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New Travel Compliance Rule Raises Awareness Among Non-Taxpayers

If you are planning an overseas trip but do not hold a PAN or fall outside the taxable income bracket, there’s an important compliance requirement you should not ignore. Under the updated provisions of the Income Tax Act, 2025, a new declaration—Form 157—has been introduced, replacing the earlier Form 156.

This move is aimed at tracking individuals who are not part of the tax system but are traveling abroad. Authorities say the step is designed to improve transparency and maintain accurate records of international travel linked to financial compliance.

Who Needs to File Form 157?

The new rule specifically applies to:

• Individuals who do not have a PAN (Permanent Account Number)
• Individuals whose income does not fall under the taxable bracket

If you belong to either category and plan to travel abroad, you are now required to submit Form 157 before every trip. This is not a one-time requirement—each foreign journey will require a fresh submission.

Why This Rule Has Been Introduced

The government has been tightening financial monitoring systems to ensure better compliance and data tracking. Even individuals outside the tax net are now expected to provide a basic declaration when engaging in activities like international travel.

Officials believe this step will help prevent misuse of financial loopholes and strengthen the overall tax ecosystem without imposing additional tax burdens on non-taxpayers.

Offline Submission Makes Timing Crucial

Unlike its predecessor, Form 157 cannot be submitted online. It must be filed manually with your jurisdictional Assessing Officer.

This change means travelers need to plan ahead and complete the paperwork well before their departure date. Delays in submission could potentially lead to inconvenience or complications during travel-related procedures.

Documents Required to Fill Form 157

The documentation process is relatively simple. Here’s what you may need:

• A valid passport (or an emergency certificate if a passport is unavailable)
• PAN details (optional, if available)
• A working mobile number for communication

The form itself is a declaration stating that you are not liable to pay income tax or are not required to hold a PAN. It does not require detailed income disclosures or any tax payment.

What Happens If You Skip This Step?

Ignoring this requirement could lead to unnecessary trouble during your travel process. While the exact consequences may vary, failure to comply with the declaration rule could result in scrutiny or delays.

Experts recommend completing the process proactively to avoid last-minute issues.

Final Takeaway

The introduction of Form 157 marks a shift in how authorities monitor financial compliance linked to international travel. Even if you are not part of the taxable income group or do not hold a PAN, you may still need to complete this simple declaration before traveling abroad.

To stay on the safe side, always verify the latest rules through official government channels and ensure all required formalities are completed well in advance.