Posted on 21st Aug 2026
India's Income Tax Department is taking a closer look at certain outward foreign remittances. Here's
what NRIs should know about the recent verification exercise, the transition from Forms 15CA and 15CB,
and the importance of proper documentation.
For NRIs managing property, investments, business interests or family-related responsibilities in
India, cross-border payments can be a regular part of financial planning.
Recent developments, however, highlight an important point: foreign remittances should have a clear
purpose, appropriate documentation and the correct tax compliance.
In August 2026, the Income Tax Department announced a nationwide verification exercise involving
approximately 394 entities and 36 professionals in connection with suspicious outward foreign
remittances. The exercise followed data analysis and ground intelligence that identified transactions
requiring further verification.
The scrutiny also includes professionals who issued Form 15CB certificates in relation to certain
transactions.
For NRIs, this does not mean legitimate foreign remittances are prohibited. Instead, it is a reminder
to ensure that cross-border transactions are properly documented and handled in accordance with
applicable tax rules.
Why Are Foreign Remittances Being Scrutinised?
The verification exercise is focused on transactions and entities that may raise questions about the
relationship between the amount remitted and the sender's reported financial or business activity.
Reported areas of concern include:
- Large remittances that appear disproportionate to reported business activity
- Entities reporting very low or no income
- Potentially non-operational entities
- Transactions requiring further verification of their underlying purpose
- Inadequate or inconsistent supporting documentation
- Professionals involved in certifying transactions that may require additional
scrutiny
The broader takeaway is simple: the documentation supporting a foreign
remittance should clearly explain why the payment is being made and how it has been treated for tax
purposes.
What Is Form 146?
If you have previously dealt with Form 15CB, there is an important 2026 update.
Under the Income-tax Act, 2025, Form 146 is the new equivalent of Form 15CB. It is an accountant's
certificate for certain taxable payments to a non-resident or foreign company.
A Chartered Accountant examines the relevant transaction and certifies details such as its taxability,
applicable tax provisions, treaty considerations and tax-deduction requirements.
Form 146 is generally relevant where a taxable payment or aggregate of such payments exceeds ₹5 lakh
during the tax year, subject to the applicable conditions under the new rules. It should therefore not
be assumed that every foreign remittance above ₹5 lakh automatically requires Form 146. The nature and
taxability of the payment matter.
Form 145 Replaces Form 15CA
Form 145 replaces the earlier Form 15CA for applicable remittances under the new framework.
It is used to furnish information about payments to a non-resident or foreign company and is generally
submitted before the remittance is made. Depending on the nature and taxability of the payment, the
form may require information from the taxpayer, an Assessing Officer certificate or a Chartered
Accountant's Form 146.
| Earlier framework |
Current framework for applicable remittances from April 1, 2026 |
| Form 15CA |
Form 145 |
| Form 15CB |
Form 146 |
For remittances made on or after April 1, 2026, Forms 145 and 146 under the Income-tax Act, 2025 and
Income-tax Rules, 2026 apply. Forms 15CA and 15CB submitted for remittances made before April 1, 2026
can continue to remain valid subject to the applicable transition conditions.
In simple terms
If you are looking at an old article, bank checklist or professional document that refers to
15CA/15CB, don't assume it reflects the current 2026 process.
For current applicable remittances:
15CA → 145
15CB → 146
What Does This Mean for NRIs?
NRIs may need to coordinate payments connected with:
- Property purchases, sales, rent or maintenance
- Investments and related transactions
- Business expenses or professional services
- Education and healthcare expenses
- Loans, gifts or other transfers
- Payments to overseas vendors or service providers
The tax treatment can differ significantly depending on the type of transaction. Before making a
significant cross-border payment, it is worth asking four basic questions.
1. What is the purpose of the payment?
The transaction should have a clear and genuine purpose. The supporting documents should make it
possible to understand whether the payment relates to property, services, investments, business
expenses or another legitimate activity.
2. Is the payment taxable in India?
Not every foreign payment receives the same tax treatment. The answer may depend on the nature of the
payment, the parties involved, applicable tax provisions and, where relevant, an applicable tax
treaty.
3. Is tax required to be deducted?
Certain payments to non-residents may involve tax-deduction obligations. A Chartered Accountant or
qualified tax professional should determine the applicable treatment for the specific transaction.
4. Are the documents complete and consistent?
The documentation should tell a clear and consistent story. Depending on the transaction, this could
include:
- Agreements or invoices
- Sale deeds or property records
- Details of the sender and recipient
- Source-of-funds records
- Bank details
- Tax calculations and TDS records
- Form 145 and Form 146, where applicable
- Bank payment confirmations and remittance records
Should NRIs Stop Sending Money Abroad?
No.
The verification exercise does not mean that legitimate foreign remittances are prohibited. The
concern is with transactions that may require further verification because their value, purpose,
documentation or financial context appears inconsistent.
For legitimate transactions, the practical approach is:
Genuine + Properly documented + Correctly
reported + Tax compliant
The exact requirements depend on the transaction, so NRIs should obtain professional tax advice where
necessary.
A
Practical Checklist for NRIs
Before arranging a significant cross-border payment, keep the following organised:
- Purpose and description of the remittance
- Details of the sender and recipient
- Agreement, invoice, sale document or other supporting record
- Relevant source-of-funds information
- Applicable tax treatment
- TDS requirements, where applicable
- Relevant tax forms
- Chartered Accountant certification, if required
- Bank and payment records
- Copies of submitted forms and acknowledgements
Good practice: Keep a digital record
If you regularly manage financial or property-related matters in India from overseas, consider
maintaining a secure digital folder containing:
- Final agreements and invoices
- Filed tax forms and acknowledgements
- Bank advice and payment confirmations
- Relevant correspondence with your bank or CA
- Property or investment documents
- Professional advice received for the transaction
Having these records organised can make future follow-ups much easier, particularly when family
members or authorised representatives need to coordinate matters on your behalf.
Why This Matters More When You're Living Abroad
Managing a cross-border transaction from outside India can involve several people, family members,
banks, Chartered Accountants, property professionals and other service providers.
When documents are scattered or follow-ups are delayed, even a straightforward transaction can become
difficult to manage. This is where having reliable local coordination can make a difference.
How NRI Service Desk Can Help
Managing responsibilities in India from overseas can be challenging when you cannot be physically
present to handle every follow-up.
NRI Service Desk helps NRIs coordinate services and administrative requirements in India, including:
- Document collection and organisation
- Follow-ups with relevant service providers
- Communication and coordination with family members
- Property-related administrative support
- Tracking pending requirements and follow-ups
For tax-sensitive or regulated matters, NRI Service Desk does not replace a Chartered Accountant, tax
advisor or legal professional. Instead, NSD can help coordinate the people, documents and follow-ups
needed in India, so you can manage your responsibilities more conveniently from overseas.
The Bottom Line
The Income Tax Department's 2026 verification exercise highlights the increasing importance of
transparency and proper documentation in foreign remittances.
For NRIs, the takeaway isn't to avoid legitimate cross-border payments. It is to make sure that each
transaction has:
- A clear purpose.
- The right documentation.
- The appropriate tax treatment.
- And the required compliance.
And if you are still seeing references to Forms 15CA and 15CB, remember that the framework has changed
for applicable remittances from April 1, 2026:
- Form 145 replaces Form 15CA.
- Form 146 replaces Form 15CB.
When you're managing responsibilities in India from overseas, you don't have to handle every local
follow-up yourself. NRI Service Desk can help you stay connected with the people, documents and
services you need in India, even when you're miles away.
Disclaimer: This article is intended for general informational purposes only and does not constitute
tax, legal or financial advice. Foreign-remittance and tax requirements can vary depending on the
nature of the transaction, the parties involved and the applicable law. Please consult a qualified
Chartered Accountant, tax advisor or legal professional for advice specific to your circumstances.
