With the introduction of the Income-tax Act, 2025 and Income-tax Rules, 2026, a new compliance framework has been prescribed for individuals leaving India.

At the centre of this framework are Form 156 and Form 157, linked to Section 420, which replaces the earlier provisions of Section 230 of the Income-tax Act, 1961.

Effective Date

These provisions are applicable from:

1 April 2026 (Tax Year 2026–27 onwards)

Legal Framework

  • Form 156 → Prescribed under Section 420(3)
  • Form 157 → Prescribed under Section 420(4) read with Rule 228 of Income-tax Rules, 2026

Understanding the Two Forms

Form 156 – Declaration (Online)

Applicable typically where:

  • The individual holds a PAN, and
  • Is required to furnish details/declaration before leaving India

This is an online compliance form, capturing:

  • PAN
  • Travel purpose
  • Duration of stay abroad

Form 157 – Certificate (Manual)

Applicable in specific cases where:

  • The individual does not hold a PAN, or
  • Claims no taxable income in India

This is not merely a declaration but a certificate-based compliance, submitted to the jurisdictional Assessing Officer.

Important Distinction

Form 156 = Declaration / Information filing
Form 157 = Certification requirement

This distinction is critical and should not be treated interchangeably.

Applicability – Not Universal

While the framework is now introduced, it is important to note:

  • The requirement is event-based (triggered at the time of leaving India)
  • It applies only where prescribed conditions are met

What About Exemptions?

At present:

  • Exemptions are not blanket-based
  • They will apply only where specifically notified by CBDT

👉 Therefore:

Taxpayers should not assume exemption without checking the latest notification.

Context: Replacement of Earlier Forms

These new forms replace earlier forms under the 1961 Act framework, such as:

  • Form 30A
  • Form 30B
  • Form 30C
  • Form 31

The shift reflects a move toward a more structured and digitised exit compliance system.

Practical Position

  • Forms 156 and 157 are now formally introduced
  • Legal backing exists under the new Act and Rules
  • However, on-ground enforcement and procedural clarity may evolve further

Conclusion

The introduction of Form 156 and Form 157 marks a shift in how outbound individuals may be required to report or certify their tax position.

However:

This is a conditional compliance framework, not a blanket requirement for all travellers.

Taxpayers should evaluate:

  • PAN status
  • Taxability
  • Applicable notifications

before determining whether these forms apply.