As of 2026, Form 146 replaces Form 15CB as the CA certificate required before foreign remittances above specified thresholds. While both forms require a Chartered Accountant to certify tax compliance on outward payments, Form 146 expands the scope of what a CA must verify. It introduces additional disclosures on DTAA applicability, permanent establishment risk, and beneficial ownership. If your business makes cross-border payments, this change directly affects your compliance workflow.

• Form 15CB was introduced under Rule 37BB of the Income Tax Rules, 1962.
• Form 146 is part of CBDT's 2025-26 revamp of foreign remittance reporting to align with OECD BEPS standards.
• Applicable to payments to non-residents where TDS under Section 195 is triggered.

What is Form 15CB?

Form 15CB is a certificate issued by a Chartered Accountant confirming that the applicable taxes on a foreign remittance have been deducted at source. It is required under Section 195 of the Income Tax Act, 1961 (applicable for remittances made before the Direct Tax Code, 2025 comes fully into force) before a bank processes a foreign outward payment. The CA certifies the nature of the payment, the applicable tax rate (either under domestic law or DTAA), and that the correct TDS has been deducted.

Under Form 15CB, the CA's certification scope was primarily limited to:

• Nature of the remittance and underlying contract
• Country of residence of the payee and applicable DTAA
• TDS rate applied (under domestic law or treaty rate, whichever is beneficial)
• Confirmation that TDS has been or will be deposited
• Amount of remittance and currency

Form 15CB was to be filed alongside Form 15CA, which is a self-declaration by the remitter. Together, they formed the compliance backbone for cross-border payments in India.

What is Form 146?

Form 146 is the new CA certification form introduced by the Central Board of Direct Taxes (CBDT) to replace Form 15CB. It comes into effect as part of India's updated foreign remittance compliance framework under the Direct Tax Code, 2025. Form 146 retains the core requirement of a CA certifying tax deduction on foreign payments, but significantly broadens what the CA must examine and attest to.

The introduction of Form 146 reflects India's commitment to international tax transparency standards, including the OECD's Base Erosion and Profit Shifting (BEPS) framework. Businesses dealing with royalties, fees for technical services, interest, and dividend payments to foreign entities will feel the most impact.

Certification Scope: Form 15CB vs Form 146

The most critical question for businesses and CAs alike is: what has changed in what the CA must certify? The table below captures the key differences.

Certification Area	Form 15CB (Old)	Form 146 (New)
Nature of remittance	Required	Required
TDS rate (domestic law or DTAA)	Required	Required
DTAA applicability and specific article cited	General reference	Mandatory detailed reference with article number
Tax Residency Certificate (TRC) verification	Not explicitly required by CA	CA must confirm TRC has been obtained and reviewed
Form 10F verification	Not required	CA must confirm Form 10F is filed by payee
Permanent Establishment (PE) risk assessment	Not required	CA must certify no PE is created in India
Beneficial ownership declaration	Not required	Required to confirm payee is beneficial owner
Principal Purpose Test (PPT) assessment	Not required	Required under BEPS MLI provisions
Confirmation of PAN of foreign payee	Optional	Mandatory where payee has Indian income

In essence, Form 146 transforms the CA's role from a tax deduction verifier to a comprehensive cross-border transaction compliance officer. The CA must now look beyond the payment itself and assess the underlying commercial and legal structure.

What Stays the Same?

Despite the expanded scope, several fundamentals remain unchanged:

• A CA certificate (now Form 146 instead of Form 15CB) is still mandatory before the remitting bank processes the payment.
• The remitter must still file a self-declaration form (the equivalent of Form 15CA) alongside the CA certificate.
• The TDS deduction obligation under the applicable provision of the Direct Tax Code, 2025 remains on the remitter.
• The threshold above which CA certification is required remains unchanged for most categories of payment.
• Payments listed in Rule 37BB (or its equivalent under the new framework) that are exempt from certification continue to be exempt.
• The CA signs the certificate using their digital signature certificate (DSC).

What Does This Mean for Your Business?

For Indian companies making payments to foreign vendors, parent companies, or consultants, Form 146 means more documentation is required before approaching your CA. The CA cannot complete Form 146 without:

• A valid Tax Residency Certificate (TRC) from the foreign payee
• A filed Form 10F from the foreign payee (for DTAA benefits)
• A No PE Declaration from the foreign company confirming it does not have a Permanent Establishment in India
• Beneficial ownership confirmation documents
• Underlying contract or invoice confirming the nature of the payment
• PAN of the foreign entity (where applicable)

For payments like SaaS payments to foreign companies or royalties and fees for technical services, the compliance burden increases substantially. Companies that previously managed remittances with minimal documentation will need to build a more systematic pre-payment compliance process.

Does Form 146 Increase CA Liability?

Form 146 increases the scope of what a CA certifies, and with it, the professional exposure. Under Form 15CB, a CA's liability was largely confined to verifying TDS computation. Under Form 146, certifying PE risk, beneficial ownership, and PPT compliance involves legal and factual assessments that go beyond arithmetic.

CAs are expected to exercise professional judgment on complex international tax questions. This means businesses may face higher professional fees for Form 146 compared to Form 15CB, and CAs may require more detailed indemnities or representations from clients before signing.

How Does DTAA Interact with Form 146?

Under Form 15CB, citing a DTAA article was relatively straightforward. Under Form 146, the CA must:

1. Confirm the payee holds a valid TRC for the relevant tax year.
2. Confirm Form 10F has been filed by the payee on the Indian income tax portal.
3. Identify the specific DTAA article and clause under which the reduced rate applies.
4. Assess whether the Multilateral Instrument (MLI) modifies the applicable DTAA provision.
5. Certify that the Principal Purpose Test (PPT) under the MLI is not breached by the arrangement.

For reference, common DTAA withholding rates for royalties and fees for technical services (FTS) include: India-UAE at 10%, India-Singapore at 10%, India-Switzerland at 10%, India-UK at 10-15%, and India-USA at 10-15%, subject to treaty conditions. Where DTAA benefit is not available, the rate under Section 115A of the Income Tax Act (20% + surcharge + cess) applies.

If you are dealing with cross-border royalty or FTS payments, our team has detailed DTAA compliance checklists for Indian companies to help you stay on track.

Applicable TDS Rates Under Form 146

The TDS rates that a CA must certify under Form 146 vary by payment category and taxpayer type:

Payment Type	Rate for Individuals (Non-Resident)	Rate for Other Than Individuals (Foreign Companies)	DTAA Rate (if lower)
Interest	20% + surcharge + cess	20% + surcharge + cess	Typically 10-15%
Royalties / FTS (Section 115A)	20% + surcharge + cess	20% + surcharge + cess	Typically 10-20%
Dividends	20% + surcharge + cess	20% + surcharge + cess	Typically 10-15%
Capital Gains (short-term)	As per slab / 15-30%	15-40%	As per treaty

The CA's certification under Form 146 must explicitly state whether the domestic rate or the DTAA rate is being applied, and why.

How Taxocity Helps with Form 146 Compliance

Taxocity, with more than three decades of experience in Indian tax compliance, provides end-to-end support for foreign remittance certifications. Our team of real human experts handles everything from document collection to CA certification and bank submission, ensuring 100% compliance.

Our Form 146 service covers:

• Reviewing the nature of the payment and applicable TDS provisions under the Direct Tax Code, 2025
• Coordinating with the foreign payee to collect TRC, Form 10F, and No PE Declaration
• Obtaining PAN for the foreign entity if required
• DTAA analysis including MLI applicability and PPT assessment
• CA certification and digital signing of Form 146
• End-to-end coordination with your bank for smooth processing

We also assist with PAN card applications for foreign companies and No PE Declarations for DTAA compliance - both of which are now required under Form 146.

Key Takeaways

1. Form 146 replaces Form 15CB as the CA certificate for foreign remittances as part of India's Direct Tax Code, 2025 reforms.
2. The CA's certification scope is significantly broader under Form 146 - covering PE risk, beneficial ownership, DTAA article-level analysis, and PPT compliance.
3. The core obligation remains - a CA must certify before the bank processes the remittance, and TDS must be deducted at the applicable rate.
4. More documents are required upfront: TRC, Form 10F, No PE Declaration, and beneficial ownership proof are now part of the CA's checklist.
5. CA liability and fees may increase due to the expanded certification scope.
6. DTAA users must be especially careful - MLI provisions and the Principal Purpose Test add a new layer of scrutiny under Form 146.
7. TDS rates under Section 115A remain at 20% + surcharge + cess for royalties and FTS where DTAA benefit is not claimed.

Frequently Asked Questions

When does Form 146 become effective?

Form 146 is part of the Direct Tax Code, 2025 framework. As of 2026, it is the operative CA certification form for foreign remittances above prescribed thresholds, replacing Form 15CB under the old Income Tax Act, 1961 framework.

Is Form 15CB still accepted by banks in 2026?

Once Form 146 comes into mandatory effect under the Direct Tax Code, 2025 transition, banks are required to accept only Form 146 for new remittances. Businesses should confirm with their bank and CA the applicable form for their specific transaction date.

Who signs Form 146?

Form 146 must be signed by a practising Chartered Accountant using their DSC. The CA's ICAI membership number and firm registration number are mandatory disclosures on the form.

Does the foreign company need to provide a No PE Declaration for Form 146?

Yes. Under Form 146, the CA must certify that the foreign payee does not have a Permanent Establishment in India. This requires a formal No PE Declaration from the foreign entity, typically signed by an authorised signatory with their own DSC or notarised signature.

Do small foreign payments still require Form 146?

Certain categories of payments listed under the prescribed rules are exempt from Form 146 certification - similar to the exemptions that existed under Rule 37BB for Form 15CB. Check with your CA whether your specific payment falls under an exempt category.

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Disclaimer: This article is for general informational purposes only and does not constitute tax advice, legal advice, or professional guidance. Tax laws and regulations are subject to frequent changes. Please consult a qualified Chartered Accountant or tax advisor for advice specific to your situation before making any decisions regarding foreign remittances, TDS deductions, or related compliance obligations.