Form 146 is the new-age equivalent of Form 15CB under the Direct Tax Code 2025, required to be certified and filed by a Chartered Accountant (CA) before any foreign remittance above the prescribed threshold is processed. As of July 2026, Form 146 must be filed on the redesigned Income Tax e-filing portal. This guide is for practising CAs who handle cross-border payments and foreign remittance compliance for their clients. Key facts: (1) Form 146 replaces Form 15CB; (2) it is linked to the payer's Form 145 filing (the remitter's declaration); (3) non-filing attracts a penalty of up to ₹1 lakh per default transaction.

What is Form 146 for CAs?

Form 146 is a CA certification form under the Direct Tax Code 2025 (replacing the Income Tax Act 1961's Form 15CB). It certifies that a foreign remittance made by an Indian payer complies with applicable tax provisions, including Double Taxation Avoidance Agreement (DTAA) benefits where claimed. The CA must independently verify TDS applicability, applicable rates, and treaty eligibility before issuing certification. See our detailed comparison of Form 145 vs Form 146 and how they interact.

How Does Form 146 Differ from Form 15CB?

Form 146 is the direct successor to Form 15CB under the Direct Tax Code 2025. The core certification obligation remains the same, but the form has been renumbered, digitally integrated into the new e-filing portal, and includes additional fields for DTAA treaty article references. For a complete renumbering comparison, see our guide on Form 15CA/15CB replaced by Form 145/Form 146.

Feature	Old Form 15CB	New Form 146 (DTC 2025)
Governing Law	Income Tax Act, 1961 – Section 195(6)	Direct Tax Code 2025
Linked Form (Payer)	Form 15CA	Form 145
Portal	Old e-Filing Portal	New Income Tax e-Filing Portal
DTAA Treaty Article Field	Not mandatory	Mandatory if DTAA benefit claimed
CA DSC Requirement	Optional in some cases	Mandatory Digital Signature
Penalty for Non-Filing	₹1 lakh (Sec 271-I)	Up to ₹1 lakh per default (DTC)

When is Form 146 Required?

A CA must certify and file Form 146 before the remittance is effected whenever the foreign payment falls under a taxable category and the aggregate remittance exceeds the prescribed threshold in a financial year. The key triggers are:

• Royalties, fees for technical services (FTS), interest, dividends paid to a foreign company or non-resident individual
• Business income remitted to a non-resident where there is a likelihood of tax liability in India
• Transactions where the remitter's banker requires Form 145 + Form 146 together for RBI reporting
• Cases where the foreign payee claims DTAA benefit (TRC, Form 10F, No-PE Declaration must be checked by the CA)

Where Section 115A of the Direct Tax Code applies (Royalty/FTS paid to a foreign company without a DTAA claim), the TDS rate is 20% + applicable surcharge + cess. No ITR filing is required in such cases, but Form 146 certification is still mandatory. Read our detailed guide on Form 146 vs Form 15CB: CA Certification Scope for more on when each applies.

What Documents Does a CA Need for Form 146?

Before initiating the Form 146 filing on the portal, the CA must collect and verify the following from the client and the foreign payee:

From the Indian Payer (Client)

• Copy of the agreement/contract with the foreign party
• Invoice from the foreign party clearly stating nature of service
• Bank details of the foreign beneficiary (SWIFT/IBAN)
• PAN of the Indian payer (for portal login linkage)
• Purpose code for the remittance (as per RBI guidelines)

From the Foreign Payee (If DTAA Benefit Claimed)

• Tax Residency Certificate (TRC) issued by the foreign country's tax authority
• Form 10F (self-declaration by the non-resident on the Indian e-filing portal)
• No Permanent Establishment (No-PE) Declaration signed by an authorised signatory
• PAN card of the foreign entity (required for future ITR filing in India)
• DSC of the foreign authorised signatory (required for any portal submission on the foreign entity's behalf)

Note: If the foreign payee wishes to claim the DTAA rate and must also file an ITR in India (which is mandatory once a DTAA benefit is obtained), an Income Tax login must be created for the foreign company. This requires a PAN application and a DSC of the foreign signatory (obtained via email/phone OTP, video verification, address proof such as a driving licence, photo, and passport copy). A regular DSC of an Indian director or partner will not suffice for this purpose. For a country-specific checklist, see our Singapore royalty payment checklist covering Form 15CB/Form 146.

Step-by-Step: How to File Form 146 on the New E-Filing Portal

Step 1: Log In as CA on the E-Filing Portal

Navigate to the Income Tax e-filing portal and log in using your CA credentials (ICAI membership number linked to your PAN). Ensure your DSC is registered and valid. An expired or unregistered DSC will block submission at the final step.

Step 2: Accept the Client's 'Add CA' Request

The Indian payer (your client) must first log in and assign their CA for Form 146 filing under the "My CA" section. The CA must accept this assignment in the portal dashboard under Pending Actions before the form becomes accessible.

Step 3: Open Form 146 Under "For Your Attention"

Once the assignment is accepted, go to e-File > Income Tax Forms > Form 146. Select the relevant Assessment Year and the transaction for which certification is being provided. The portal will pre-populate the payer's PAN and basic details from the linked Form 145.

Step 4: Fill in Remittance and Tax Details

Complete all mandatory fields:

• Name and address of the remitter and recipient
• Country of the foreign payee and applicable DTAA (if any)
• Nature of remittance (Royalty, FTS, Interest, Dividend, Business Income, etc.)
• Gross amount of remittance and currency
• TDS amount deducted and the applicable rate
• If DTAA benefit is claimed: treaty article number, TRC details, Form 10F acknowledgement number
• Basis of CA's certification (documentary verification undertaken)

Step 5: Verify Supporting Documents

Attach or reference (as per portal requirements) the TRC, Form 10F, agreement, and invoice. As of July 2026, the portal allows document upload in PDF format (max 2 MB per document). Verify that all document dates are current, particularly the TRC, which must be valid for the financial year of remittance.

Step 6: Preview and Cross-Check

Use the portal's "Preview" feature to review the draft Form 146. Key items to cross-check before signing:

• TDS rate applied matches applicable DTAA rate or 20% (Section 115A equivalent) as applicable
• DTAA country-specific rates: UAE-India: 10%, Sweden-India: 10%, Switzerland-India: 10%, Russia-India: 10%, China-India: 10%, South Korea-India: 10%, Denmark-India: 20%, Italy-India: 20%
• No-PE declaration is on record for DTAA claims
• Income Tax login of the foreign entity exists if DTAA benefit is being availed

Step 7: Sign with DSC and Submit

Apply your CA's registered Digital Signature Certificate (DSC). The form cannot be submitted without a valid DSC. After DSC authentication, click "Submit." The portal will generate a unique Form 146 acknowledgement number. Provide this number to your client immediately, as the banker requires it along with Form 145 before processing the remittance.

Step 8: Provide Acknowledgement to Client for Bank Submission

Download the system-generated acknowledgement (PDF) and share it with your client. The client's bank (AD Category-I bank) will verify the Form 145 + Form 146 combination before releasing the foreign exchange. Keep a copy in your audit file as part of your engagement documentation.

What Are the Common Errors in Form 146 Filing?

• Expired DSC: The most frequent reason for failed submissions. Renew your DSC before the filing season begins.
• Mismatch between Form 145 and Form 146: Amounts, nature of payment, or payee details differing across both forms will cause portal rejection.
• Applying DTAA rate without TRC/Form 10F: Technically invalid. The CA certification will be deemed incorrect, exposing the CA to professional liability.
• Using incorrect rate under Section 115A equivalent: The applicable rate is 20% + surcharge + cess, not the older 10% or 15% rate. Always confirm the current rate before filing.
• No income tax login for the foreign entity: If the foreign company intends to claim a DTAA benefit in any future transaction, an Income Tax login must be pre-created. This cannot be done retrospectively after a notice is issued.

Our compliance guide on DTAA compliance checklist for Indian companies covers these errors in detail alongside a practical checklist for cross-border payments.

What is the Penalty for Not Filing Form 146?

Under the Direct Tax Code 2025, non-filing or incorrect filing of Form 146 by the CA attracts a penalty of up to ₹1 lakh per transaction. Additionally, the remitter (the CA's client) is also jointly at risk if the banker releases funds without proper documentation. CAs should also note that an adverse finding during a tax audit linked to a Form 146 non-compliance can trigger professional disciplinary proceedings under ICAI regulations.

For penalties related to other withholding certification forms, see our article on penalties for not filing Form 15G/15H.

Form 15CA/15CB to 145/146: The Renumbering Context

The Direct Tax Code 2025 renumbered most income tax forms. Form 15CA became Form 145 (the payer's declaration) and Form 15CB became Form 146 (the CA's certificate). The substantive compliance obligations have not changed, but CAs must ensure they are using the correct form numbers on the new portal to avoid technical defects. For the complete renumbering table, refer to our guide on Form 15CA/15CB vs Form 145/146 renumbering.

How Taxocity Supports CAs with Form 146 Compliance

Taxocity, with over three decades of experience in Indian tax compliance, provides end-to-end support for CAs and businesses managing Form 146 and cross-border remittance filings. Our team of real human experts assists with:

• Verifying DTAA applicability and correct treaty rates before Form 146 is filed
• Assisting in obtaining the foreign entity's DSC (for DTAA ITR filings)
• Creating the Income Tax login and PAN for foreign companies
• Drafting No-PE Declarations and reviewing Form 10F and TRC documents
• Coordinating between the CA, the client, and the AD Category-I bank
• Ensuring 100% compliance guarantee with complete documentation trails

Whether you are handling a one-off royalty payment to a Singapore vendor or managing recurring FTS payments to a European parent company, Taxocity's compliance team ensures no step is missed, and no penalty arises.

Key Takeaways

1. Form 146 is the Direct Tax Code 2025 replacement for Form 15CB, required for CA certification of foreign remittances.
2. It must be filed on the new Income Tax e-filing portal with a valid CA DSC before the remittance is made.
3. DTAA benefits require TRC, Form 10F, No-PE Declaration, and an active Income Tax login for the foreign entity.
4. The TDS rate under the Section 115A equivalent is 20% + surcharge + cess (not the older 10%/15% rates).
5. Foreign entities claiming DTAA benefits must file an ITR in India, requiring their own DSC and IT login.
6. Penalty for non-filing is up to ₹1 lakh per transaction under the Direct Tax Code 2025.
7. Form 146 (CA certificate) and Form 145 (payer declaration) must match exactly before bank submission.

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Disclaimer: This article is for informational purposes only and does not constitute tax advice. Tax laws and portal procedures may change. Please consult a qualified tax advisor or chartered accountant before taking any action based on information contained in this article.