Business payments, professional fees and overseas investments may follow different requirements. The transaction must also be classified as either a current-account (e.g., expenses, fees) or a capital-account (e.g., property, asset purchase) transaction. The precise purpose determines the Reserve Bank of India (RBI) purpose code and the exact paperwork the bank will request.

What is Form A2 and the LRS Declaration?

Form A2 is an RBI/FEMA-mandated declaration (Section 10(5), FEMA 1999, read with the RBI Master Direction on the Liberalised Remittance Scheme). It is compulsory for outward remittance of foreign exchange through an AD bank (the earlier USD 25,000 exemption from a full A2 was withdrawn). Its exact template is bank-specific, not a single downloadable RBI form. It generally records:

• The remitter's details
• The overseas beneficiary's details
• The amount and currency
• The source of funds
• The purpose of the payment
• The relevant RBI purpose code

Form A2 and the LRS declaration are technically connected parts of the process, but banks commonly combine them with their own outward-remittance request. As a result, a customer may complete one consolidated form online or at a branch. PAN is mandatory for remittances under LRS.

What is Form 145: The Form That Replaced Form 15CA?

From 1 April 2026, Form 145 replaced Form 15CA. Form 145 provides the Income Tax Department with information about specified payments made to non-residents or foreign companies.

Form 145 has four parts:

• Part A: For a payment chargeable to tax when the amount or aggregate payments do not exceed ₹5 lakh during the tax year
• Part B: For a taxable payment exceeding ₹5 lakh when a certificate or order has been obtained from the Assessing Officer
• Part C: For a taxable payment exceeding ₹5 lakh when an accountant's certificate in Form 146 has been obtained
• Part D: For a payment that is not chargeable to tax in India

Individual LRS remittances that do not require prior RBI approval are exempt from filing Form 145/146 under Rule 37BB, sub-rule (3). Please note that this is a procedural filing exemption, not a determination that the sum is non-taxable. Separately, Rule 37BB lists 33 specified categories of payment (including certain imports and personal remittances) that need no Form 145/146 regardless of amount.

Form 146: When Is a CA Certificate Required?

Form 146 replaced Form 15CB from 1 April 2026. It is an accountant's certificate issued by a Chartered Accountant. It is generally required when the payment is chargeable to tax in India, the payment or aggregate payments exceed ₹5 lakh during the tax year, and Part C of Form 145 is being filed.

The Chartered Accountant reviews the underlying invoices, agreements, and tax treaty provisions to certify the nature of the payment and the correct Tax Deducted at Source (TDS) rate. The CA must upload Form 146 to the tax portal first. The remitter then uses the CA's Acknowledgement Number to unlock and auto-fill Part C of Form 145.

What are the Documents Required for DTAA Benefits?

A DTAA (Double Taxation Avoidance Agreement) may provide a lower tax rate or exemption for certain payments. To claim this benefit, the bank or Chartered Accountant may require:

• A Tax Residency Certificate from the overseas recipient
• Form 41, which replaced Form 10F, must be submitted electronically on the Indian e-filing portal to claim treaty benefits.
• The recipient's PAN or foreign Tax Identification Number
• A no-permanent-establishment declaration, where relevant
• An invoice, contract or agreement supporting the payment

The documents required depend on the nature of the income and the relevant tax treaty.

What are the Purpose-Specific Supporting Documents for Foreign Remittances?

The bank may ask for evidence showing why the money is being sent. Common examples of purpose-specific supporting documents for remittances include:

• Education: Admission letter, university invoice or fee demand letter
• Medical treatment: Hospital estimate, appointment letter or medical documents
• Gift: Gift declaration, recipient details and relationship proof
• Family maintenance: Relationship proof and beneficiary details
• Travel: Passport, visa, tickets or booking documents
• Business services: Invoice, contract or service agreement
• Overseas investment: Brokerage statement, investment application or foreign-entity documents
• Property payment: Sale agreement, ownership records or payment schedule

Document requirements can vary between banks, even when the purpose of the remittance is the same.

Other Bank and Compliance Requirements

The bank may also request PAN, KYC documents, bank statements, source-of-funds proof and the beneficiary's bank and SWIFT details. A FEMA declaration may form part of the application. TDS may apply when the overseas payment is taxable in India. Tax Collected at Source may also apply to certain LRS remittances. TCS is collected by the bank where required; it is not a separate remittance form filed by the customer.

Final Thoughts

Form A2 is the main application for many outward remittances, while the LRS declaration may form part of the same bank application. Forms 145 and 146 apply only in specified tax situations. The supporting documents depend on the purpose of the payment. Checking the requirements with the authorised dealer bank before initiating the transfer can reduce delays and prevent the application from being returned for missing information.

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