What Are NRO and NRE Accounts?

Before understanding Form 145 and Form 146 for NRO to NRE, it helps to understand the two account types involved.

NRO (Non-Resident Ordinary) Account

An NRO account is generally used by NRIs to hold income earned in India, such as:

• Rental income
• Interest income
• Dividends
• Sale proceeds from property or investments
• Other domestic receipts

Both a resident and a non-resident may be joint holders in an NRO account.

NRE (Non-Resident External) Account

An NRE account is typically used to hold income earned outside India or funds transferred into India from abroad.

Only NRIs can generally hold or jointly hold an NRE account.

One key practical difference is that funds in an NRE account are generally freely repatriable, while transfers from an NRO account are subject to compliance requirements and annual limits.

Why Are Form 145 and Form 146 for NRO to NRE Relevant?

When an NRI wishes to:

• Transfer funds from NRO to NRE
• Repatriate Indian income overseas
• Move funds from an NRO account to a foreign bank account

the authorised dealer bank may require tax compliance documentation before processing the transfer.

This is where Form 145 and Form 146 for NRO to NRE become relevant.

These forms help demonstrate that:

• Applicable taxes have been paid or considered
• The remittance complies with Indian tax rules
• Supporting documentation has been reviewed properly

What Is the NRO to NRE Transfer Limit?

Under current FEMA rules, NRIs are generally permitted to transfer or repatriate up to USD 1 million per financial year from their NRO account, subject to documentation and tax compliance requirements.

This limit often applies to:

• NRO to NRE transfers
• Overseas remittance from an NRO account

Meeting compliance requirements, including Form 145 and Form 146 for NRO to NRE, is often an important part of this process.

What Is Form 145 for NRO to NRE Transfer?

Form 145 is the remitter declaration filed before certain foreign remittances.

For NRO-related transfers, it may include:

• Remitter details
• Recipient details
• Source of funds
• Purpose of remittance
• Taxability information
• Tax deducted or exemption details

The purpose of Form 145 is to ensure that the remittance is properly disclosed under the tax framework before the bank processes the transfer.

Additional fields may now include:

• Tax Identification Number (TIN)
• Recipient address
• IFSC and bank details
• Authorised Dealer details
• Remittance purpose sub-code

Understanding the Earlier Form 15CA Structure

Many NRIs and banking teams may still refer to the earlier Form 15CA process during the transition to Form 145 and Form 146 for NRO to NRE.

Historically, Form 15CA was divided into different parts depending on the remittance type and tax position:

• Part A
  Applied where the remittance or aggregate remittances during the tax year did not exceed ₹5 lakh, whether taxable or not.
• Part B
  Applied where a lower withholding tax certificate or specific tax determination order had been obtained from the Income Tax Department.
• Part C
  Applied where the remittance or aggregate remittances exceeded ₹5 lakh during the tax year and required Chartered Accountant certification.
• Part D
  Applied where the remittance was not chargeable to tax under the applicable tax provisions.

While Form 145 and Form 146 for NRO to NRE may follow an updated structure, understanding the earlier classification can still be useful during the transition period, especially when dealing with banks or reviewing legacy documentation.

Supporting Tax Documents

Common supporting tax documents may include:

• Proof of tax payment, where applicable
• Form 41, where relevant
• Tax Residency Certificate (TRC) from the foreign recipient, where treaty benefits are being considered
• Supporting agreements or transaction documents

What Is Form 146 and When Is It Required?

Form 146 is the Chartered Accountant certification that may be required depending on the nature of the remittance and the bank’s internal compliance requirements.

The certifying Chartered Accountant may review:

• Source of funds
• Taxability of income
• Tax already paid
• Applicable exemptions
• DTAA considerations
• Supporting documents

For many cases, Form 145 and Form 146 for NRO to NRE may both be requested.

Form 146 may now include:

• System-generated acknowledgement reference
• UDIN
• Firm Registration Number (FRN)
• Member Registration Number

What Is the Difference Between Form 145 and Form 146?

While the two forms are connected, they serve different purposes.

In many cases, Form 145 may be sufficient, while Form 146 is required only where additional CA certification is needed.

Has the Foreign Remittance Process Changed?

For most practical purposes, the overall remittance process remains broadly similar.

Typical steps may still include:

• Determining whether the remittance is taxable
• Assessing whether Chartered Accountant certification is required
• Preparing supporting documents
• Filing Form 145
• Obtaining Form 146, where applicable
• Submitting documents to the authorised dealer bank
• Completing the foreign remittance

The main change for many taxpayers is adapting to the updated forms form 145 and form 146 and procedural requirements.

Transition Rules: Which Form Applies and When?

One of the most important practical questions is whether the old or new forms should be used.

Broadly:

For tax deducted on or before 31 March 2026

• Existing rules continue to apply
• Form 15CA and Form 15CB may still be relevant

For tax deducted on or after 1 April 2026

• The new law applies
• Form 145 and Form 146 should be used

During the FY 2026-27 transition period, both old and new references may continue to appear in discussions, internal systems, and bank communications.

Careful review before filing can help avoid confusion or delays.

A Unique Feature of NRO to NRE Transfers

Unlike many foreign remittances, in an NRO to NRE transfer:

• The remitter and recipient are often the same person
• The transfer may occur between two accounts held by the same NRI
• The purpose is often repatriation of already-earned Indian income

This can sometimes create confusion when preparing Form 145 and Form 146 for NRO to NRE, especially while entering remitter and remittee details.

Can Form 145 or Form 146 Be Exempt for Certain NRO Transfers?

In some situations, banks may treat certain NRO remittances under purpose code S1301, which may relate to remittance by non-residents towards family maintenance and savings.

Depending on the transaction and bank policy, this may affect whether Form 145 and Form 146 for NRO to NRE are required.

However:

• Bank practices can differ
• Documentation expectations may vary
• Some banks may still request compliance forms

It is advisable to confirm requirements with both your bank and your tax advisor before initiating the transfer.

What Documents Are Commonly Needed?

Commonly requested documents may include:

• PAN card
• Passport copy
• Overseas address proof
• Visa or residency proof
• NRO account statement
• Proof of source of funds
• Tax payment evidence
• Rental agreements, if relevant
• Property sale documents, if relevant
• Bank remittance forms
• Chartered Accountant certification, where applicable

Source of Funds Is Often the Most Important Review Area

For Form 145 and Form 146 for NRO to NRE, banks and Chartered Accountants often focus heavily on the source of funds.

You may need to demonstrate how the funds originated, such as:

• Rental receipts
• Fixed deposit maturity proceeds
• Property sale proceeds
• Inherited funds
• Investment redemption proceeds

Clear source documentation can significantly reduce delays.

FAQ: Form 145 and Form 146 for NRO to NRE

Is Form 145 required for NRO to NRE transfer?

In many cases, yes. Banks often require remittance-related declarations before processing the transfer.

Is Form 146 mandatory for all NRO to NRE transfers?

Not always. The requirement depends on the transaction and the bank’s policy.

What replaces Form 15CA for NRO to NRE transfer?

Form 145 replaces Form 15CA.

What replaces Form 15CB for NRO to NRE transfer?

Form 146 replaces Form 15CB.

Can banks still ask for Form 15CA or Form 15CB?

During the transition period, some institutions may continue using the older terminology informally.

Need Help with Form 145 and Form 146 for NRO to NRE?

NRO to NRE transfers and overseas remittances can be straightforward when the source of funds, tax treatment, and documentation are properly aligned.

A careful review of your remittance purpose, supporting records, and filing requirements can help avoid delays and repeated submissions.

If you need clarity on whether Form 145 and Form 146 for NRO to NRE apply to your transaction, early professional guidance can help make the process smoother.