Three Dates Every NRI Should Have in the Diary: Form 145 Is Already Here, the TAN Goes on 1 October, and the H-1B Fee Runs to 2027
A new Income-tax Act came into force on 1 April 2026 and quietly renumbered the paperwork every NRI remittance depends on — Form 15CA is now Form 145, Form 15CB is Form 146, and section 195 is section 393(2). From 1 October 2026 a resident individual buying property from an NRI no longer needs a TAN. And the $100,000 H-1B payment has been extended to September 2027 while a court decides whether it was lawful at all. What each one changes, what it does not, and the rates that stayed exactly where they were.
2026 has been a year of renumbering rather than re-rating for non-residents. The tax you owe on Indian income is broadly what it was. What moved is the plumbing: a new Act, new form numbers on the remittance you make every quarter, a registration requirement about to disappear for property buyers, and — outside the tax code entirely — a visa cost that shapes whether a whole cohort of Indian professionals stays abroad at all. This piece takes the three dates in order and says plainly what each does.
Position as at 23 September 2026. The Income-tax Act, 2025 took effect on 1 April 2026; form and section references below follow it, with the old numbers given alongside because every bank form and every older article still uses them. Classification and treaty questions turn on individual facts — check your own position before you remit, and take advice on anything large.
1 April 2026 — Form 145 and Form 146 replace Forms 15CA and 15CB; section 195 becomes section 393(2) · 1 October 2026 — a resident individual or HUF buying immovable property from a non-resident no longer needs a TAN · 21 September 2027 — the date the extended $100,000 H-1B payment currently runs to, subject to the appeal.
1. Already in force: your remittance paperwork has new numbers
If you have moved money out of an NRO account since April, you have met this. The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, and with it:
| What you knew | What it is now | From |
|---|---|---|
| Form 15CA — the remitter's declaration | Form 145 | Remittances on or after 1 April 2026 |
| Form 15CB — the Chartered Accountant's certificate | Form 146 | Same |
| Section 195 — TDS on payments to non-residents | Section 393(2) | 1 April 2026 |
| Rules under the 1962 Rules | Rule 220 of the Income-tax Rules, 2026 | 1 April 2026 |
The structure of Form 145 follows the old one closely. It is filed before the money leaves, once per remittance — there is no annual consolidated option — and which part you complete depends on size and taxability:
- Part A — remittances not exceeding ₹5,00,000 in the tax year.
- Part B — above ₹5,00,000, where an Assessing Officer's certificate has been obtained.
- Part C — above ₹5,00,000, supported by Form 146 from a Chartered Accountant. The CA must file Form 146 before you can file Part C.
- Part D — remittances not taxable under the Act, other than those listed in Rule 220(3).
The penalty for not filing when required, or filing wrong information, is up to ₹1 lakh under section 462 of the new Act. In practice your bank will not process the transfer without the acknowledgement, so the cost of getting this wrong is usually delay rather than penalty — but the delay lands at exactly the moment you need the money to arrive.
What did not change: the ceiling of USD 1 million per financial year on repatriation out of an NRO account, and the requirement for a Chartered Accountant's certificate before the bank will release it. NRE and FCNR balances are unaffected — those remain freely repatriable.
2. From 1 October 2026: the TAN requirement falls away for individual buyers
This is the change most worth knowing if you are selling Indian property, because it removes the single most common cause of a stalled transaction.
Until now, a buyer purchasing from a non-resident had to deduct tax under section 195 (now 393(2)) and — unlike a purchase from a resident, where a simple PAN-based challan suffices — had to obtain a TAN first. Ordinary buyers had never heard of a TAN, the application took time, and deals routinely paused while it came through. Some buyers walked away rather than deal with it.
| Until 30 September 2026 | From 1 October 2026 | |
|---|---|---|
| Resident individual or HUF buyer | TAN required before deducting | No TAN. Deposit with a PAN-based challan |
| Company, firm or other buyer | TAN required | TAN still required |
| TDS rate on the sale | Unchanged | Unchanged |
| Deduction on the whole sale price, not the gain | Yes | Yes — this did not change |
Read that last row twice. The relief is administrative. The substantive problem for an NRI seller is untouched: tax is withheld on the entire consideration, not on your capital gain, which is why the withholding is routinely many times the tax actually due. The fix for that remains a lower-deduction certificate — the old Form 13 route — applied for before the sale. We covered the mechanics in NRI property TDS under section 195 and the sale process in selling property in India as an NRI; both remain accurate on substance, and from October the buyer's side of it gets simpler.
One practical consequence: if your buyer is an individual and your sale can close in October rather than September, the paperwork on their side is materially lighter. That is a negotiating point worth knowing.
3. The H-1B $100,000 payment, extended to September 2027
Not a tax rule, but the single biggest financial variable for the largest group of Indian non-residents. The position as reported:
- The $100,000 payment requirement attached to certain H-1B petitions has been extended by twelve months, to 21 September 2027.
- It applies mainly to fresh petitions for specialty-occupation workers who are outside the United States and seeking entry after 00:01 ET on 21 September 2026.
- Reported exemptions: existing H-1B holders renewing or extending; many workers changing status from F-1 inside the US; and petitions granted a national-interest waiver by the Homeland Security Secretary.
- Indians are roughly seven in ten approved H-1B beneficiaries — USCIS data for FY 2024 put India-born beneficiaries at 71% of approved petitions — so the burden falls disproportionately on Indian professionals.
- In June 2026 a federal judge in Massachusetts held the charge to be an unlawful tax. The administration is appealing, and a Boston-based appeals court is reviewing it; the US Chamber of Commerce and other business groups have brought their own challenge.
So the honest summary is: it is in force, it is expensive, it is disputed, and it may not survive. If you are planning around it, plan for both outcomes rather than either.
If the answer is to come home: the tax side of returning
A returning NRI does not become fully taxable on worldwide income the day they land. Between non-resident and ordinarily resident sits RNOR — resident but not ordinarily resident — and in that window foreign salary, foreign bank interest, foreign rent and foreign capital gains generally stay outside the Indian net.
| Your history | RNOR window |
|---|---|
| Non-resident in exactly 9 of the 10 preceding years | about 2 financial years |
| Non-resident in 10 or more of the preceding years | about 3 financial years |
Two points that decide real cases. First, the window is measured in financial years, so the month you land matters: returning in April rather than February can be worth an extra year of the shelter. Second, the day-count rules that put you in or out of residence — including the 120-day test that applies to those with Indian income above ₹15 lakh — are carried into the new Act, so the counting discipline is unchanged. The day-count rules are set out here and you can test your own position in the NRI income tax calculator.
4. The rates that did not move — worth restating, because most "2026 update" posts imply they did
| Item | Position |
|---|---|
| NRO interest — TDS | 30% plus 4% cess = 31.2% for most; higher with surcharge |
| NRE and FCNR interest | Not taxable in India, freely repatriable |
| NRO repatriation ceiling | USD 1 million a financial year, CA certificate required |
| Treaty relief on NRO interest | Typically 10–15% by treaty — but only if the TRC, Form 10F and PAN are with the bank before interest is credited |
| TDS on property bought from an NRI | Rate unchanged; still on the full consideration |
The treaty row is where money is actually lost. Relief is not refunded automatically; if the documents are not lodged in time, the bank deducts at 31.2% and you are left claiming it back in a return filed months later. Diary the date your interest is credited, not the date your TRC expires.
5. One thing NRIs are told to worry about and mostly should not: TCS
Every second article on Indian remittance tax discusses TCS on the Liberalised Remittance Scheme — the ₹10 lakh annual threshold, 2% on education and medical remittances above it, nil where the remittance is funded by a qualifying education loan. Those are current, and they matter.
They are also, for most NRIs, the wrong rules. The LRS is a facility for residents sending money out of India. Money you send into India from abroad is not income and carries no TCS and no income tax on the transfer itself — the tax question is about the income the money later earns here. And money you take out of your NRO account travels the Form 145/146 route above, not the LRS one. If an adviser quotes you an LRS threshold for an NRO repatriation, they are reading the wrong page.
What to do before 31 March
| If you… | Do this |
|---|---|
| Remit from an NRO account regularly | Confirm your CA is filing Form 146 and you are filing Form 145 Part C — an old 15CB template will be rejected. Track your USD 1 million against the financial year, not the calendar year. |
| Are selling Indian property | Ask whether the buyer is an individual and whether closing can fall on or after 1 October. Separately, start the lower-deduction certificate early — that is what stops the over-withholding, not the TAN change. |
| Hold an NRO deposit | Get the TRC, Form 10F and PAN to the bank before the next interest credit. 31.2% versus a treaty rate is a large gap to reclaim later. |
| Are weighing a return because of the visa cost | Count your non-resident years first; the difference between 9 and 10 is a year of RNOR shelter. Then pick the month of return deliberately. |
| Are being advised on TCS for money you send home | Ask which scheme is being referred to. Inward remittance is not LRS. |
Frequently Asked Questions
Do I need a TAN to buy property from an NRI? From 1 October 2026, a resident individual or HUF buyer does not — tax can be deposited using a PAN-based challan, as it already can on a purchase from a resident. Company, firm and other non-individual buyers still need a TAN. Until 30 September 2026 the old requirement applies to everyone.
What is Form 145 in income tax? It is the declaration a remitter files before sending money to a non-resident or foreign company, replacing Form 15CA for every remittance made on or after 1 April 2026. It is filed per remittance, and the part you use depends on the amount: Part A up to ₹5,00,000 in the tax year, Parts B and C above that, Part D for remittances not taxable under the Act.
What replaced Form 15CB? Form 146 — the Chartered Accountant's certificate, required before Part C of Form 145 can be filed. The substance of what the CA certifies is unchanged; only the number is new.
How much can an NRI repatriate from an NRO account in a year? Up to USD 1 million in a financial year, and the bank will require a Chartered Accountant's certificate before processing it. NRE and FCNR balances are outside this ceiling and are freely repatriable.
What is the TDS rate on NRO account interest? 30% plus 4% cess, which is 31.2% for most depositors, with surcharge taking it higher for large incomes. A tax treaty can reduce it to roughly 10–15%, but only if the Tax Residency Certificate, Form 10F and PAN reach the bank before the interest is credited.
Is NRE account interest taxable in India? No. Interest on NRE and FCNR accounts is not taxable in India while you remain a non-resident, and the balances are freely repatriable. This is unchanged by the new Act.
Does the new Income-tax Act change how much tax an NRI pays? Not as a matter of rates. The 2025 Act, in force from 1 April 2026, renumbers and restructures — section 195 becomes section 393(2), Forms 15CA and 15CB become 145 and 146 — while the rates on NRO interest, capital gains and property withholding stay where they were.
What is RNOR status and how long does it last? Resident but not ordinarily resident: a transitional status for someone returning to India, in which most foreign income stays outside the Indian tax net. It typically runs about two financial years if you were non-resident in 9 of the preceding 10 years, and about three if you were non-resident in 10 or more.
Do I pay tax on money I send to my family in India? The transfer itself is not income and is not taxed, and TCS under the Liberalised Remittance Scheme does not apply to it — the LRS governs residents sending money out of India, not money coming in. What can be taxable is the income that money later earns in India, such as interest or rent.
Does the $100,000 H-1B fee apply to someone already on an H-1B? As reported, no — it applies mainly to fresh petitions for specialty-occupation workers outside the United States seeking entry after 21 September 2026, with exemptions for existing holders renewing or extending, many F-1 change-of-status cases inside the US, and national-interest waivers. The requirement now runs to 21 September 2027 and is under appeal after a federal judge held it to be an unlawful tax in June 2026.
Sources
- Form 145: Income Tax Department e-filing portal, Form 145 user manual (parts A–D, the ₹5,00,000 threshold, per-remittance filing, Form 146 prerequisite).
- Form 145 and 146 replacing 15CA and 15CB from 1 April 2026, sections 393/395/397/462 and Rule 220 of the Income-tax Rules 2026, and the penalty up to ₹1 lakh: ClearTax, "Form 145 income tax — purpose, applicability and Form 15CA substitution"; SBNRI; Setindiabiz; CAalley news report on the new declaration forms.
- NRO repatriation ceiling, CA certification, NRO interest withholding at 31.2% and treaty documentation: NRI Affairs, "NRO tax rules 2026 after the new Income-tax Act".
- TAN requirement for individual and HUF buyers from 1 October 2026, PAN-based challan, unchanged rates, section 195 renumbered to 393(2): Patron Accounting, "NRI property TDS 2026 — PAN replaces TAN"; Assetly, "NRI property rules 2026 — TCS and TAN changes".
- RNOR windows and the day-count tests carried into the new Act: India Briefing, "Understanding the new tax residency rules for NRIs"; ClearTax, "Income tax for NRI 2026".
- TCS under the LRS — ₹10 lakh threshold, 2% on education and medical remittances above it, nil where funded by a qualifying education loan: BookMyForex and PKC India summaries of the Finance Act 2026 changes effective 1 April 2026.
- H-1B: reporting of the twelve-month extension to 21 September 2027 and its scope (IAAN Express, OpIndia, International News and Views); USCIS FY 2024 data on India-born beneficiaries at 71%; the June 2026 Massachusetts ruling and the appeal.
Form numbers, sections and rules under the Income-tax Act, 2025 are new and practice around them is still settling; confirm the current position with your bank and your Chartered Accountant before a remittance or a sale. Immigration positions are as reported and are under litigation. Educational analysis, not tax, legal or immigration advice.