Tax Clearance Certificate

Requirement to Leave

India*

This is a document that certifies that the person to whom the tax clearance certificate is issued: 1. Does not owe any taxes to the Indian tax authorities or 2. They have made satisfactory arrangements, for payment of any existing tax liabilities that may become payable by them. Satisfactory arrangement for payment of taxes could be in the form of an employer guarantee, or any other person that is acceptable to the income tax authorities. Such tax clearance certificate is usually given in FORM NO.33.

Persons who may require tax

clearance on departure

1. People who are not domiciled in India and are in India for employment purposes. 2. Persons domiciled in India, leaving India as emigrants. 3. Indian nationals leaving to take up employment overseas. 4. Persons, who the tax department believes, are likely to leave India for good, and against whom there is a present or anticipated tax liability. In such cases the officers at departure points are notified. A copy of the information is also sent to the person concerned for their information. Persons who may not require tax clearance certificate (Sub-section (1) of section 46A of the Indian Income-tax Act, 1922) 1. Persons below the age of eighteen years. 2. Persons, who are not domiciled in India, provided that the person's continuous stay in India at a time does not exceed 120 days. 3. Persons who are for the time being, holding any civil post, under the Union or a State or a local authority, and all persons who are for the time being holding posts connected with defense. Their wives are also exempt from this requirement. 4. Diplomatic Envoys accredited to India and their wives. 5. Officials of the U.N.O. And its specialized Agencies to whom the United Nations (Privilege and Immunities) Act, 1947 applies and their wives. 6. Officials of foreign governments functioning in India, who are exempt from payment of Income tax in India, under agreement between India and the foreign government and the wives of such officials. 7. Persons permitted by the Protector of Emigrants to depart out of India to Sri Lanka, Burma or Malaya for unskilled work. 8. Persons permitted by the Protector of Emigrants under the Indian Emigration Act 1922, to be recruited for skilled work in an overseas country, except those in respect of whom the Protector at Emigrants declares that a Tax Clearance or an Exemption certificate is necessary. 9. Seamen holding Indian Continuous Discharge Certificates, proceeding from India under an agreement of service with a ship owner or an Agent or a Master of a ship, provided that the employers agree to be responsible for the payment of tax due from the seamen in respect of their wages. 10. Seamen holding Foreign Continuous Discharge Certificates proceeding from India under an agreement of service with a ship owner or an Agent or Master of a ship, provided that their preceding stay in India was of a duration not exceeding 90 days. 11. Persons proceeding on pilgrimage by sea to Iran and Iraq, provided that they travel in deck class with return tickets, hold pilgrim passes, and are not in possession of international passports. Taxation in India . . .Who must pay taxes in India . . .read now >>