What is Form 157 and why is it a must for people without taxable income travelling abroad?
As India prepares for one of its most significant tax overhauls in decades, a new compliance requirement is set to change the pre-flight checklist for thousands of international travelers. Starting April 1, 2026, under the new Income-tax Act, 2025 and Income-tax Rules, 2026, individuals without taxable income or a Permanent Account Number (PAN) will be legally required to file Form 157 before leaving the country.
What is Form 157?
Form 157 is a newly introduced mandatory certificate/undertaking designed for persons domiciled in India who are traveling abroad.
Its primary purpose is to allow travelers to formally declare that they:
- Do not possess a PAN, or
- Have no income chargeable to tax in India
This form replaces part of the earlier compliance structure and is designed to improve documentation of non-taxable travelers.
Structural Change in the New System
Under the previous Income-tax Act, 1961, all travelers used a single manual document known as Form 30C.
Under the new regime, this has been split into two categories:
- Form 156: Fully electronic form for individuals with a PAN and taxable income
- Form 157: Manual form for individuals without PAN or taxable income
Who Must File It?
Form 157 applies to individuals who fall outside the tax net, including:
- Students traveling abroad for studies
- Homemakers
- Retired individuals without taxable income
If you are domiciled in India and do not have a PAN or taxable income, filing Form 157 is mandatory under Section 420(4) of the new Act.
A Manual Process in a Digital System
Despite most tax processes being digitized, Form 157 remains a fully manual submission.
It cannot be filed online because it applies to individuals without a PAN.
Submission Process:
Travelers must:
- Submit the form physically to the Jurisdictional Assessing Officer
- Provide a passport (or Emergency Certificate, if applicable)
- Include a self-declaration confirming non-taxable status
Frequency and Timing
- Form 157 is event-based, not annual
- It must be submitted each time the individual travels abroad
- Multiple trips = multiple submissions
- It must be filed at the time of departure
Why Is This Necessary?
The introduction of Form 157 reflects a broader push toward structured compliance and better data tracking.
Even for non-taxable individuals, the government aims to:
- Maintain transparency in outbound travel
- Document non-taxable departures systematically
- Strengthen administrative oversight of cross-border movement
Quick Tips for Travelers
- No tax proof required: The form itself is a declaration of non-taxable status
- Aadhaar optional: Not mandatory, but a mobile number is recommended for communication
- Corrections allowed: Errors can be corrected before submission or via formal request later
Travelers, especially students and families sending members abroad are advised to stay aware of these requirements to avoid last-minute compliance issues at the airport.