Form 145 (Previously 15CA) Part D Explained
Learn when Form 145 (Previously 15CA) Part D applies to non-taxable foreign remittances, what documents to maintain, and why Form 146 (Previously 15CB) is not required for Part D filings.
Not every foreign remittance is taxable in India.
Where a payment is not chargeable to tax under the Act, Rule 220 provides for furnishing information in Part D of Form 145, subject to the specific provisions of the rule.
When Is Part D Used?
Part D applies where the remittance is not chargeable under the provisions of the Act, other than payments covered by the specific exception referred to in Rule 220.
This is different from Part A, B and C, which deal with taxable remittances.
Example
Suppose an Indian business is making a foreign payment and, after examining the nature of the payment and applicable tax provisions, determines that the amount is not chargeable to tax in India.
If the transaction falls within Rule 220's scope, the taxpayer may need to provide the relevant information through Part D.
Does “Not Taxable” Mean “No Documentation”?
No.
This is an important practical point.
Even where the payment is not chargeable to tax, the taxpayer should maintain documents supporting the position.
Depending on the transaction, these could include:
- Agreement
- Invoice
- Nature of payment
- Supporting correspondence
- Tax analysis
- Recipient details
- Bank/remittance details
The documents help establish why the payment was considered not chargeable to tax.
Is Form 146 (Previously 15CB) Required for Part D?
No.
Form 146 is associated with the Part C route, where a qualifying taxable remittance above ₹5 lakh is supported by an accountant's certificate.
Part D deals with a different situation: the remittance is not chargeable under the Act.