Form 145 Part A, B, C or D: which one should you file?

Last updated 24 October 2026

Which part of Form 145 to fill: the decision table

Find your row. The first column decides everything, so if you're unsure whether the payment is taxable, settle that first (step 1 below).

Step 1: is the payment taxable in India?

This is the step most people skip, and it decides which half of the table you're in. Whether a payment to a non-resident is taxable in India depends on what it's for and on the tax treaty (DTAA) with the payee's country. Two payments of the same amount can land in different parts of Form 145.

A common mistake is to pick Part A because the amount is small. Part A is for taxable remittances within the ₹5 lakh limit. A small payment that isn't taxable belongs in Part D (or needs no Form 145 at all). If you can't tell whether your payment is taxable, that's the question a CA answers first. It's also the first thing we check as part of our Form 15CA and 15CB filing service.

Step 2 (not taxable): Part D, or no Form 145 at all

Rule 220 of the Income Tax Rules, 2026 exempts three kinds of remittance from Form 145 and Form 146, but only where the payment isn't taxable in India:

• payments by an individual under the Liberalised Remittance Scheme (LRS)
• remittances by a unit in an International Financial Services Centre (IFSC)
• payments whose RBI purpose code is on the specified exempt list

Your bank assigns the purpose code, so confirm it with them. If your payment isn't taxable but doesn't fit any of these, file Form 145 Part D. The rules don't require a CA certificate for Part D, though some banks still ask for one. More on the exemptions: Do I need Form 15CA and 15CB?

Step 3 (taxable): Part A, B or C

For a taxable payment, the next test is the ₹5 lakh limit. It applies to the total of such payments made during the tax year, not to one transfer.

• Part A: the total stays at ₹5,00,000 or less. No CA certificate is needed, but you still deduct the right TDS before you pay.
• Part C: the total goes above ₹5,00,000. A practising CA first issues a Form 146 certificate covering the TDS rate, the treaty position and the nature of the payment. You then file Part C, quoting the Form 146 acknowledgement.
• Part B: the total goes above ₹5,00,000, but you've obtained a certificate or order from the Assessing Officer under section 395 (for example, for a lower or nil TDS rate). You file Part B on the strength of that certificate, without Form 146.

Most business payments abroad above ₹5 lakh, such as software, consulting, marketing services or royalties, end up in Part C. For the portal steps, see how to file Form 145 online.

What your bank will ask for

Banks check your Form 145 before they release a foreign payment. Have these ready:

• the Form 145 acknowledgement for the part you filed
• the Form 146 certificate, if you filed Part C
• the Assessing Officer's certificate or order, if you filed Part B
• the invoice or agreement behind the payment
• the payee's Tax Residency Certificate, if a lower treaty rate has been applied

Each bank has its own checklist, and some ask for more than the rules do. A quick call to your bank's forex desk before you file saves a second trip.

Common mistakes when choosing a part

• Going by amount before taxability. A small non-taxable payment filed in Part A is the wrong part.
• Counting one payment, not the year. A ₹2 lakh transfer can need Part C if earlier taxable payments this year have already passed ₹5 lakh.
• Filing Part C too early. Part C quotes the Form 146 acknowledgement, so the CA's certificate has to be uploaded first.
• Choosing Part B without the order in hand. Part B relies on the Assessing Officer's certificate or order. Without it, a taxable payment above ₹5 lakh goes in Part C.

Filed the wrong part already? See how to correct an error in Form 15CA or 15CB.

This article is for general information only. For your specific remittance, consult a practicing CA.