Reporting Foreign Remittances Under Rule 220: Choosing the Part of Form 145
This article sets out how an assessee or authorised dealer chooses between the parts of Form 145 and when Form 146 is needed for payments abroad processed under the Income-tax Act, 2025 and the Income-tax Rules, 2026.
The regime applies to remittances from 1 April 2026 and broadly replaces Forms 15CA and 15CB. A wrong part, or a missing accountant's certificate, leaves the payer exposed to short-deduction consequences even when the portal accepts the filing. The position below reflects official material checked on 14 October 2026.
Statutory Basis
The reporting requirement rests on Section 397(3)(d) of the 2025 Act and Rule 220 of the 2026 Rules. Whether tax must be withheld depends on Section 393, and on any certificate or order obtained under Section 395. Eligibility to certify as an accountant is governed by Section 515(3)(b).
Provision by Provision: Rule 220
Rule 220(1): Parts A, B and C
- Part A applies where the chargeable payment, or the aggregate of the relevant chargeable payments in the tax year, does not exceed Rs 5 lakh.
- Part B applies where the chargeable amount exceeds Rs 5 lakh and the payer holds the prescribed Assessing Officer certificate or order under
Section 395(1)orSection 395(2). - Part C applies to a larger chargeable remittance supported by an accountant's certificate in Form 146. Where Part B is available and filed, Part C is not needed.
The Rs 5 lakh test is measured on the tax-year aggregate, not per bank transfer. Splitting a chargeable remittance into smaller transfers does not preserve Part A.
Rule 220(2): Part D
Part D is the general requirement where the payment is not chargeable to tax under the Act, subject to the exceptions in Rule 220(3).
Rule 220(3): Cases where nothing is reported
No information is to be furnished for: