When do you need both forms?<\/strong><\/p> In cases where remittances are taxable and exceed \u20b95 lakh, taxpayers may need to file Form 145 along with Form 146. However, if prior approval from the tax officer exists, the CA certificate requirement may be waived.<\/p> Where things can go wrong<\/strong><\/p> Bangar emphasized that incorrect compliance can delay transactions. Common mistakes include:<\/p> Selecting the wrong form or section Banks (Authorised Dealers) will not process remittances without proper documentation, meaning even minor errors can lead to delays.<\/p> MUST READ:\u00a0BT explainer: TDS, TCS shake-up – Decoding new tax rates, codes and compliance rules<\/strong><\/p> Penalty and compliance impact<\/strong><\/p> Non-compliance is not just procedural\u2014it carries financial consequences. Failure to file Form 145 or furnishing incorrect details can attract a penalty of up to \u20b91 lakh under Section 462. Additionally, incorrect TDS can trigger tax demands and interest liabilities.<\/p> Timing matters<\/strong><\/p> The new framework applies based on the date of remittance. Any transfer executed on or after April 1, 2026 must comply with the Form 145\/146 system, regardless of when it was planned.<\/p> Taxpayers should note<\/strong><\/p> The updated system makes foreign remittance compliance more structured and data-driven. While the underlying process remains familiar, execution has become more precise. As Sujit Bangar highlighted, understanding the correct form and requirements is now critical \u2014 because even a small mistake can disrupt your international transfer.<\/p> <\/div>
Missing the CA certificate where required
Incorrect TDS computation<\/p>