Indian residents planning international travel who do not possess a Permanent Account Number (PAN) or have no taxable income will face a new mandatory compliance requirement from 2025. They must now file Form 157 before each departure from India, a significant change introduced under the new Income Tax Act 2025.
Understanding Form 157: The New Travel Declaration
Form 157 serves as a compulsory declaration certificate for Indian-domiciled individuals traveling abroad who fall outside the traditional tax bracket. This new form replaces the previous Form 156, signaling a broader initiative by the Income Tax Department to enhance compliance records for outbound travelers not otherwise captured within the tax system.
Key Changes from the Previous Regime
One of the most crucial distinctions of Form 157 from its predecessor is its submission method. While Form 156 could be filed online via the IT department's e-filing portal, Form 157 requires manual submission. There is no digital alternative available for this declaration.
Why the New Requirement?
The Income Tax Department has clearly articulated the purpose behind Form 157. It is designed for persons domiciled in India who are leaving the country and either do not have a PAN, lack chargeable income, or are not obligated to obtain a PAN. The department emphasizes its mandatory nature, stating, "Form 157 is mandatory subject to exceptions notified, if any, by the government from time to time." This move aims to gather essential information on a segment of travelers previously less visible to the tax authorities.
Every Trip Requires Filing
A detail that often surprises travelers is that Form 157 is not a one-time declaration. It is an event-based filing that must be submitted each time an applicable individual leaves India. The frequency of filing directly correlates with the number of international journeys undertaken. This means frequent travelers must integrate this step into their pre-departure routine for every international trip.
What You Need to File It
The documentation requirements for Form 157 are minimal. Travelers must present either their passport or, if available, their PAN card. In situations where a passport is not available, an Emergency Certificate issued by the relevant country's authority will be accepted as a substitute. Importantly, the IT Department has clarified that no supporting documents or proofs need to be attached to the form. It is a straightforward declaration certifying that the individual has no income chargeable to tax in India or is not required to have a PAN. While Aadhaar details are not mandatory, providing a mobile number is recommended for faster communication and verification.
Submission Process and Corrections
Form 157 must be submitted in person to the Jurisdictional Assessing Officer before departure. Due to its manual nature, corrections can be made either prior to submission or post-filing by formally requesting that a rectified version be taken on record. For frequent international travelers who do not fall within the tax net, this manual declaration is now a crucial, routine compliance step that must be factored into their travel preparations.