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Your company is paying someone who is not resident in India

This is for an Indian company, LLP or startup that is about to send money to a foreign vendor, contractor, licensor or lender. It is the payer's checklist. It is not the page for a foreign company that wants its own tax back.

Last reviewed 26 October 2026Law as of 26 October 2026By Vipul Sharma, Founder · Reviewed by Preetesh Maloo, Chartered Accountant, NRI Tax Partner

Which situation are you in?

  1. 1. Is the sum chargeable to Indian tax?

    If it is not, and Rule 220(3) applies (an individual remittance that needs no prior RBI approval, a remittance by an IFSC unit, or a specified RBI purpose code), Form 145 is not filed. If it is not chargeable and that rule does not apply, file Part D of Form 145. Form 146 is not required. Sale proceeds and most income can still be chargeable when the tax works out at nil.

  2. 2. Chargeable, and the payments to non-residents this tax year do not exceed ₹5 lakh in total?

    Part A of Form 145. You file it. Form 146 is not required. The ₹5 lakh test is the aggregate for the tax year, not this one transfer.

  3. 3. Chargeable, over ₹5 lakh, and you hold an Assessing Officer certificate under section 395(1) or 395(2)?

    Part B of Form 145. Form 146 is not filed. Section 395(1) is the certificate the payee applies for on Form 128 (formerly Form 13). Section 395(2) is the payer's determination on Form 129 (formerly Form 15E). A treaty rate on a TRC and Form 41 alone is not that certificate.

  4. 4. Chargeable, over ₹5 lakh, and you do not hold that certificate?

    Form 146 first, from a chartered accountant, then Part C of Form 145 quoting the Form 146 acknowledgement. One Form 146 is consumed by one Form 145.

Old names and the names on the form now

Payments from 1 April 2026 use the Income-tax Act, 2025 and the Income-tax Rules, 2026. A remittance through 31 March 2026 was still Form 15CA and Form 15CB under Rule 37BB.

What people still sayWhat the 2026 form note says
Section 195Section 393, and for this payment section 393(2) table serial 17
Section 195(2)Section 395(2), applied for on Form 129
Section 197Section 395(1), applied for on Form 128. The new section 197 is long-term capital gains, not this certificate
Form 15CAForm 145, Rule 220
Form 15CBForm 146, Rule 220
Rule 37BBRule 220
Form 15EForm 129, Rule 214
Form 10FForm 41, section 159(8), Rule 75

The Form 145 note ties the form to section 393(2) table serial 17, which is interest not already covered by earlier rows, or any other sum chargeable under the Act that is not salary.

What you do with the answer

Use the part picker and switch it to a company payment. It asks the same Rule 220 questions and names the part. Read the company guide before you file Part C, the section 393 table before you decide the rate, and Form 129 if the whole invoice should not be taxed.

A net-of-tax contract is grossed up under section 393(10), formerly section 195A. Form 146 asks whether the tax was grossed up under that section.

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Questions

No. Parts A to D are the same rule. What changes is the individual exemption in Rule 220(3) for a personal remittance that needs no prior RBI approval. A company does not get that exemption. An IFSC unit and a specified purpose code are the other exceptions the Form 145 note lists.

No. The Form 145 note says Part B is for a certificate under section 395(1) or 395(2) from the Assessing Officer. Form 41 and the tax residency certificate are how a treaty rate is claimed inside the working. They are not that officer's certificate.

Sources

Who does the work

Who prepares the working, who reviews it, and who signs or files it is stated in the written scope for that engagement.

Corrections

  • . First published. Checked against the department note on 26 October 2026.

Law as of 2026-10-26.