Income Tax Form 154: Tax Undertaking for Persons Leaving India

Form 154 under the Income-tax Act, 2025 is a mandatory undertaking required from non-domiciled persons leaving India who have earned income from Indian sources. The form is filed by the taxpayer but must be signed by an employer or any person transacting with or representing the departing individual, undertaking to pay any tax liability arising on their behalf. It is an event-based compliance, required each time such a person leaves India, and is essential for obtaining a Tax Clearance Certificate in Form 155. The form is filed manually with the prescribed authority and must include key details such as PAN, passport information, and supporting documents. Non-filing may result in complications at immigration if tax clearance is requested. The provision ensures that tax dues are secured before departure, thereby strengthening tax enforcement and preventing revenue leakage from non-residents exiting India.

FAQs on Income Tax Form 154 (Earlier Form 30A): Form of undertaking to be furnished under section 420(1) of Income tax Act 2025

Form 154— Frequently Asked Questions

Form of undertaking to be furnished under section 420(1) of the Act

Q1: What is Form 154?

Ans: Form 154 is a form filed by a person not domiciled in India when leaving India. The form is an undertaking by employer/other person that they will pay any taxes arising on behalf of the person leaving India in respect of transactions with them.

Q2: Who should file Form 154?

Ans: The Form 154 is to be filed by taxpayer but is to be signed by

(a) employer for his employee leaving India or

(b) any other person transacting with or representing the person leaving India

Q3: Is Form 154 mandatory?

Ans: Yes, Form 154 is mandatory for non-domiciled persons leaving India who came in connection with business, profession or employment and who has income derived from any source in India.

Q4: What is the time limit for filing Form 154?

Ans: Form 154 must be filed when leaving India in order to obtain tax clearance certificate in Form 155. Thus, there is no statutorily prescribed time-limits or timelines for filing this Form, as it is dependent on the travel plans/requirements of the person leaving India. However, the person must take care that sufficient time is available to the department to consider the Form and issue the Form 155 before the travel journey is undertaken.

Q5: How many times can Form 154 be filed in a year?

Ans: Form 154 is event-based and is filed each time a non-domiciled person (fulfilling the said conditions of income from India) is leaving India.

Q6: What documents are required to file Form 154?

Ans: The following documents would be required to be annexed to the Form 154.

1) Passport of the person leaving India.

2) In absence of Passport, Emergency Certificate of the country issuing the same.

Q7: Do I need to attach proof of tax payment?

Ans: It is not necessary to attach any proof of tax payment. Where there is tax liability existing, tax payment proof can be attached to allow the Assessing Officer process the request faster.

Q8: While filling personal details, can I leave Aadhaar or mobile number blank?

Ans:

• Aadhaar is no longer required in the personal details.
• Mobile number ensures faster communication and verification; it is recommended to provide it.

Q9: What if I do not have a PAN?

Ans: Form 154 cannot be submitted without a valid PAN. This is because it is an undertaking by employer or other person in India on behalf of the non-domiciled person leaving India. The undertaking is with respect to payment of taxes, if any arises, for the person leaving India and hence, there is requirement of PAN for those filing Form 154.

Q10: Can Form 154 be filed offline?

Ans: Yes. Form 154 is to be filed by the person leaving India but the form is signed by an employer/other person. Hence, it is kept as a manual form and is to be filed offline with the prescribed authority.

Q11: What is the process flow of filing Form 154?

Ans: The form is submitted manually by the person leaving India before the prescribed authority. This is generally attached to a letter/mail requesting Tax Clearance Certificate

Q12: Why is Form 154 important?

Ans: The form is an undertaking by employer/other person that they will pay any taxes arising on behalf of the person leaving India in respect of transactions with them. Only on the submission of this form, the prescribed authority can issue the tax clearance certificate. This certificate is to submitted to the immigration officers, if they so ask, by the person leaving India.

Guidance Note on Income Tax Form 154 (Earlier Form 30A): Form of undertaking to be furnished under section 420(1) of Income tax Act 2025

FORM 154- Form of undertaking to be furnished under section 420(1)  of the Act

A. PURPOSE

It is a form filed by a person not domiciled in India when leaving India. The form is an undertaking by employer/other person that they will pay any taxes arising on behalf of the person leaving India in respect of transactions with them. It is a requirement under Section 420(1) of the Income-tax Act, 2025 and prescribed in Rule 228 of Income-tax Rules, 2026.

B. WHO SHOULD FILE

The Form 154 is to be filed by taxpayer when leaving India, but is to be signed by

(a) employer for his employee leaving India or

(b) any other person transacting with or representing the person leaving India

The tax payer is the person not domiciled in India, who came in connection with business, profession or employment and who has income derived from any source in India.

C. FREQUENCY & DUE DATES

Filed when the assessee/ person who is temporarily residing in India is leaving India. It is event-based and must be filed whenever the said taxpayer is leaving India.

D. STRUCTURE OF FORM -154

• Details of employer/other person such as name, communication address, email, phone number etc.
• Undertaking from the said employer/other person that they will pay any taxes arising on behalf of the person leaving India in respect of transactions with them
• Information of the person leaving India such as name, PAN, Passport details Page 1 of 2

E. WHAT ARE THE DOCUMENTS REQUIRED TO FILE THE FORM 154?

1) Passport of the person leaving India

2) In absence of Passport, Emergency Certificate of the country issuing the same

F. FILING COUNT:

N.A. Being manual, centralised data is not available.

G. WHAT IS THE PROCESS FLOW OF FILING FORM 154?

The form is submitted manually by the person leaving India before the prescribed authority. This is generally attached to letter/ mail requesting Tax Clearance Certificate

H. OUTCOME OF PROCESSED FORM 154

On processing of Form 154, Assessing Officer will issue Form 155 which is the Tax Clearance Certificate.

Outcome of Non-compliance: The Tax Clearance is to be submitted to the Immigration Officers if asked to do so. They will decide action as per their regulations, in case of non­compliance

I. BRIEF NOTE ON BROAD OR QUALITATIVE CHANGES PROPOSED Key updates include the following

• The Form is bifurcated into Part A & Part B. Part A corporates the template containing the information of the employer/other person undertaking to pay the tax
• Part B contains the information of the person leaving India including Passport/ Emergency Certificate details.

J. CHALLENGES AND SOLUTIONS

Since the undertaking is to be obtained from another party, it is going to be manual and thus, the form remains manual to enable easier filing

K. COMMON CHANGES MADE ACROSS FORMS

1. Assessment / Financial / Previous year or years have been replaced with Tax year or years, wherever appearing in the Form/Annexure.

2. Sections, Clauses and Schedules changes as per the Income-tax Act, 2025.