With the recent changes in the Income Tax Act, Form 157 serves as a straightforward declaration for certain Indian residents departing the country.
Although it may seem like a mere formality, neglecting it could complicate your departure process.
What is Form 157—and why is it important
Form 157 is a certificate that needs to be submitted by individuals residing in India who are travelling abroad without a Permanent Account Number (PAN) or who do not earn taxable income in India.
Essentially, it serves as a declaration to tax authorities indicating that you are not obligated to pay income tax or comply with PAN requirements. The form is submitted at the time of departure, making it particularly pertinent for travellers.
Who needs to file it
This requirement is aimed specifically at:
- Individuals based in India who are leaving the country
- Those without a PAN
- Those who lack taxable income in India
If you fit into this category, submitting Form 157 is compulsory—unless the government issues specific exemptions.When and how often to file
Unlike annual tax returns, Form 157 is event-driven. This means:
- You must submit it each time you travel abroad
- Frequent travellers without a PAN may need to file it multiple times a year
The form currently requires manual submission, reflecting its focus on individuals outside the standard tax framework.
Documents you will need
The process is simple and requires minimal paperwork:
- Passport (or an emergency certificate if your passport is not available)
- PAN information (if available, although generally not applicable here)
Crucially, you do not need to provide proof of tax payments, as the form solely serves as a declaration of non-taxability.
Travellers must manually submit Form 157 to their jurisdictional Assessing Officer prior to leaving India. As it is not fully digitised, planning ahead is essential to prevent last-minute complications.
Corrections can be made before submission, and even after, through a formal request—providing some flexibility in the process.
What travellers should consider
If you’re preparing for an overseas trip and do not have a PAN or taxable income:
- Verify if Form 157 is applicable to you
- Prepare necessary documents ahead of time
- Allow time for manual submission
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