnecessary banking delays and substantially reduce future tax-compliance risk.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For professional assistance, explore:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/caalokkumar.com\/form-145-146-ca-certificate-foreign-remittance.html?utm_source=chatgpt.com\">Form 145 &amp; Form 146 \u2013 CA Certificate for Foreign Remittance<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/caalokkumar.com\/nri-taxation-fema-services.html?utm_source=chatgpt.com\">NRI Taxation, FEMA Compliance &amp; Fund Repatriation<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/caalokkumar.com\/nri-tax-consultant-dwarka-delhi.html?utm_source=chatgpt.com\">NRI Tax Consultant \u2013 DTAA, Property Sale, FEMA &amp; Repatriation<\/a><\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Official References<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Income Tax Department \u2013 Form 146 User Manual<\/strong>: Filing workflow, seven panels, gross remittance reporting, RBI purpose codes, taxability, DTAA, capital gains, DSC and UDIN process.<\/li>\n\n\n\n<li><strong>Income Tax Department \u2013 Form 146 FAQs<\/strong>: \u20b95 lakh threshold, Part C applicability, Section 395 certificate, documents, filing frequency, withdrawal and Section 463 consequences.<\/li>\n\n\n\n<li><strong>Income-tax Rules, 2026 \u2013 CBDT Notification G.S.R. 198(E), dated 20 March 2026<\/strong>, effective 1 April 2026; Form 146 is prescribed under Rule 220.<\/li>\n\n\n\n<li><strong>CBDT FAQs on transition from Income-tax Act, 1961 to Income-tax Act, 2025<\/strong>: Forms 145\/146 applicable to remittances made on or after 1 April 2026.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Disclaimer: This article is for professional and educational information only. Foreign-remittance taxability depends upon the facts of each transaction, the applicable tax year, the Income-tax Act, DTAA, FEMA\/RBI requirements and supporting documentation.<\/em><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.incometax.gov.in\/iec\/foportal\/newformpage\/forms\/form146-UM\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"588\" src=\"https:\/\/caalokkumar.com\/my-writing\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-26-at-7.15.39-AM-1024x588.png\" alt=\"\" class=\"wp-image-1620\" srcset=\"https:\/\/caalokkumar.com\/my-writing\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-26-at-7.15.39-AM-1024x588.png 1024w, https:\/\/caalokkumar.com\/my-writing\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-26-at-7.15.39-AM-300x172.png 300w, https:\/\/caalokkumar.com\/my-writing\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-26-at-7.15.39-AM-768x441.png 768w, https:\/\/caalokkumar.com\/my-writing\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-26-at-7.15.39-AM-1536x883.png 1536w, https:\/\/caalokkumar.com\/my-writing\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-26-at-7.15.39-AM-2048x1177.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Form 146 User Manual @caalokkumar.com<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Form 146 User Manual 2026: New Foreign Remittance Filing Process, DTAA, TDS &#038; CA Certification Explained<\/p>\n","protected":false},"author":1,"featured_media":1621,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[392,1478,1508,1506,1507],"tags":[1498,685,1496,397,841,1493,839,1499,1497,1400,1502,64,1501,1503,1487,1504,1494,1505,1500],"class_list":["post-1619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-foreign-remittance","category-foreign-remittance-income-tax-scrutiny-2026","category-form-145-146-filing","category-form-146-filing","category-form-146-user-manual","tag-ca-certificate-for-foreign-remittance","tag-dtaa","tag-dtaa-foreign-remittance","tag-foreign-remittance","tag-form-145","tag-form-145-and-form-146","tag-form-146","tag-form-146-foreign-remittance","tag-form-15cb-new-form","tag-income-tax-act-2025-2","tag-nri-foreign-remittance","tag-nri-taxation","tag-nro-repatriation","tag-rule-220","tag-rule-220-income-tax-rules-2026","tag-section-393","tag-section-393-tds","tag-section-395","tag-section-395-certificate"],"_links":{"self":[{"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/posts\/1619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/comments?post=1619"}],"version-history":[{"count":1,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/posts\/1619\/revisions"}],"predecessor-version":[{"id":1622,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/posts\/1619\/revisions\/1622"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/media\/1621"}],"wp:attachment":[{"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/media?parent=1619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/categories?post=1619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/caalokkumar.com\/my-writing\/wp-json\/wp\/v2\/tags?post=1619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}