Form 145 and Form 146 Filing Errors 2026

Form 145 and Form 146 filing can succeed but remain wrong

Form 145 and Form 146 filing can be technically accepted even when the transaction has been misunderstood. For cross-border payments, the greater risk is not a typing mistake. It is a wrong conclusion on taxability, treaty relief, withholding or the part of Form 145 selected.

CBDT’s 2026 guidance places the new forms within a clear statutory sequence: Section 393 addresses withholding on relevant payments to non-residents, Section 395 provides lower or nil deduction routes, Section 397(3)(d) contains remittance-information obligations and Rule 220 governs the form framework.

Error 1: Starting with the amount instead of taxability

The Rs. 5 lakh threshold helps determine the reporting route, but it does not decide whether the payment is taxable. A remittance should first be characterised under Indian law and the applicable DTAA.

Only then should the remitter select Part A, B, C or D of Form 145. A non-taxable payment does not become taxable because it is large, and a payment below Rs. 5 lakh is not exempt from withholding merely because it falls within Part A.

Error 2: Obtaining Form 146 when an AO certificate governs the transaction

Where the taxable remittance exceeds Rs. 5 lakh and a relevant Assessing Officer certificate under Section 395 is available, Part B may apply. CBDT has clarified that a separate Part C and Form 146 route need not be duplicated in that situation.

The remitter should confirm that the certificate covers the recipient, payment, period, rate and amount actually being remitted.

Error 3: Filing Form 145 before Form 146 in a Part C case

Where Part C applies, the Chartered Accountant files Form 146 first. The acknowledgement number is then entered in Form 145 and relevant details are made available for verification.

Last-minute requests fail when the agreement, invoice, TRC, Form 41 or tax computation is incomplete. The remitter should plan the filing before the bank’s cut-off date. The full process is explained through Wealth4India Form 145 and Form 146 filing and the Dwarka foreign remittance filing service.

Error 4: Treating a TRC as the entire DTAA file

A Tax Residency Certificate is important but may not contain every prescribed detail. Form 41, beneficial-ownership information, a no-PE declaration and treaty-specific evidence may also be required.

The tax position should explain why a particular treaty article applies and whether the payment is business income, royalty, fees for technical services, interest, capital gain or another category.

Error 5: Ignoring event-based filing

Forms 145 and 146 are transaction based. A certificate obtained for one remittance should not automatically be reused for a later payment with different value, invoice, period or tax facts.

Each remittance must be tested under Rule 220 and supported by its own record.

Error 6: UDIN mismatch

The Department has introduced real-time UDIN verification for Form 146 through the ICAI interface. The objective is to authenticate the CA certificate and reduce misuse.

The Chartered Accountant should ensure that the UDIN particulars match the certificate and the form. The remitter should preserve the final Form 146 acknowledgement and not rely only on a draft certificate shared by email.

Pre-filing control sheet

Before submission, confirm:

• identity and country of the recipient;

• agreement, invoice and purpose of payment;

• source of funds and bank remittance details;

• domestic charging and source provisions;

• DTAA article and rate;

• TRC, Form 41 and other treaty declarations;

• Permanent Establishment and beneficial-ownership position;

• Section 393 withholding and tax deposit;

• Section 395 order, if any;

• RBI purpose code;

• correct Form 145 part;

• Form 146 acknowledgement and UDIN where Part C applies; and

• consistency with books and supporting documents.

Key takeaway

A strong foreign-remittance file should tell one consistent story from the commercial contract to the bank transfer. Form 145 and Form 146 should be the result of that analysis, not a substitute for it.

For professional documentation support, see the Form 145 and Form 146 CA certificate service and online Form 15CA and Form 15CB filing assistance. For supporting analysis, read TaxParley’s guides to foreign remittance Forms 145 146 and 41 and foreign tax credit Form 67.

Frequently asked questions

Which form is filed first under the Part C route

The Chartered Accountant files Form 146 first. Its acknowledgement details are then used in the remitter’s Form 145 filing.

Can the same Form 146 be reused for another remittance

Not automatically. Each payment must be checked for amount, invoice, period, tax facts and Rule 220 requirements.

Why is UDIN verification important in Form 146

UDIN verification authenticates the CA certificate. The particulars in the UDIN, certificate and filed form should match, and the final acknowledgement should be preserved.