Form 157 is a declaration in the form of a certificate required to be furnished by persons domiciled in India before leaving India, in certain specific instances.
The government has clarified that the Form 157 does not need to be filled out by every domiciled person before leaving India.
The Government has refuted a social media video claiming that all Indian citizens must obtain an income-tax clearance certificate (ITCC) every time before leaving the country. The Press Information Bureau’s Fact Check Unit stated that this claim is false, noting that such certificates are only necessary for specific individuals under certain legal conditions.
Further, the PIB Fact Check handle on X shared a release dated August 2024, which means this is not a new rule. Under Section 230, tax clearance certificates are not mandatory for everyone; they are only required for specific individuals under certain legal circumstances. This rule has remained unchanged since 2003, even after the amendments vide Finance (No. 2) Act, 2024.
It essentially means not all Indians have to submit an income-tax clearance certificate before leaving India, and the requirement for the tax declaration statement has been in place since 2003.
There are certain requirements under Section 420(4) of the Income-tax Act, 2025, Rule 228 of Income-tax Rules, 2026, for furnishing the certificates.
Form 157 is a declaration in the form of a certificate required to be furnished by persons domiciled in India before leaving India, in certain specific instances. It is to be filed at the time of departure.
Form 157 is for individuals domiciled in India who, before leaving the country, either do not have a PAN, have income not subject to tax under the Act, or are not required to obtain a PAN.
The government has further clarified that the Form 157 does not need to be filled out by every domiciled person before leaving India, but only by the persons as specified by the CBDT, vide its Instruction No. 1/2004, dated 05.02.2004 i.e.”
(i) where the person is involved in serious financial irregularities and his presence is required for the investigation of cases under the Income-tax Act, 1961 or Income-tax Act, 2025 or the Wealth-tax Act, and a tax demand will likely be raised against him, or
(ii) where the person has direct tax arrears exceeding Rs. 10 lakh and the said tax demand has not been stayed by any authority.
“Form 157 is an undertaking required to be furnished by individuals domiciled in India at the time of departing the country. This requirement is prescribed under Section 420(4) of the Income-tax Act, 2025, read with Rule 228 of the Income-tax Rules, 2026. The Form 157 comes into effect from 1 April 2026, i.e., from Financial Year 2026–27 onwards. Accordingly, individuals falling within the specified categories will be required to furnish this form before leaving India on or after that date,” says Suresh Surana, a Mumbai-Based Chartered Accountant.
Form 157 is a modifiable manual form submitted to the Assessing Officer, serving as a certificate-style declaration about an individual’s departure from India. It certifies the absence of taxable income or the need for a PAN, with tax payment details being optional, and Aadhaar is no longer necessary for personal information.
“In terms of procedure, Form 157 is to be submitted manually to the jurisdictional Assessing Officer before departure from India. At present, there is no online facility for filing this form, particularly as it may apply to individuals who do not hold a PAN,” says Surana.
If the person does not have a PAN, then he may find his jurisdictional Assessing Officer (JAO) based on his place of residence or place of business. The JAO can be found using the same process as applying for a new PAN, using the Area code, AO Code, Range Code, etc.
Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. Tax laws and regimes are subject to frequent changes by the government. Readers should verify details with official Income Tax Department notifications or consult a Chartered Accountant before making any financial decisions. Financial Express is not responsible for any decisions made based on this information.
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