Apply Form 146 (Form No.15CB) CA Certificate Online for Payment Outside India
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CA Sagar Batra
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What is Form 146 (formerly Form 15CB) CA Certificate for Payment to Non Resident?
Form 146 (formerly Form 15CB) CA Certificate for Payment to Non Resident is a document issued by a Chartered Accountant to certify tax compliance on payments made to foreign entities. Closely linked to Form 145 — which acts as the declaration by the remitter — Form 146 is required before the bank processes any taxable payment to a non-resident that exceeds ₹5,0,000.
This certification ensures that the correct TDS has been deducted, proper tax treatment under DTAA (if applicable) has been considered, and all details match what will be reported in Form 145. By following this two-step compliance (Form 145 declaration and Form 146 certificate), you help safeguard your business from hefty penalties, interest, and disallowed expenses.
For practical compliance: Obtain all supporting documents like invoices, contracts, and the Tax Residency Certificate (TRC) from the beneficiary. Share these with your CA, who will review if the payment — such as a consultancy fee to the US or dividend to an NRI — is taxable in India, calculate the proper TDS (sometimes at a beneficial DTAA rate), and complete Form 146 using a UDIN for verification. Once Form 146 is filed, its acknowledgment is mandatory for the completion of Form 145 and for getting bank clearance.
For example, if you're sending royalties to a consultant in the UK (taxable in both India and the UK), your CA will check if DTAA relief can lower the withholding rate — helping you save costs while staying 100% compliant. This process ensures your remittance is approved smoothly, with no risk of Income Tax scrutiny or penalty.
| Feature | Old System (Pre-2025) | New System (Income Tax Act, 2025) |
|---|---|---|
| Remitter's Declaration | Form 15CA | Form 145 |
| CA Certificate | Form 15CB | Form 146 |
| Threshold for Certificate | ₹5,0,000 | ₹5,0,000 |
| Submission Mode | Digital (e-filing portal) | Real-time Portal Validation |
| Key Requirement | UDIN mandatory | UDIN + TRC mandatory |
| Paper-based submission | Accepted | Not Accepted |
Introduction — Why Foreign Payments Need a CA Certificate
Sending money abroad used to be a paperwork nightmare. Whether you are paying a freelance web developer in the US or buying machinery from Germany, the Indian government requires you to deduct the correct taxes before the money leaves the country.
This is where Form 146 (formerly Form 15CB) CA Certificate for Payment to Non Resident comes in. In this guide, we break down exactly what this certificate is, why you need it, and how to stay compliant with tax rules in 2026 — without the headache.
When you send money outside India, the Income Tax Department wants to ensure that any applicable tax on that income is collected first. Form 146 is essentially a tax determination certificate, and it must be obtained before you complete Form 145 (the declaration required prior to remittance). This crucial sequence ensures your transaction is transparent and traceable for both the bank and tax authorities.
A practicing Chartered Accountant (CA) reviews your transaction, confirms the taxability of the remittance (including considering any Double Taxation Avoidance Agreement — DTAA — relief), and issues Form 146 to certify that correct TDS has been deducted. For example, if you are paying for software licensing to a US company (which may be taxable in India under domestic law but eligible for lower TDS due to the DTAA), your CA will factor this in to keep your tax outgo optimal. Without this certification, banks will not process payments exceeding ₹5,0,000 to non-residents.
To obtain and file Form 146, gather these practical documents:
- ✓ Invoice or contract for the payment
- ✓ Beneficiary's Tax Residency Certificate (TRC) and tax details
- ✓ Any relevant DTAA documents
- ✓ PAN of the remitter and TAN (if available)
- ✓ Non-resident's Tax Identification Number (TIN)
Your CA will then: analyse the nature of the transaction and identify if the payment is taxable in India; calculate the correct TDS rate factoring domestic tax law and DTAA (when applicable); issue and file Form 146 on the Income Tax portal, generating a UDIN for authenticity; and provide you with the acknowledgment, which must be referenced in Form 145 before your bank will process the foreign remittance.
Real-life example: An Indian exporter paying commissions to a foreign agent needs to check if the commission is taxable in India. The CA will check the India-UK DTAA, confirm if a reduced TDS applies, and prepare both forms. Missing or incorrect documentation can result in the payment being blocked or a hefty ₹1 lakh penalty.
Why CA Certificate is Required for Non-Resident Payments
Banks will not process overseas transfers without proper documentation. You need a CA certificate for non-resident payment for several reasons:
What is TDS on Foreign Payments?
When you pay a non-resident, the money they earn might be taxable in India. As the person making the payment, you must deduct this tax before sending the money. This is called TDS on non-resident payments.
| Type of Payment | Example | Applicable TDS Section | Typical Rate |
|---|---|---|---|
| Software / Cloud Services | Indian startup paying US SaaS | Section 9(1)(vi) — Royalty | 10–20% (DTAA may reduce) |
| Consultancy / Professional Fees | Marketing consultant in Dubai | Section 9(1)(vii) — FTS | 10–20% |
| NRI Freelancer | Graphic designer payment | Section 195 | As per DTAA |
| Royalties | Publishing rights to UK author | Section 9(1)(vi) | 10–15% with DTAA |
| Dividend to NRI | Dividend on shares held by NRI | Section 196D / 195 | 20% (or DTAA rate) |
| Commission to Foreign Agent | Export commission to Germany | Section 195 | 10–20% |
Who Needs Form 146 CA Certificate?
You will need this certificate if you fall into any of these categories and are sending money abroad:
| Category | Example Payment | Certificate Required? |
|---|---|---|
| Business Owners | Royalties, technical fees, licensing, software | Yes |
| Exporters & Importers | Settling foreign trade commissions, freight | Yes |
| Startups | Overseas contractors, SaaS subscriptions >₹5L | Yes |
| Individuals | Rent to NRI landlord, professional fees to NRI | Yes |
| HR / Payroll Teams | Salary to foreign employee, director fees | Yes |
| Personal (LRS gifts) | Family maintenance, education, travel | Usually No |
Key Details Included in Form 146 CA Certificate
When your CA fills out the Form 146 CA certificate for payment to non-resident, they include several crucial details that the bank and Income Tax Department verify:
| Section | What It Covers |
|---|---|
| Deductor Details | Your name, PAN, TAN — the remitter who is liable to deduct TDS |
| Remittee Details | Non-resident's name, country of residence, TIN/PAN (if available) |
| Nature of Payment | Category from RBI's list — royalty, technical fee, dividend, commission, etc. |
| Taxability Analysis | Whether payment is chargeable to tax in India under domestic law |
| DTAA Relief | Applicable DTAA article, reduced rate claimed, TRC details |
| TDS Calculation | Exact tax rate applied, amount deducted, actual remittance after TDS |
| CA Verification | CA's PAN, ICAI membership number, DSC, UDIN — for authenticity |
Form 146 vs Form 145 — Complete Comparison
If you have sent money abroad before, you probably remember Forms 15CA and 15CB. With the introduction of the updated tax rules, this compliance process has been reorganised. Now, the sequence is clear: Form 145 must be filed as a declaration for every payment to a non-resident, and if the remittance exceeds ₹5,00,000 and is taxable in India, you must also secure and file Form 146 — the Chartered Accountant's certificate.
| Parameter | Form 145 (formerly 15CA) | Form 146 (formerly 15CB) |
|---|---|---|
| Who files it? | The remitter (you / your company) | Your Chartered Accountant (CA) |
| What is it? | Declaration of remittance details | Tax determination certificate |
| When required? | For every foreign remittance | Only when remittance is taxable & >₹5L |
| Filed on | Income Tax e-filing portal | Income Tax e-filing portal (by CA) |
| DSC required? | Optional (EVC allowed) | Mandatory (CA's DSC) |
| UDIN required? | No | Yes — mandatory from CA |
| TRC required? | Not directly | Yes — if DTAA relief claimed |
| Sequence | Filed after Form 146 (Part C) | Filed first — UDIN referenced in Form 145 |
Why is this pairing so important? Filing Form 145 without obtaining Form 146 when required puts you at risk of remittance delays, a penalty of up to ₹1 lakh under the Income Tax Act, and possible loss of expense deductions if TDS is not properly handled. The bank will block your payment if proper documentation is missing.
Together, Form 145 and Form 146 establish your official foreign remittance certificate India — making your transaction transparent, tax-compliant, and protected from future tax department scrutiny.
Need the format right now? Download Form 146 CA Certificate PDF to get started instantly.
Sample Form 146 — Key Particulars (Dummy Preview)
Below is a sample of what Form 146 looks like when completed by a CA for a typical software licensing payment to a US company.
| Particulars of the Remitter (Sender) | |
|---|---|
| Name | Apex Tech Solutions Pvt. Ltd. |
| PAN | AABCA1234D |
| Address | 402, Cyber City Tower, Sector 24, Gurugram, Haryana – 122002, India |
| TAN | DELH12345F |
| Status / Residential Status | Company / Resident |
| Contact Details | finance@apextech.in | +91 98765 43210 |
| Particulars of the Remittee (Recipient) | |
| Name | CloudWave Inc. |
| Country of Residence | United States of America |
| TIN (US) / PAN (India) | EIN: 98-7654321 / Not Available |
| Address | 500 Technology Drive, Suite 200, San Jose, California 95110, USA |
| Particulars of the Remittance (Fund Transfer) | |
| Currency & Amount | USD 12,000 (Approx. ₹10,02,000) |
| Nature / Purpose Code | Software Licenses / S0809 |
| Bank (IFSC) | HDFC0001234 — HDFC Bank, Sector 18, Gurugram |
| Details in Respect of Taxability & DTAA | |
| Taxable in India? | Yes — Section 9(1)(vi) Royalty |
| DTAA Relief Claimed? | Yes — India-US DTAA, Article 12 (TRC Obtained) |
| Tax Rate (Domestic vs DTAA) | 25% reduced to 10% as per DTAA |
| Details of Tax Deducted at Source | |
| Amount of TDS Deducted | ₹1,00,200 (@ 10% DTAA rate) |
| Actual Remittance After TDS | USD 10,800 / ₹9,01,800 |
| Verification by Accountant | |
| CA Name & Membership | CA Priya Sharma (123456) |
| UDIN | 26123456ABCDE7890 |
| ✓ Certificate Issued & Filed — April 18, 2026 | |
How to Download Form 146 CA Certificate PDF
Getting your form is quick and easy. Follow these simple steps for a smooth Form 146 CA certificate download:
How a CA Issues the Form 146 Certificate
You cannot generate Form 146 on your own. Here is how the process works:
Pro Tip: Always ensure your CA has the latest Tax Residency Certificate (TRC) of the recipient before filing. Without a valid TRC, claiming a lower TDS rate under DTAA is not permissible under the Income Tax Act, 2025.
Real Payment Scenarios — Case Studies
See how Form 146 CA certificate for payment to non-resident works in practice across common business situations.
Remitter: Indian Startup, Bengaluru
Remittee: CloudWave Inc., USA
Payment: ₹10,02,000 (USD 12,000)
Nature: Software License Fee
Taxability: Yes — Royalty u/s 9(1)(vi)
DTAA Applied: India-US DTAA, Article 12
Domestic TDS: 25% = ₹2,50,500
DTAA Rate: 10% = ₹1,00,200
Remitter: Tenant in Mumbai
Remittee: NRI Landlord, UK
Payment: ₹7,20,000/year
Nature: Income from Immovable Property
Taxability: Yes — Section 9(1)(i)
DTAA Applied: India-UK DTAA, Article 6
TDS Rate: 30% on rental income
TDS Amount: ₹2,16,000
Remitter: Indian Publisher, Delhi
Remittee: Author / Consultant, UK
Payment: ₹8,50,000 (GBP 7,500)
Nature: Royalty — Book Publishing Rights
Taxability: Yes — Section 9(1)(vi)
DTAA Applied: India-UK DTAA, Article 13
Domestic TDS: 20% = ₹1,70,000
DTAA Rate: 15% = ₹1,27,500
Key Takeaway: In all three cases above, obtaining Form 146 from a CA before remittance was mandatory. Claiming DTAA benefits correctly saved significant TDS amounts while keeping the business 100% compliant. Without Form 146, the bank would have blocked all three transfers.
Compliance & Penalties for Non-Compliance
Skipping this step is a costly mistake. If you fail to deduct TDS or submit a valid CA certificate for foreign remittance, the consequences are severe:
| Violation | Consequence | Relevant Section |
|---|---|---|
| Failure to deduct TDS before remittance | Business expense disallowed entirely | Section 40(a)(i) |
| Form 146 not obtained when required | Penalty up to ₹1,0,000 per transaction | Section 271-I |
| Incorrect TDS rate applied | Interest on shortfall + recovery of unpaid TDS | Section 201 |
| Form 145 filed without Form 146 UDIN | Bank blocks the remittance immediately | FEMA / RBI Circular |
| TDS deducted but not deposited | Prosecution + 7.5% p.a. interest | Section 276B |
Important: The Income Tax Department can disallow your business expenses under Section 40(a)(i) if TDS was not deducted — this means paying tax on an amount you already paid out as expense. Additionally, you could face interest charges on the unpaid tax and penalty fees matching the exact TDS amount you failed to deduct.
Glossary — Key Terms for Form 146 Compliance
Understanding these terms is essential before applying for a Form 146 CA certificate for payment to non-resident.
A treaty between two countries that prevents the same income from being taxed twice. India has DTAAs with 90+ countries. When applicable, your CA uses DTAA to reduce the TDS rate on foreign payments — often from 20–25% to as low as 10%.
A tamper-proof 18-digit number generated by the ICAI for every certificate issued by a CA. Mandatory for Form 146. It allows banks, RBI, and the Income Tax Department to verify the authenticity of the certificate at udin.icai.org in real time.
A certificate issued by the tax authority of the non-resident's country confirming their tax residency. Required to claim DTAA benefits. For example, a US company must obtain a TRC from the IRS to claim India-US DTAA relief. Without TRC, DTAA rates cannot be applied.
A 10-digit alphanumeric number issued by the Income Tax Department to entities responsible for deducting TDS. Required by the remitter (deductor) to deposit TDS and file TDS returns. Mandatory for Form 146 if available.
The central law governing all foreign exchange transactions in India (1999). Under FEMA, the RBI regulates outward remittances, and banks must ensure TDS compliance (verified via Form 145 + Form 146) before processing any overseas transfer.
Tax collected at the source of income. When paying a non-resident, the Indian remitter must deduct TDS before sending the money abroad. The deducted TDS is deposited with the government, and a TDS certificate is issued to the non-resident.
A 10-digit alphanumeric identifier issued by the Income Tax Department of India. Required for both remitter and remittee in Form 146. If the non-resident does not have a PAN, Section 397(2) of the Income Tax Act applies (higher TDS rate).
Payment for managerial, technical, or consultancy services rendered by a non-resident. Taxable in India under Section 9(1)(vii). Commonly applies to IT services, engineering consultancy, and advisory fees paid to foreign entities.
Latest Updates — 2026
Full transition to Form 145 & Form 146 system
The Indian government has fully digitised and simplified cross-border transactions. In 2026, the Income Tax portal completed the transition to the Form 145 and Form 146 system. Banks now require real-time validation of these forms, meaning manual, paper-based submissions are no longer accepted. Ensure your CA files the certificate directly on the e-filing portal to avoid remittance delays.
Additionally, the new system now requires the TRC to be mandatorily uploaded along with Form 146 when DTAA relief is claimed. UDIN generation happens in real-time and is linked directly to the portal's bank integration layer.
| Update | Effective From | Impact |
|---|---|---|
| Form 15CB renamed to Form 146 | AY 2025-26 | All new filings must use Form 146 |
| Form 15CA renamed to Form 145 | AY 2025-26 | All remitter declarations on Form 145 |
| Real-time bank portal validation | April 2026 | Payments blocked if Form 146 not filed |
| TRC mandatory upload for DTAA claims | FY 2026-27 | No DTAA benefit without digital TRC |
| Paper-based submissions discontinued | January 2026 | Only e-filing portal accepted |
Ready to clear your overseas payment? Download Form 146 CA Certificate PDF (Instant Download) right here.
Frequently Asked Questions
No. It is required for payments that are taxable in India. Certain payments, like personal gifts or travel expenses under the Liberalised Remittance Scheme (LRS), may not require this specific CA certificate. However, always check with your tax advisor based on the nature of the payment to avoid penalties.
No. As the name suggests, this is a CA certificate. It must be examined, certified, and filed by a practicing Chartered Accountant using their Digital Signature Certificate (DSC). The remitter cannot file Form 146 independently.
Yes. If you are making taxable payments to a Non-Resident Indian (NRI) — such as rent, professional fees, or dividends — you need to ensure proper TDS deduction and obtain Form 146 before the bank transfers the funds above ₹5,00,000.
Form 146 is generally required when the taxable remittance to a non-resident exceeds ₹5,00,000 (₹5 lakh) in a financial year. Below this limit, only Form 145 (Part A or B) may be needed. However, the threshold applies to the taxable portion of the remittance, not the total amount.
With all documents in place (invoice, TRC, DTAA details), a CA can typically issue Form 146 within 1–3 working days. Urgent cases may be handled faster. Download our PDF format to prepare your documents in advance and speed up the process.
UDIN (Unique Document Identification Number) is generated by the ICAI for every certificate issued by a CA. It acts as a tamper-proof authentication code that allows tax authorities and banks to verify the certificate's authenticity online at udin.icai.org. Without a valid UDIN, Form 146 is not accepted by the portal or the bank.
If you remit taxable payments without Form 146, your bank will block the transfer. Additionally, the Income Tax Department can disallow your business expense under Section 40(a)(i), levy a penalty of up to ₹1,00,000 under Section 271-I, and charge interest on the TDS amount you failed to deduct.
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