Now Reading: Form 146 for foreign remittances: who needs CA certificate and how to file
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Form 146 for foreign remittances: who needs CA certificate and how to file
Form 146 for foreign remittances: who needs CA certificate and how to file
The Income Tax Department has begun a nationwide examination of overseas remittances flagged as suspicious, drawing attention to Form 146, a chartered accountant's certificate required for certain taxable foreign payments under the Income Tax Rules, 2026. The form is needed when the payment is taxable in India, exceeds Rs 5 lakh in a tax year, and the taxpayer has not obtained a certificate from the Assessing Officer.
Form 146 must be assigned by the taxpayer to a CA registered on the e-filing portal, who then fills in details of the remitter, recipient, remittance, bank, taxability, DTAA, and TDS, and submits it using a digital signature. Each remittance requires a separate Form 146, and the acknowledgement number is used while filing Form 145, Part C, which must be filed before the payment is made.
Indian Opinion Analysis
The IT department's scrutiny of flagged remittances comes amid a broader push to track high-value outflows and curb tax evasion. Under the new framework applicable from April 2026, Form 146 replaces the older Form 15CB, with the threshold of Rs 5 lakh unchanged. Taxpayers claiming DTAA benefits must provide a Tax Residency Certificate, without it, TDS may be deducted at higher domestic rates. The key date to watch is 1 April 2026, when the new forms take effect for all eligible remittances.
Source: livemint.com
This story was synthesised by AI from the source linked above. Methodology and corrections.
