The following
categories of persons are required to produce a tax clearance
certificate from the concerned assessing officer prior to their
departure:-
- persons who are not domiciled
in India, and in whose case the stay in India has exceeded 120
days;
- persons of Indian or non-Indian
domicile whose names have been communicated to the
airlines/shipping Companies by the Income Tax authorities;
- persons who are domiciled in
India at the time of their departure; but
- intend to leave India as
emigrants; or
- intend to proceed to
another country on a work permit with the object of taking
any employment or other occupation in that country; or
- in respect of whom
circumstances exist, which in the opinion of the income tax
authorities render it necessary for him to obtain the Tax
Clearance Certificate.
Such certificates is granted
where there are no outstanding taxes under the Income Tax Act, the
Excess Profits Tax Act, the Business Profits Tax Act, the Wealth Tax
Act, the Expenditure Tax Act or the Gift Tax Act against him or
where satisfactory arrangements have been made for the payment of
any such taxes. Obtaining guarantee from the employer of the person
leaving the country is one of the methods of ensuring satisfactory
arrangement for payment of taxes. For those who have to go abroad
frequently for employer's work, facility of one-time Clearance
Certificate has been provided to the foreign employee who has a
fixed tenure of service in India or upto 5 years on furnishing an
employer's guarantee in the prescribed form for payment of any tax
that may be found due against him during the entire period of
contract plus two years. |
