Rule 220Published

Rule 220: Form No. 145 information before paying a non-resident

Rule 220 tells a person paying a non-resident (not being a company) or a foreign company which Part of Form No. 145 to furnish. The Part depends on whether the sum is chargeable under the Act, whether the payments exceed ₹ 500000 in the tax year, and whether an Assessing Officer certificate or an accountant's certificate in Form No. 146 has been obtained. The rule also lists remittances that need no information, how the form reaches the authorised dealer, and the quarterly statements in Form No. 147 and Form No. 148.

Official notified Income-tax Rules, 2026

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On this page

Bare law
Which Part of Form No. 145 — Rule 220(1) and (2)
Remittances needing no information — Rule 220(3)
How Form No. 145 is furnished — Rule 220(4) and (5)
Quarterly statements — Rule 220(6)
Key takeaways
Practical checklist
FAQs
Glossary
Official sources
Related rules

Bare law

Rule 220 - Furnishing of information for payment to a non-resident, not being a company, or to a foreign company
(1) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum chargeable under the Act, shall furnish the following:— (a)information in Part A of Form No. 145, if the amount of payment or the aggregate of such payments, as the case may be, made during the tax year does not exceed ₹ 500000; (b)information in Part B of Form No. 145, if the amount of payment or the aggregate of such payments exceeds ₹ 500000 and where a certificate or order is obtained from the Assessing Officer under section 395(1) or (2); (c)information in Part C of Form No. 145, if the amount of payment or the aggregate of such payments exceeds ₹ 500000 and where a certificate in Form No. 146 from an accountant as defined in section 515(3)(b) is obtained, but where information in Part B of the said Form has been furnished, no information is required to be furnished in Part C of the said Form.
(2) The person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum which is not chargeable under the provisions of the Act, shall furnish the information in Part D of Form No. 145.
(3) No information shall be required to be furnished for any sum that is not chargeable under the Act, irrespective of sub-rule (2), if,— (a) the remittance is made by an individual and it does not require prior approval of Reserve Bank of India as per the provisions of section 5 of the Foreign Exchange Management Act, 1999 (42 of 1999) read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000 made under the said Act; or (b) the remittance is made by a Unit of an International Financial Services Centre referred to in section 147(1)(b); or (c) the remittance is of the nature specified in column C of the specified list below:
Specified list under sub-rule (3)(c)
Sl. No. Purpose code as per Reserve Bank of India Nature of payment
A B C
1 S0001 Indian investment abroad - in equity capital(shares).
2 S0002 Indian investment abroad - in debt securities.
3 S0003 Indian investment abroad - in branches and wholly owned subsidiaries.
4 S0004 Indian investment abroad - in subsidiaries and associates.
5 S0005 Indian investment abroad - in real estate.
6 S0011 Loans extended to non-residents.
7 S0101 Advance payment against imports.
8 S0102 Payment towards import (settlement of invoice).
9 S0103 Imports by diplomatic missions.
10 S0104 Intermediary trade.
11 S0190 Imports below ₹500000. - (For use by Exchange Control Department offices).
12 S0202 Payment for operating expenses of Indian shipping companies operating abroad.
13 S0208 Operating expenses of Indian Airlines companies operating abroad.
14 S0212 Booking of passages abroad - Airlines companies.
15 S0301 Remittance towards business travel.
16 S0302 Travel under basic travel quota (BTQ).
17 S0303 Travel for pilgrimage.
18 S0304 Travel for medical treatment.
19 S0305 Travel for education (including fees, hostel expenses etc.).
20 S0401 Postal services.
21 S0501 Construction of projects abroad by Indian companies including import of goods at project site.
22 S0602 Freight insurance - relating to import and export of goods.
23 S1011 Payments for maintenance of offices abroad.
24 S1201 Maintenance of Indian embassies abroad.
25 S1202 Remittances by foreign embassies in India.
26 S1301 Remittance by non-residents towards family maintenance and savings.
27 S1302 Remittance towards personal gifts and donations.
28 S1303 Remittance towards donations to religious and charitable institutions abroad.
29 S1304 Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.
30 S1305 Contributions or donations by the Government to international institutions.
31 S1306 Remittance towards payment or refund of taxes.
32 S1501 Refunds or rebates or reduction in invoice value on account of exports.
33 S1503 Payments by residents for international bidding.
(4) The information in Form No. 145 shall be furnished,— (a) electronically under digital signature in accordance with the procedures, formats and standards specified by the Director General of Income-tax (Systems) under rule 332 and thereafter the said Form shall be submitted to the authorised dealer electronically or otherwise, prior to remitting the payment; or (b) electronically in accordance with the procedures, formats and standards specified by the Director General of Income-tax (Systems) under rule 332 and thereafter a signed printout of the said Form shall be submitted to the authorised dealer electronically or otherwise, prior to remitting the payment.
(5) An income-tax authority may require the authorised dealer to furnish a copy of Form No. 145 referred to in sub-rule (4)(b) for the purposes of any proceedings under the Act.
(6) A quarterly statement, for each quarter of the financial year shall be furnished in respect of all remittances referred to in sub-rules (1), (2) and (3) by— (a) the authorised dealer in Form No. 147; or (b) a Unit of an International Financial Services Centre referred to in 147(1)(b), responsible for paying to a non-resident (not being a company) or to a foreign company, in Form No. 148, to the Director General of Income-tax (Systems) or the person authorised by him, within fifteen days from the end of the quarter of the tax year to which such statement relates.
(7) For the purposes of this rule,— (a) "authorised dealer" means a person authorised as an authorised dealer under section 10(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) ; (b)"International Financial Services Centre" shall have the same meaning as assigned to it in section 2(q) of the Special Economic Zones Act, 2005 (28 of 2005); and (c)"Unit" shall have the same meaning as assigned to it in section 2(zc) of the Special Economic Zones Act, 2005 (28 of 2005).

Specified list under sub-rule (3)(c)
Sl. No.	Purpose code as per Reserve Bank of India	Nature of payment
A	B	C
1	S0001	Indian investment abroad - in equity capital(shares).
2	S0002	Indian investment abroad - in debt securities.
3	S0003	Indian investment abroad - in branches and wholly owned subsidiaries.
4	S0004	Indian investment abroad - in subsidiaries and associates.
5	S0005	Indian investment abroad - in real estate.
6	S0011	Loans extended to non-residents.
7	S0101	Advance payment against imports.
8	S0102	Payment towards import (settlement of invoice).
9	S0103	Imports by diplomatic missions.
10	S0104	Intermediary trade.
11	S0190	Imports below ₹500000. - (For use by Exchange Control Department offices).
12	S0202	Payment for operating expenses of Indian shipping companies operating abroad.
13	S0208	Operating expenses of Indian Airlines companies operating abroad.
14	S0212	Booking of passages abroad - Airlines companies.
15	S0301	Remittance towards business travel.
16	S0302	Travel under basic travel quota (BTQ).
17	S0303	Travel for pilgrimage.
18	S0304	Travel for medical treatment.
19	S0305	Travel for education (including fees, hostel expenses etc.).
20	S0401	Postal services.
21	S0501	Construction of projects abroad by Indian companies including import of goods at project site.
22	S0602	Freight insurance - relating to import and export of goods.
23	S1011	Payments for maintenance of offices abroad.
24	S1201	Maintenance of Indian embassies abroad.
25	S1202	Remittances by foreign embassies in India.
26	S1301	Remittance by non-residents towards family maintenance and savings.
27	S1302	Remittance towards personal gifts and donations.
28	S1303	Remittance towards donations to religious and charitable institutions abroad.
29	S1304	Remittance towards grants and donations to other Governments and charitable institutions established by the Governments.
30	S1305	Contributions or donations by the Government to international institutions.
31	S1306	Remittance towards payment or refund of taxes.
32	S1501	Refunds or rebates or reduction in invoice value on account of exports.
33	S1503	Payments by residents for international bidding.

Rule breakdown

Which Part of Form No. 145 — Rule 220(1) and (2)

For a sum chargeable under the Act: Part A if the payment, or the aggregate of payments in the tax year, does not exceed ₹ 500000.

Above ₹ 500000: Part B where a certificate or order has been obtained from the Assessing Officer under section 395(1) or (2); Part C where a certificate from an accountant (as defined in section 515(3)(b)) in Form No. 146 has been obtained. If Part B has been furnished, Part C is not required.

For a sum not chargeable under the Act: Part D (Rule 220(2)), unless Rule 220(3) applies.

Remittances needing no information — Rule 220(3)

No information is required for a sum not chargeable under the Act where: (a) the remittance is made by an individual and does not need prior approval of the Reserve Bank of India under section 5 of the Foreign Exchange Management Act, 1999 read with Schedule III to the Foreign Exchange (Current Account Transaction) Rules, 2000; (b) the remittance is made by a Unit of an International Financial Services Centre referred to in section 147(1)(b); or (c) the remittance is of a nature listed in the specified list.

The specified list has 33 entries, identified by Reserve Bank of India purpose code (for example, S0001 Indian investment abroad in equity capital, S0305 travel for education, and S1301 remittance by non-residents towards family maintenance and savings). The full list is reproduced in the bare law below.

Rule 220(3) applies only to sums that are not chargeable under the Act. It does not remove the Part A, B or C requirement for chargeable sums.

How Form No. 145 is furnished — Rule 220(4) and (5)

Form No. 145 is furnished electronically in accordance with the procedures, formats and standards specified by the Director General of Income-tax (Systems) under rule 332. It is then submitted to the authorised dealer, electronically or otherwise, before the payment is remitted.

There are two options: furnish it under digital signature and submit the form (Rule 220(4)(a)), or furnish it electronically and submit a signed printout (Rule 220(4)(b)). Under Rule 220(5), an income-tax authority may ask the authorised dealer for a copy of a Form No. 145 submitted under Rule 220(4)(b).

Quarterly statements — Rule 220(6)

A quarterly statement covering all remittances referred to in Rule 220(1), (2) and (3) is furnished by the authorised dealer in Form No. 147, or by an IFSC Unit paying a non-resident (not being a company) or a foreign company in Form No. 148.

It goes to the Director General of Income-tax (Systems) or the person authorised by him, within fifteen days from the end of the quarter to which it relates.

Rule 220(7) adopts the FEMA meaning of "authorised dealer" and the Special Economic Zones Act, 2005 meanings of "International Financial Services Centre" and "Unit".

Key takeaways

Four Parts

Part A up to ₹ 500000; Part B or Part C above it for chargeable sums; Part D for non-chargeable sums.

Before remittance

Form No. 145 reaches the authorised dealer before the payment is remitted.

Exempt list

Rule 220(3) lists remittances of non-chargeable sums that need no information, including 33 purpose codes.

Practical checklist

Decide first whether the sum is chargeable under the Act.
Total the payments to the same payee in the tax year when you check the ₹ 500000 limit.
Submit Form No. 145 to the authorised dealer before the remittance.

Avoid

Do not use the Rule 220(3) exempt list for a sum that is chargeable under the Act.
Do not furnish Part C when Part B has already been furnished.

FAQs

When is Part C of Form No. 145 used?

For a chargeable sum above ₹ 500000 where an accountant's certificate in Form No. 146 has been obtained. If Part B has already been furnished, Part C is not required (Rule 220(1)(c)).

Is Form No. 145 needed for a remittance for education abroad?

Purpose code S0305 (travel for education, including fees and hostel expenses) is in the specified list. Rule 220(3)(c) removes the requirement only where the sum is not chargeable under the Act.

Who files Form No. 147?

The authorised dealer files the quarterly statement in Form No. 147. An IFSC Unit paying a non-resident or foreign company uses Form No. 148 (Rule 220(6)).

What is the deadline for the quarterly statement?

Within fifteen days from the end of the quarter to which the statement relates (Rule 220(6)).

Glossary

Authorised dealer: A person authorised under section 10(1) of the Foreign Exchange Management Act, 1999 (Rule 220(7)(a)).
Form No. 146: The accountant's certificate that supports Part C of Form No. 145.
Purpose code: The Reserve Bank of India code identifying the nature of a remittance, used in the Rule 220(3)(c) specified list.

Official sources

Official notified Income-tax Rules, 2026 — Notification 22/2026