Draft Income Tax Rule 220 – Furnishing of information for payment to a non-resident, not being a company, or to a foreign company
Rule 220 of the Draft Income-tax Rules, 2026 prescribes the procedure for furnishing information in respect of payments made to a non-resident (not being a company) or to a foreign company. Where the payment is chargeable to tax, the payer must furnish details in Form No. 145—Part A if aggregate payments during the tax year do not exceed ₹5 lakh; Part B if payments exceed ₹5 lakh and a certificate under section 395(1) or 395(2) is obtained; and Part C if payments exceed ₹5 lakh and a certificate in Form No. 146 from an accountant is obtained (unless Part B has already been furnished). For sums not chargeable to tax, Part D of Form 145 must be filed, subject to specific exemptions. No information is required where remittances are made by individuals not requiring prior RBI approval under FEMA provisions, by specified IFSC Units, or for listed purpose codes such as overseas investments, loans, imports, travel, education, freight insurance, diplomatic expenses, donations, tax refunds, and other specified transactions. Form 145 must be furnished electronically in prescribed formats prior to remittance and submitted to the authorised dealer. Authorised dealers must file quarterly statements in Form 147, while IFSC Units must file Form 148 within fifteen days of quarter-end. These provisions aim to standardize reporting of foreign remittances and enhance regulatory oversight.
Extract of Rule No. 120 of Draft Income-tax Rules, 2026
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, namely :—
(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 ₹ 5,00,000;
(b) information in Part B of Form No. 145, if the amount of payment or the aggregate of such payments exceeds ₹ 5,00,000 and where a certificate is obtained from the Assessing Officer under section 395(1) or under section 395(2);
(c) information in Part C of Form No. 145, if amount of payment or the aggregate of such payments exceeds ₹ 5,00,000 and where a certificate in Form No. 146 from an accountant as defined in section 515(3)(b) is obtained, however, where information in part B has been furnished, no information is required to be furnished in Part C.
(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; or
(b) the remittance is made by a Unit of an International Financial Services Centre referred to in sub-section 147(1)(b); or
(c) the remittance is of the nature specified in column (3) of the specified list below:
| Sl. No. |
Purpose code as per RBI | Nature of payment |
| (1) | (2) | (3) |
| 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 ₹5,00,00. – (For use by ECD 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)(ii) 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 sub-rule (3) by,—
(a) the authorised dealer in Form No. 147;
(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.
(8) For 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);
(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).
