Form 145 Replaces Form 15CA: New Foreign Remittance Rules 2026

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Form 145 Replaces Form 15CA: New Foreign Remittance Rules 2026

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Form 15CA Is Now Form 145 — What Changed for Transactions Between ₹5 Lakh and ₹10 Lakh

If you've sent money abroad before, you know Form 15CA. Well, that form no longer exists. Under the Income Tax Rules 2026, Form 15CA and Form 15CB have been replaced by Form 145 and Form 146 respectively, effective April 1, 2026.

This isn't just a name change you can ignore. If you're planning a foreign remittance — for your child's education, overseas investment, property, or travel — and you show up with the old form, the bank won't process your transaction. Full stop.

Here's everything you actually need to know, broken down simply.

What Exactly Changed on April 1, 2026 — The 5-Point Summary

  • Form 15CA replaced by the new Form 145
  • Sending up to ₹5 lakh? Simpler process, less paperwork
  • Above ₹5 lakh? CA or Assessing Officer certificate is mandatory
  • Wrong information on the form? Expect a penalty or a blocked transaction
  • Sending above ₹10 lakh for investment? 20% TCS will be deducted

That's the short version. Now let's go deeper.

Why Did the Government Replace Form 15CA with Form 145?

People were finding ways around the system. Wrong purpose codes, amounts labelled as "gifts," mismatched declarations — all to reduce tax liability on outward remittances. The government wanted a tighter, fully digital trail on every rupee leaving India.

But here's what's important to understand: the transition from Forms 15CA and 15CB to Forms 145 and 146 represents an evolution rather than a disruption — the core objective of safeguarding tax compliance on foreign remittances remains unchanged. The name changed because the entire Income Tax Act was renumbered. Every section that moved got a new number, every rule that referenced those sections got updated, and every form that referenced those rules got renumbered.

Same obligation. New label.

What Is Form 145 and How Does It Work?

Form 145 is a mandatory declaration filed by any person responsible for making a payment to a non-resident (not being a company) or to a foreign company, before remitting funds outside India. Filing can be done online or through an offline utility, but once submitted, it cannot be modified — though it may be withdrawn within seven days.

One rule that catches people off guard: Form 145 must be filed before the payment is made — not after. The authorised dealer bank will not process the payment without it.

Think of it like a customs declaration, but for money leaving India.

Part A to Part D — Which One Do You Fill?

Form 145 has four parts. Choosing the wrong one means your transaction gets stuck and you'll likely need a fresh CA certificate.

Part A For taxable remittances up to ₹5 lakh during the financial year. Simplest process — no CA certificate needed.

Part B Above ₹5 lakh and you already have a certificate from an Assessing Officer (AO). Less common, but valid.

Part C Above ₹5 lakh with a CA certificate (Form 146). This is the most common scenario for most people.

Part D When the remittance isn't taxable at all. Part D is filled when the remittance is not taxable under the Act — other than payments referred to in Rule 220(3).

So before you sit down to file, figure out your amount and your tax situation. That determines your part.

20% TCS on Remittances Above ₹10 Lakh — When Does It Apply and Can You Get It Back?

If you're sending more than ₹10 lakh abroad — especially for overseas investments like shares or property — 20% TCS (Tax Collected at Source) will be deducted before the money goes out.

Example: You send ₹10 lakh → ₹2 lakh is held as TCS → ₹8 lakh reaches the recipient

That ₹2 lakh isn't lost. You can claim it back when you file your ITR. But here's the practical reality — refunds take a few months, so plan your cash flow accordingly. This depends on your specific situation, and the timeline isn't always predictable.

LRS Rules 2026 — How Much Can You Send Abroad in a Year?

Under RBI's Liberalised Remittance Scheme (LRS), an Indian resident can remit up to ₹2.06 crore (approximately $2.5 lakh) abroad per financial year. This covers education, medical treatment, travel, and investments.

Here's something many people don't realise — Form 145 is not required for individuals making remittances under the Liberalised Remittance Scheme that don't require prior RBI approval. If you're sending money for your child's college fees abroad through LRS, you likely won't need to file Form 145 at all. But confirm with your bank before assuming — each bank's internal documentation process can differ slightly.

Why UDIN Is Now Non-Negotiable

UDIN stands for Unique Document Identification Number — an 18-digit code that a Chartered Accountant generates for every certificate they issue. Your bank verifies it in real time against the ICAI database.

Fake CA certificates? The new framework incorporates UDIN and reduces duplication, enhancing transparency and supporting risk-based verification by tax authorities. The bank will catch it instantly. Don't risk it.

Quick Reference Table — Which Form 145 Part Applies to You?

Amount Form / Part What's Required
Up to ₹5 lakh Form 145 — Part A Self-declaration, no CA needed
Above ₹5 lakh Form 145 — Part B or C AO or CA certificate mandatory
Above ₹10 lakh (investment) Form 145 + 20% TCS TCS deducted, claim via ITR
Non-taxable transaction Form 145 — Part D Declaration only

Smaller Amounts Got Easier. Larger Amounts Got Stricter.

That's the honest summary. Under ₹5 lakh, the process is genuinely more streamlined than before. Above ₹5 lakh, you need a CA certificate, and above ₹10 lakh for investments, expect TCS on top. And if you get your Purpose Code wrong? That's where things get expensive.

Do This Before Your Next Foreign Remittance

  1. Pick the correct Purpose Code — this is the most common mistake people make
  2. Above ₹5 lakh? Get your CA or AO certificate ready in advance — it takes 1–3 days minimum
  3. Understand TCS — if it applies to you, plan to file ITR and claim the refund
  4. Use your bank's digital platform — paper submissions create delays and errors

What Happens If You File Form 145 Incorrectly?

Non-compliance or incorrect filing attracts penalties up to ₹1 lakh. Beyond the fine, your transaction gets held up. If TDS is miscalculated, extra tax gets deducted and you'll be waiting months to recover it through an ITR refund.

And if you submitted your form with errors? You have a 7-day window to withdraw and refile. After that, it's locked — and you'll need to start from scratch with a fresh form and possibly a new CA certificate.

What This Means for the Bigger Picture

The system is moving entirely digital and fully tracked. If your Form 145 filings don't reconcile with what your bank reported in Form 147, expect a notice. Honest, correctly filed transactions will move faster. Everyone else will face scrutiny.

The bottom line: the rules are actually cleaner than before. You just need to know which part applies to you, prepare your documents in advance, and stop treating Purpose Codes as a formality.

Frequently Asked Questions

Q1. Do I have to file Form 145 before or after the money is sent?

Before — and that's a hard rule with no exceptions. Your bank won't process the remittance without it. If you need a CA certificate alongside it (which you do above ₹5 lakh), that process alone takes 1 to 3 days. A lot of people get tripped up when they try to do this last-minute on the day of the transfer.

Q2. Can Form 145 be corrected after submission?

Once submitted, it can't be edited. You do have a 7-day withdrawal window — but only within those 7 days. Miss that window and you'll need to file a completely fresh form, which means getting another CA certificate if Part C applies to you. Double-check everything before you hit submit.

Q3. Is a CA certificate always required, or can I skip it sometimes?

For amounts up to ₹5 lakh, no CA certificate is needed — Part A covers you. Above ₹5 lakh on a taxable remittance, you'll need either a CA certificate (Form 146 for Part C) or an Assessing Officer certificate (for Part B). If you already have an AO certificate in hand, Part B works. Most regular remitters end up going the CA route since AO certificates take longer to obtain.

Q4. I'm sending money abroad for my child's university fees — does Form 145 apply to me?

Probably not. Individual remittances made under the Liberalised Remittance Scheme (LRS) that don't require RBI's prior approval are generally exempt from Form 145. Education abroad typically falls under this exemption. That said, your bank may still ask for documentation internally — so call your bank's forex desk before you show up to transfer.

Q5. What's the penalty for choosing the wrong Purpose Code on Form 145?

Up to ₹1 lakh in penalties, plus your transaction could be blocked entirely. The Purpose Code tells the Income Tax Department why the money is leaving India — it's not a minor checkbox. Getting it wrong can trigger additional TDS deductions, a tax notice, or both. The RBI maintains a full list of valid Purpose Codes; spend five minutes on it before you file.

 

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