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Law·20.04.2026Resumen IA
Tax Clearance Certificate Not Mandatory for All Indian Travellers: Understanding the New Forms 157 and 159
The introduction of Forms 157 and 159 under Income-Tax Rules, 2026 has caused confusion about mandatory tax clearance for all Indians traveling abroad. However, a careful reading of Section 420 of the Income-Tax Act, 2025, read with Section 536 and CBDT Instruction No. 1/2004, confirms that tax clearance certificates are required only in exceptional circumstances—such as serious financial irregularities or outstanding tax arrears exceeding ₹10 lakh—not as a routine pre-condition for foreign travel.
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