Form 145 (Previously 15CA) for Interest Payments to Non-Residents
Learn how Form 145 (Previously 15CA) applies to interest payments made to non-residents.
Indian companies may make interest payments to overseas lenders, investors or other non-resident recipients.
Because interest payments can have specific tax implications, the payer should review the tax treatment before making the remittance.
What Should Be Checked?
Before making an overseas interest payment, review:
- Loan or financing agreement
- Interest calculation
- Recipient details
- Date and amount of payment
- Taxability in India
- Applicable TDS provisions
- DTAA, where relevant
- TRC and other treaty documents, where applicable
- Form 145 requirement
The applicable tax rate should not be assumed simply because the recipient is located in a particular country.
Example
An Indian company has borrowed money from a foreign lender and needs to pay ₹10 lakh of interest.
Before remitting the interest, the company needs to determine the applicable tax treatment and withholding position.
If the payment is within the scope of Rule 220 and the relevant threshold is exceeded, the company should determine whether Part B or Part C applies based on the certification route.
Why Documentation Matters
Interest payments are generally supported by formal agreements, which makes it easier to establish the commercial nature of the payment.
The agreement should be checked alongside the payment details and tax documentation.
How 145146.com Can Help
Companies making recurring interest payments to overseas lenders may have multiple transactions to manage.
145146.com can support bulk Form 145 and Form 146 preparation and uploading, along with tax assistance.
This can reduce repetitive data entry and give the finance team a structured process for managing recurring foreign remittances.
Final Takeaway
For foreign interest payments, establish the taxability and withholding position first, then determine the appropriate Form 145 (Previously 15CA) process.