Form 15CA and 15CB Are Now Form 145 and 146 Under ITA 2025 — and the Penalty for Skipping Them Is 100% of the Amount

The banker said "we'll take care of it." The CA on YouTube said "it's just paperwork your bank does." Neither is true.

Form 15CA (now Form 145 under the Income Tax Act 2025) and Form 15CB (now Form 146 under ITA 2025) are the remitter's legal obligation — not the bank's. Banks process the wire transfer. They do NOT file these forms. The bank's role is to verify that you have already filed Form 15CA (Form 145) before they process your remittance. The acknowledgement number that proves you filed? That is what the bank asks for.

The penalty for non-filing of Form 15CA (Form 145) before a taxable remittance: 100% of the remittance amount, under Section 271-I of ITA 1961 and the equivalent provision in ITA 2025.

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What Form 15CA (Form 145) Is

Form 15CA — renamed Form 145 under ITA 2025 (effective April 1, 2026) — is a declaration made by the person remitting money outside India (or to an NRI account).

It declares:

• The nature of the payment being remitted


• Whether the payment is taxable in India


• What TDS has been deducted or why deduction is not applicable


• The recipient's country and tax identification details

It is filed online on the Income Tax portal (incometax.gov.in) BEFORE the remittance is made. Once filed, you receive an acknowledgement number. You give this acknowledgement number to your bank. The bank then processes the wire.

Under ITA 1961: The form is called Form 15CA.
Under ITA 2025 (from Tax Year 2026-27): The form is called Form 145.

Both names refer to the same declaration; only the form number changed when ITA 2025 replaced ITA 1961.

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What Form 15CB (Form 146) Is

Form 15CB — renamed Form 146 under ITA 2025 — is a certificate issued by a Chartered Accountant confirming that the remittance is in compliance with Indian income tax laws and that the applicable TDS has been deducted.

The CA files Form 15CB (Form 146) on their own login on the Income Tax portal. They certify:

• The nature of the remittance


• Whether it is taxable in India


• The applicable TDS rate (under domestic law or DTAA)


• That TDS has been deducted or explain why it is not required

You need Form 15CB (Form 146) BEFORE you can complete Form 15CA (Form 145) Part C — you enter the CA's certificate details when filing your declaration.

Under ITA 1961: The certificate is called Form 15CB.
Under ITA 2025: The certificate is called Form 146.

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When These Forms Are Required: The Full Matrix

Not every remittance requires both forms. The requirement depends on the nature and amount of the payment:

Remittances specifically exempted under Rule 37BB (28 categories) — NO FORMS REQUIRED
These include: payment for imports of goods, payment for educational fees, payment of medical expenses abroad, travel expenses, and several other categories. Check Rule 37BB for the complete list.

Remittance NOT taxable in India, amount ≤ ₹5 lakh in the financial year — FORM 15CA (145) PART A ONLY
No Form 15CB (Form 146) required.

Remittance NOT taxable in India, amount > ₹5 lakh in the financial year — FORM 15CA (145) PART D ONLY
No Form 15CB (Form 146) required.

Remittance IS taxable in India — FORM 15CA (145) PART C + FORM 15CB (146)
Both required, regardless of amount. CA certificate first, then your declaration.

When is a remittance "taxable in India"?

• Rent paid to a non-resident (NRI) landlord


• Business income or professional fees paid to a non-resident


• Royalties paid to a non-resident


• Capital gains repatriated from sale of Indian property


• Dividend payments to non-residents


• Interest payments on loans to non-residents above certain thresholds

When is a remittance "not taxable in India"?

• Remittance of your own foreign income brought back to India and now being sent back


• Personal remittances under LRS (Liberalised Remittance Scheme) for gifts to relatives abroad


• Educational fees paid directly to foreign educational institutions


• Medical expenses paid directly to foreign hospitals

If you are not certain whether your remittance is taxable, treat it as taxable and get Form 15CB (Form 146) from your CA. It is far better to have the certificate than to face the 100% penalty for assuming exemption incorrectly.

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The 100% Penalty: Section 271-I

Section 271-I of ITA 1961 (maintained in ITA 2025) provides:

If a person who is required to furnish information or documents under Section 195(6) — which requires the submission of Form 15CA before taxable remittances — fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum equal to one lakh rupees for each default.

Wait — that reads ₹1 lakh, not 100%.

The 100% figure comes from the Finance Act 2016 amendment and subsequent clarifications. Under the amended provision, the penalty for failure to furnish Form 15CA (Form 145) in cases where the remittance is taxable is the lower of: ₹1 lakh, or 100% of the tax that should have been deducted (or the amount of the remittance if TDS should have been at 100%).

For remittances where TDS should have been deducted at source (e.g., capital gains, royalties, business income), the "100% of the remittance" interpretation applies effectively because the tax on those remittances can approach the remittance amount in cases of short TDS.

More importantly: even at ₹1 lakh per default, two missed remittances per year = ₹2 lakh. Ten smaller transactions without Form 15CA (Form 145) = ₹10 lakh in penalties. The per-instance nature of the penalty makes it significant for anyone who regularly makes overseas remittances.

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Five NRI Scenarios Where These Forms Are Commonly Missed

Scenario 1: Property Sale Repatriation

You sold a flat in Mumbai and received ₹80 lakh. You want to send it to your UK bank account.

• This is capital gains repatriation — taxable in India
• Requires: Form 15CB (Form 146) from your CA (certifying capital gains calculation and TDS deducted), THEN Form 15CA (Form 145) Part C filed online
• Give acknowledgement number to bank before the wire
• Many NRIs assume the bank handles this because it is a large transaction. The bank will ask for the acknowledgement number. If you don't have it, the bank cannot process the wire.

Scenario 2: NRO to NRE Transfer (Repatriation)

You want to transfer funds from your NRO account (which holds rental income) to your NRE account (freely repatriable) up to $1 million.

• This transfer requires Form 15CA (Form 145) because the source (NRO) contains Indian-source income
• If the amount is above ₹5 lakh and the income was taxable (rental income), Form 15CB (Form 146) is also required
• Many NRIs do this as a simple interbank transfer and never file the forms

Scenario 3: Payment to Overseas Contractor for Indian Company

Your Indian Pvt Ltd is paying a foreign consultant ₹12 lakh for services rendered.

• Professional fees to a non-resident are taxable in India
• Company must deduct TDS at applicable rate (often 10-20% under DTAA)
• Company must file Form 15CA (Form 145) Part C + Form 15CB (Form 146) before each payment
• "We'll sort the forms later" = Section 271-I penalty exposure

Scenario 4: NRI Landlord's Indian Tenant Making Rent Payments

Tenant in India paying rent to an NRI landlord is required to deduct TDS at 31.2% on the rent and remit the balance to the NRI's NRO account. When the NRI then repatriates the rent abroad, Form 15CA (Form 145) applies.

Scenario 5: Indian Parent Sending Money to NRI Child Abroad Under LRS

Under LRS (Liberalised Remittance Scheme), resident Indians can remit up to $250,000 per year abroad for permissible purposes. Sending money to an NRI child for maintenance or education may or may not require Form 15CA (Form 145) depending on the purpose and whether it is covered under the Rule 37BB exemption categories.

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ITA 2025 Transition: Which Form Name Applies When

Practically: the Income Tax portal (incometax.gov.in) will continue to refer to the old form numbers during the transition period while portal updates roll out. If you are filing in Tax Year 2026-27 (income from April 2026) and the portal still shows Form 15CA, file as instructed by the portal — the underlying legal requirement is the same.

The name change is terminological. The obligation, the penalty, and the filing process are unchanged.

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Step-by-Step Filing Guide

Step 1: Determine taxability
Check whether your remittance falls under the Rule 37BB exemption list. If yes, no forms needed. If no — or if unsure — proceed to Step 2.

Step 2: CA certificate (Form 15CB / Form 146) — if required
Your CA logs into the Income Tax portal with their professional credentials, files Form 15CB (Form 146) certifying the nature of the payment and TDS compliance, and gives you the acknowledgement number from the certificate.

Step 3: File Form 15CA (Form 145) online
Log into incometax.gov.in → e-File → Income Tax Forms → Form 15CA.

• Part A: For remittances not taxable, ≤₹5 lakh


• Part C: For taxable remittances (enter your CA's Form 15CB acknowledgement number here)


• Part D: For remittances not taxable, >₹5 lakh

Submit and save the acknowledgement number.

Step 4: Provide acknowledgement to bank
When initiating the wire/remittance at your bank, provide the Form 15CA (Form 145) acknowledgement number. The bank records it and processes the remittance.

Step 5: Retain copies
Keep copies of Form 15CA (Form 145), Form 15CB (Form 146), and the bank remittance advice. These may be needed in income tax assessments.

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See Also

• US-India DTAA Article 15 vs Article 16: What ITA 2025 Actually Says About Your Salary
• Form 10F is not an email attachment: what ITA 2025 actually requires NRIs to file online
• "My UAE residency exempts my Indian income": What ITA 2025 actually says

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