A viral social media claim recently suggested that all Indians must get an Income-Tax Clearance Certificate (ITCC) before travelling abroad.
That’s not true.
The government has officially clarified that this rule does not apply to everyone.
In fact, only a small group of people need such clearance under specific conditions.
Viral Claim vs Reality
The Press Information Bureau (PIB) Fact Check Unit has called the claim false.
According to the government, most Indian citizens can travel abroad without any income-tax clearance.
This rule hasn’t changed recently and has been in place for years.
Even after updates in tax laws, the requirement remains limited to certain cases only—not for all travellers.
Who Actually Needs Tax Clearance?
Tax clearance is required only in specific situations.
For example:
If a person is involved in serious financial irregularities and is under investigation
If someone has unpaid tax dues above Rs 10 lakh that haven’t been resolved
Only in such cases may authorities require a clearance certificate before allowing travel.
What Is Form 157?
Form 157 is a declaration linked to tax clearance rules.
It applies to certain individuals living in India who are leaving the country and fall under specific conditions—such as not having a PAN or having non-taxable income.
This form will come into effect from April 1, 2026, and will be applicable from the financial year 2026–27 onwards.
Do All Travellers Need to Fill Form 157?
No, not everyone needs to fill Form 157.
The government has clearly stated that only selected individuals, as defined by tax authorities, are required to submit it.
For most people, this form is not needed at all.
How Is Form 157 Submitted?
Form 157 is a manual form.
It must be submitted to the jurisdictional Assessing Officer (JAO) before leaving India.
There is currently no online filing option.
If someone does not have a PAN, they can still locate their assessing officer using details like area code and location—similar to the PAN application process.
Key Takeaway
There is no new rule requiring all Indians to get tax clearance before travelling abroad.
The requirement applies only to specific cases involving tax issues or investigations.
For the vast majority of travellers, there is no extra step needed before leaving the country.
