Tag: NRO account

Form 145 and 146 Replace Form 15CA and 15CB — Complete NRI Guide for AY 2026-27
From 1 April 2026, the Income Tax Act 2025 has replaced the long-standing Form 15CA and Form 15CB with two new forms — Form 145 and Form 146. If you are an NRI or making a remittance abroad from India, you need to understand what has changed, what remains the same, and how compliance works under the new regime.

What Were Form 15CA and Form 15CB?

Under the old Income Tax Act 1961, anyone making a foreign remittance from India was required to file Form 15CA — an online declaration — and obtain Form 15CB, a certificate from a Chartered Accountant, before the bank would process the transfer. These forms ensured that applicable taxes were paid before money left India.

Banks required the CA-certified Form 15CB before accepting Form 15CA for most remittances above ₹5 lakh. This system, while effective, had four separate Parts (I, II, III, IV) making it confusing for NRIs and remitters alike.

What Are Form 145 and Form 146?

The Income Tax Act 2025 introduced a streamlined two-form system effective 1 April 2026:
- Form 145 (erstwhile Form 15CA) — The online declaration filed by the remitter on the Income Tax portal. It declares the nature of the remittance, its taxability, applicable DTAA provisions, and the tax deducted. This is filed by you or your CA on your behalf.
- Form 146 (erstwhile Form 15CB) — The CA certificate issued by a practising Chartered Accountant certifying that the provisions of the Income Tax Act 2025 and relevant DTAA have been complied with. Your bank requires this before processing the remittance.
Key Differences: Old vs New Forms

The core compliance requirement is identical — a remitter must file a declaration (Form 145 / old 15CA) and obtain a CA certificate (Form 146 / old 15CB) for taxable remittances. The key change is in the legal foundation: the forms now operate under Section 402 of the Income Tax Act 2025 instead of Section 195 of the old Act. DTAA provisions, tax treaty benefits, and bank submission procedures remain broadly the same.

One significant improvement: the new Act has cleaner definitions of what remittances require compliance, reducing ambiguity about which Part to file. Many routine NRI transactions that previously required lengthy Part III filings are now handled under simplified declarations.

Which Remittances Require Form 145 and 146?

Form 145 and Form 146 are required for remittances that are chargeable to tax in India under the Income Tax Act 2025. This typically includes:
- Rental income being repatriated by NRIs
- Proceeds from sale of property in India
- Dividend income from Indian companies
- Interest income from NRO accounts above the exempt threshold
- Royalty or fee for technical services paid to non-residents
- Capital gains from sale of Indian assets
Remittances that are not taxable — such as genuine gifts between close relatives, repayment of loans, or amounts already taxed — may not require Form 146, but Form 145 may still be required as a declaration.

What Does a Practising CA Do in This Process?

Your CA plays a critical role in Form 146 certification. The CA must examine the remittance, verify the nature of income, determine taxability under Indian domestic law and the applicable DTAA, compute the tax payable, verify that TDS has been correctly deducted, and then issue Form 146 under their ICAI registration. This is a professional certification carrying legal accountability — it cannot be auto-generated by software.

At NRI Tax CA, every Form 146 certificate is issued by a Fellow Chartered Accountant with 10+ years of experience in NRI taxation. We handle the DTAA analysis, portal filing, and deliver bank-ready documents within 24–48 hours.

How Long Does It Take and What Does It Cost?

At NRI Tax CA, Form 145 filing starts at ₹2,999 per form, Form 146 certificate at ₹2,999, and the most common Form 145 + 146 combo package at ₹4,999. Turnaround is 24–48 hours from the time you share your documents. Everything is handled over email — no office visit required, regardless of which country you are in.

My Bank Still Asks for 15CA/15CB — What Do I Do?

Some bank branches, particularly those outside major metros, may still reference Form 15CA and 15CB in their remittance forms as of April–May 2026. This is simply a documentation lag. Form 145 is the legal successor to Form 15CA and Form 146 is the legal successor to Form 15CB. Present both forms to your bank along with a brief covering note referencing the Income Tax Act 2025 transition. Most banks are accepting these without issue.

If your bank raises a query, contact us and we will provide a standard covering letter that explains the transition for your bank’s compliance team — at no additional charge.

Need to file Form 145 (formerly 15CA) or Form 146 (formerly 15CB)? Use our NRI tax calculator to estimate remittance tax, then submit your request to our CA team at Bilash Paul & Associates.

Start Your Filing Today

Whether you need Form 145 only, Form 146 only, or the complete combo package, NRI Tax CA handles everything end-to-end. Submit your details at nritaxca.com/start.html and receive a fixed quote within 2 hours.

Use our free NRI Tax Calculator to instantly estimate your property TDS, refund amount and ITR obligation → Calculate Now
April 25, 2026
TDS on Rent Paid to NRI Landlord — Complete Guide (Tax Year 2026-27)
If you are a resident Indian paying rent to an NRI landlord, you have a legal obligation to deduct TDS before making each payment. Many tenants are unaware of this requirement — and the consequences of missing it fall entirely on the tenant, not the landlord.

Under the Income Tax Act 2025 effective from 1 April 2026, the concept of Assessment Year is replaced by Tax Year which aligns directly with the financial year. Tax Year 2026-27 begins on 1 April 2026.

Which Section Applies — 195 or 194IB?

This is the most common confusion. Section 194IB applies when a resident tenant pays rent exceeding ₹50,000 per month to a resident landlord.

When the landlord is an NRI, Section 195 applies — regardless of the rent amount. The rules under Section 195 are significantly stricter and the TDS rate is much higher.

TDS Rate on Rent Paid to NRI Landlord

Under Section 195 the TDS rate on rent paid to an NRI landlord is 30% on the gross rent amount plus applicable surcharge and cess.

This compares with just 1% TDS when paying rent to a resident Indian under Section 194IA.

However the NRI landlord can apply for a Lower TDS Certificate under Section 197. If granted, you deduct at the lower rate specified in that certificate. Always ask your NRI landlord whether they hold one before making the first payment.

Step by Step — How to Deduct and Deposit TDS

Step 1 — Obtain TAN As the tenant you must have a Tax Deduction Account Number. Apply online at tin.nsdl.com using Form 49B.

Step 2 — Deduct TDS from each payment Before transferring rent deduct the applicable TDS amount from each payment.

Step 3 — Deposit TDS by 7th of following month Deposit using Challan 281 online through the Income Tax portal. Due date is the 7th of the month following the month of deduction.

Step 4 — File TDS Return in Form 27Q For payments to non-residents including NRI landlords file quarterly TDS returns in Form 27Q — not Form 26Q which is for resident payees. This is a critical distinction most tenants miss.

Step 5 — Issue Form 16A to the landlord After filing the quarterly return download Form 16A from TRACES and provide it to your NRI landlord. They use this when filing their Indian tax return.

Form 26QC — Does It Apply Here?

No. Form 26QC is exclusively for Section 194IB — resident tenant paying rent to resident landlord exceeding ₹50,000 per month.

When the landlord is an NRI, Section 195 and Form 27Q apply. Filing 26QC instead of 27Q is one of the most common compliance errors — it creates problems for both tenant and landlord.

Consequences of Not Deducting TDS
- Interest at 1% per month from date TDS was deductible to date of actual deduction
- Interest at 1.5% per month from date of deduction to date of deposit
- Penalty equal to TDS amount under Section 271C
- Rent payments may be disallowed as expense in your tax return
- In serious cases prosecution under Section 276B
All consequences fall on the tenant — not the NRI landlord.

From the NRI Landlord’s Perspective

TDS deducted appears in Form 26AS against the landlord’s PAN. The landlord claims it as tax credit when filing their Indian tax return and can apply for a refund if TDS exceeds actual tax liability.

The NRI landlord must also file an Indian tax return declaring the rental income regardless of TDS deducted at source.

Common Questions

My NRI landlord says TDS is not required — is this correct? No. TDS deduction is the tenant’s legal obligation. The only exception is a valid NIL deduction certificate from the Income Tax Department held by the landlord.

I already paid rent without deducting TDS — what now? Deduct the shortfall from the next payment and deposit total pending TDS immediately with applicable interest.

PAN of NRI landlord not available — what rate applies? Without valid PAN, TDS must be deducted at the higher of 30% or 20% — effectively making PAN collection mandatory before first payment.

Need Help?

Our team handles TDS compliance for tenants paying rent to NRI landlords and for NRI landlords receiving Indian rental income. We advise on correct rates, Form 27Q filing, Lower TDS Certificate applications, and Indian tax return filing.

Email us at hello@nritaxca.com or visit nritaxca.com.

Use our NRI tax calculator to estimate TDS on rent payable to your NRI landlord. For Lower TDS Certificate applications or compliance, contact our NRI tax team.
March 26, 2026

Tag: NRO account

Form 145 and 146 Replace Form 15CA and 15CB — Complete NRI Guide for AY 2026-27

What Were Form 15CA and Form 15CB?

What Are Form 145 and Form 146?

Key Differences: Old vs New Forms

Which Remittances Require Form 145 and 146?

What Does a Practising CA Do in This Process?

How Long Does It Take and What Does It Cost?

My Bank Still Asks for 15CA/15CB — What Do I Do?

Start Your Filing Today

TDS on Rent Paid to NRI Landlord — Complete Guide (Tax Year 2026-27)