Foreign Travel Under the New Income Tax Act, 2025: Is Form 156 Mandatory Before Every Overseas Trip?
The new Income Tax Act, 2025, effective from 1 April 2026, introduces a significant compliance requirement for individuals travelling abroad. One of the notable changes is the replacement of the old Form 30C with a new Departure Compliance Form – Form 156.
The provision has already generated considerable discussion among taxpayers, travel enthusiasts, and tax professionals because it potentially affects a large number of Indian residents travelling overseas for business, tourism, education, medical treatment, or family purposes.
But who exactly needs to file Form 156? Is it required for every foreign trip? Are there any exceptions? Let us examine the new provisions.
A New Compliance Requirement for Foreign Travel
Under the Income Tax Act, 2025, certain individuals travelling outside India may be required to furnish a declaration before departure.
The objective appears to be strengthening tax compliance and enabling the Income Tax Department to maintain information regarding overseas travel by persons having taxable income in India.
To achieve this, the Act introduces Form 156, which replaces the earlier Form 30C framework.
Who Is Required to File Form 156?
A person will generally be required to file Form 156 if all the following conditions are satisfied:
✔️ The person is domiciled in India.
✔️ The person possesses a PAN.
✔️ The person has taxable income in India.
If these conditions are fulfilled, Form 156 is required to be submitted online before travelling abroad.
This means that many resident taxpayers who regularly undertake international travel may need to comply with this requirement.
Is Form 156 a One-Time Filing?
No.
One of the most important aspects of the new provision is that the filing is linked to each foreign trip.
The law contemplates that:
A fresh Form 156 must be filed before every overseas journey.
A previously filed form cannot be reused for future travel.
Each international trip requires a separate compliance filing.
In practical terms, a frequent international traveller may need to file multiple Forms 156 during a year.
Who Should File Form 157 Instead?
The Act also introduces Form 157 for persons who do not fall within the category requiring Form 156.
Form 157 is applicable where:
The individual does not possess a PAN; or
The individual has no taxable income in India; or
The individual is not legally required to obtain a PAN.
Thus, taxpayers and non-taxpayers are placed under separate reporting categories.
Quick Reference Table
Category Applicable Form
PAN Holder + Taxable Income Form 156
No PAN Form 157
No Taxable Income Form 157
PAN Not Required Form 157
What Information Must Be Furnished?
The proposed Form 156 requires basic identification and travel-related information, including:
Name of the traveller
PAN
Passport number
Passport details
Purpose of travel
Estimated duration of stay outside India
The information appears intended to create a standardized departure reporting mechanism.
Are All Travellers Covered?
Not necessarily.
The Act contains an important exception.
It provides that persons specifically exempted by the Central Government will not be required to comply.
While detailed guidelines are still awaited, earlier CBDT instructions under similar frameworks suggest that the primary focus may not be on ordinary tourists or casual travellers.
Historically, such provisions have been aimed at persons:
Facing investigation for serious financial irregularities;
Having substantial outstanding tax demands;
Involved in significant tax disputes;
Falling within specified compliance-monitoring categories.
Particular attention has often been given to cases involving tax arrears exceeding ₹10 lakh, where no stay against recovery has been granted.
However, the final position will become clear only after detailed notifications, rules, or circulars are issued by CBDT.
Why Tax Professionals Should Monitor This Provision Closely
The introduction of Form 156 may create a completely new compliance area for tax practitioners.
Chartered Accountants and tax consultants may need to assist clients in:
Determining whether the filing requirement applies;
Understanding exemptions;
Ensuring timely filing before travel;
Addressing procedural issues once detailed rules are notified.
The provision may be particularly relevant for:
Businesspersons undertaking frequent overseas visits;
Professionals travelling for conferences and assignments;
Students going abroad for higher studies;
High-net-worth individuals with international engagements.
Practical Challenges Ahead
While the objective of tax compliance may be understandable, several practical questions remain unanswered:
Will the form be mandatory for every tourist visit?
What happens in emergency travel situations?
Will there be penalties for non-compliance?
How will the filing system operate?
Will airlines or immigration authorities verify compliance?
These issues are likely to be clarified through future CBDT notifications and procedural guidelines.
Conclusion
Effective from 1 April 2026, the new Income Tax Act, 2025 introduces Form 156 as a departure compliance requirement for persons who are domiciled in India, possess a PAN, and have taxable income in India. Individuals who do not have a PAN or do not have taxable income may instead be required to furnish Form 157.
A fresh form is proposed to be filed before every foreign trip, making overseas travel a new area of tax compliance. However, important operational details and exemptions are still awaited from the Government.
Until comprehensive CBDT guidelines are issued, taxpayers planning international travel should closely monitor developments. As with many new tax provisions, the fine print may ultimately determine who is actually required to comply and who remains outside its scope.
