Form 154 Income Tax Rules 2026 pdf download and Key points

Last Updated on: April 18, 2026

Form 154 Income Tax Rules 2026 pdf download and Key points

FORM NO. 154
[See rule 228]
Form of undertaking to be furnished under section 420(1)

Under the new Income-tax Rules, 2026, Form No. 154 replaces the old Form 30A. It is governed by Section 420(1) of the Income-tax Act, 2025, and Rule 228 of the Income-tax Rules, 2026.

Here are all the key points regarding Form No. 154:

1. Purpose of the Form Form 154 is an undertaking furnished when a person not domiciled in India is leaving the country. It serves as a formal guarantee by an employer or another person in India that they will pay any taxes arising on behalf of the departing individual in respect of transactions with them.

2. Applicability (Who Should File and Sign)

Eligible Taxpayer: It applies to any person who is not domiciled in India, who came to India in connection with business, profession, or employment, and who has derived income from any source in India.
Mandatory Nature: Yes, it is mandatory for such non-domiciled persons to obtain tax clearance before leaving.
Who Signs: While the form is filed by the taxpayer leaving India, it must be signed by either their employer in India or any other person transacting with or representing them in India.

3. Frequency and Due Dates

Event-Based: The form is filed only when the applicable taxpayer is leaving India.
No Fixed Timeline: There are no statutorily prescribed deadlines for filing, as it depends on the individual’s travel plans. However, it must be submitted with sufficient time for the Income Tax Department to process it and issue the clearance certificate before the journey begins.

4. Mode of Filing Unlike most new tax forms which are fully electronic, Form 154 is submitted manually by the person leaving India before the prescribed authority. It is generally attached to a letter or email requesting the Tax Clearance Certificate.

5. Structure of the Form The form is divided into distinct sections:

Part A (Details of the Employer/Representative): Captures the name, Permanent Account Number (PAN), communication address, email, and phone number of the employer or the other person providing the guarantee.
Part B (Information of the Person Leaving India): Captures the departing person’s Name, Father’s/Husband’s name, PAN, and Passport details.
The Undertaking: The formal declaration by the employer/representative committing to pay the departing person’s tax liabilities.

6. Mandatory Documents and PAN Requirements

Required Documents: A copy of the departing person’s Passport must be annexed to the form. In the absence of a passport, an Emergency Certificate issued by their country is required.
Proof of Tax Payment: Attaching proof of tax payment is not strictly mandatory, but if there is an existing tax liability, providing the payment proof allows the Assessing Officer to process the request much faster.
PAN is Mandatory: Form 154 cannot be submitted without a valid PAN. Because the form acts as a financial undertaking by an entity in India on behalf of the departing individual, both the respective PANs are necessary to verify liabilities.

7. Outcome of Processing (Form 155)

Upon the successful processing of Form 154, the Assessing Officer or prescribed authority will issue Form No. 155, which is the official Tax Clearance Certificate.
The departing person must present this Tax Clearance Certificate to Immigration Officers if requested to do so; non-compliance may result in action as per immigration regulations.