When Is Form 145 NOT Required?
Every time someone sends money abroad, the first question that comes up is: "Do I need to file Form 145?" Most people assume the answer is always yes. But that is not entirely correct. There are clearly defined situations where this form is simply not needed either because of who is making the remittance, what the purpose is or whether the payment is taxable at all.
There are two broad situations where you do not need to file Form 145 at all.
Situation 1: Remittances by Individuals Under the Liberalised Remittance Scheme (LRS)
When a resident individual makes a remittance that does not require prior approval of the Reserve Bank of India (RBI) under Section 5 of the Foreign Exchange Management Act, 1999 (FEMA), read with the relevant schedule, Form 145 is not required.
In simple terms, personal foreign remittances covered under the Liberalised Remittance Scheme for purposes like overseas education, foreign travel, maintenance of close relatives abroad, or medical treatment that fall within the annual LRS limit of USD 2,50,000 are exempt from Form 145 requirements.
Example: Mr. Ramesh a salaried individual based in Jaipur transfers USD 80,000 to his daughter who is studying at a university in Canada. Since this remittance does not require RBI approval (being within the LRS limit of USD 2,50,000 and falling under current account transactions) Mr. Ramesh is not required to file Form 145.
Example: Mrs. Sunita sends USD 1,50,000 for her husband's medical treatment abroad. Again, no RBI approval is required, so no Form 145 is needed.
This exemption recognises that individual personal remittances within permissible limits should not create unnecessary compliance burden.
Situation 2: Payments Covered Under the Specified List in Rule 220(3)
Rule 220(3) of the Income Tax Rules, 2026 (which corresponds to the older Rule 37BB of the Income Tax Rules, 1962) contains a specific list of 33 categories of payments for which neither Form 145 nor Form 146 is required, regardless of the amount being remitted. These are payments that have been specifically identified as not needing the full foreign remittance reporting machinery.
The full list of all 33 categories is covered in another blog.