Rule 220 of the Income-tax Rules, 2026 prescribes information in Form 145 for specified payments "to a non-resident, not being a company, or to a foreign company". For chargeable sums, the rule sets different parts by the amount or aggregate paid during the tax year and the certificate obtained; it also addresses information for non-chargeable sums and certain listed exemptions. This article covers that information rule only. It does not determine chargeability, withholding tax, treaty relief or the separate obligations that may apply to a payment.
Check the scope before using the rule
Rule 220 addresses a person responsible for paying a non-resident, not being a company, or a foreign company. The rule distinguishes sums chargeable under the Act from sums not chargeable. This page does not decide whether a particular payment is chargeable, how it is characterised, or whether tax must be withheld; those require a separate review of the facts and applicable law.
Collect the inputs per payment
For a review under rule 220 of the Income-tax Rules, 2026, record the facts needed to identify the payer, payee, amount or aggregate during the tax year, chargeability position, and any certificate or order obtained. This is an internal checklist, not a statutory form.
Rule 220(1)–(3) of the Income-tax Rules, 2026 sets these information routes and listed non-chargeable exemptions. Whether any sum is chargeable must be determined separately under the Act and facts.
The Rule 220 information routes
For a chargeable sum, Rule 220(1)(a) specifies Part A of Form 145 where the payment or aggregate during the tax year does not exceed ₹5,00,000. Rule 220(1)(b) specifies Part B where it exceeds ₹5,00,000 and an Assessing Officer certificate or order under section 395(1) or (2) is obtained. Section 86 of the Finance Act, 2026 later inserted section 395(6), under which the application "may also be filed before the prescribed income-tax authority", and amended section 395(1)(c) to refer to a certificate "issued under clause (b) or sub-section (6)". Rule 220 as notified refers to the section 395(1) or (2) certificate; check whether rule 220 has been amended before treating a section 395(6) certificate as a Part B case. Rule 220(1)(c) specifies Part C where it exceeds ₹5,00,000 and an accountant’s certificate in Form 146 is obtained; where Part B information has been furnished, Part C information is not required. For a sum not chargeable, Rule 220(2) specifies Part D, subject to the listed exemptions in Rule 220(3). These are information-furnishing routes; they do not themselves decide the tax treatment of a payment.
Do it in order
- Confirm rule 220 scope under the Income-tax Rules, 2026: identify whether the payee is "a non-resident, not being a company, or … a foreign company" and whether the sum is chargeable under the Act.
- Calculate the tax-year amount or aggregate relevant to rule 220(1) of the Income-tax Rules, 2026.
- For a chargeable sum, determine whether Part A, Part B or Part C applies using rule 220(1) of the Income-tax Rules, 2026 and its certificate conditions.
- For a non-chargeable sum, consider Part D under rule 220(2) of the Income-tax Rules, 2026, then check whether a specific exemption in rule 220(3) applies.
- Submit Form 145 information before remittance using one of the methods in rule 220(4) of the Income-tax Rules, 2026, and verify any separate obligations under their applicable provisions.
Worked examples: applying the amount bands
These examples assume only the stated payee status, chargeability and certificates. They do not determine the tax treatment of any real payment.
Example A: a non-resident (not being a company) or a foreign company receives a chargeable sum, and the amount or aggregate during the tax year does not exceed ₹5,00,000. Rule 220(1)(a) of the Income-tax Rules, 2026 specifies Part A of Form 145.
Example B: the amount or aggregate exceeds ₹5,00,000 and an Assessing Officer certificate or order under section 395(1) or (2) of the Income-tax Act, 2025 has been obtained. Rule 220(1)(b) of the Income-tax Rules, 2026 specifies Part B. If instead an accountant’s certificate in Form 146 is obtained, rule 220(1)(c) specifies Part C, subject to the rule’s statement about Part B already furnished.
Example C: the sum is not chargeable. Rule 220(2) of the Income-tax Rules, 2026 specifies Part D, unless one of the exemptions in rule 220(3) applies.
The table summarises the information routes in Rule 220(1)–(3) of the Income-tax Rules, 2026; it does not decide chargeability, withholding, treaty relief or certificate eligibility on particular facts.
Separate obligations
This article is limited to the information requirement in Rule 220 of the Income-tax Rules, 2026. It does not state the applicable withholding rate or determine whether a payment is chargeable, whether treaty relief applies, or what penalty or interest may arise. Check those issues under their applicable official provisions and facts.
FAQ
Every foreign payment needs both forms?
No. Rule 220(1) of the Income-tax Rules, 2026 sets the information route for specified chargeable payments, while sub-rules (2) and (3) address non-chargeable sums and listed exemptions. Separate obligations are outside this article.
Vendor has no tax presence in India. Still file?
Rule 220(2) and (3) address Form 145 information for non-chargeable sums and specified exemptions. This article does not determine chargeability or withholding obligations for a particular payment.
Does rule 220 of the Income-tax Rules, 2026 decide treaty relief or withholding?
No. Rule 220 addresses information in Form 145. Treaty relief, chargeability and withholding are separate questions and are outside this article.
When must Form 145 information be submitted?
Rule 220(4) of the Income-tax Rules, 2026 provides for electronic furnishing and submission to the authorised dealer electronically or otherwise before remitting payment, using either of the two methods described in that sub-rule.
Does Rule 220 cover every payment to a foreign person?
No. Its stated scope is a payment to a non-resident, not being a company, or to a foreign company. Rule 220(3) also lists cases where information is not required for certain non-chargeable sums.
Sources
- Income-tax Rules, 2026, rule 220(1)–(4) (Forms 145 and 146 information routes and submission prior to remittance).
- Income-tax Rules, 2026, rule 220(3) (specified exemptions for certain non-chargeable sums).
- Income-tax Act, 2025, section 395(1) and (2), referred to by rule 220(1)(b); its application to a particular payment is not analysed here.
What to send for a review
For a Rule 220 information-route review, gather payee status, the amount or aggregate for the tax year, the chargeability position, and any Assessing Officer order or Form 146 accountant certificate. This checklist does not determine the underlying tax treatment.
Next steps on annual compliance
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