Sending Money Abroad? Know About New Income Tax Forms 145 & 146 First

Balasahana Suresh
If you are planning to send money outside india, you should be aware of new income tax compliance forms (commonly referred to as Form 145 and 146 in recent discussions) linked to the Liberalised Remittance Scheme (LRS) under FEMA and income tax rules. These forms are part of stricter monitoring of foreign remittances.

1. What Are These Forms (145 & 146)?

These forms are essentially declarations required for foreign remittances, where individuals must provide details such as:

  • PAN and identity details
  • Purpose of remittance (education, travel, investment, etc.)
  • Amount being transferred abroad
  • Source of funds
  • Bank and transaction details
They help the government track foreign outflows and tax compliance.

2. Why Are These Forms Important?

The government uses these declarations to:

  • Monitor money sent outside india under LRS
  • Prevent tax evasion and misuse of foreign transfers
  • Ensure correct reporting under Income Tax Act and FEMA rules
  • Improve transparency in overseas investments and spending
3. When Do You Need to Fill Them?

You may need to provide such declarations when:

  • Sending money abroad for education or travel
  • Investing in foreign stocks or property
  • Transferring funds to relatives outside India
  • Using international remittance services under LRS
Banks usually collect these details before processing the transaction.

4. How Much Money Can You Send Abroad?

Under the Liberalised Remittance Scheme (LRS):

  • Up to USD 250,000 per financial year per person is allowed
  • Applies to eligible current and capital account transactions
5. Important Compliance Rules

✔ PAN is mandatory for all foreign remittances
✔ tcs (Tax Collected at Source) may apply above certain limits
✔ Proper purpose declaration is required
✔ Banks verify documents before approval

6. What Happens If You Don’t Comply?

  • Transaction may be delayed or rejected
  • You may receive tax notices
  • Possible penalties for incorrect disclosure
7. Key Takeaway

These new reporting forms are part of India’s effort to make foreign remittances more transparent and tax-compliant. They do not stop you from sending money abroad, but ensure that every transaction is properly documented.

Conclusion

If you are planning to send money outside india, it is important to understand and correctly fill the required tax declarations (like Forms 145 and 146 as referenced in recent updates). Proper compliance ensures smooth transactions and avoids future tax complications.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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