Home > Income Tax > Help Center > Income Tax Clearance Certificate Last Updated: Aug 27th 2024
Who needs Income Tax Clearance Certificate (ITCC) ?
Income Tax Clearance Certificate (aka "ITCC" in Indian Taxes) — means a certificate issued by the Income Tax Department to individual and business to prove that they have no tax liabilities in India during a specific period of time.
The following persons needs to obtain Income Tax Clearance Certificate at the time of departure from India
- Any person who is not domiciled in India
- Any person who is domiciled in India
"Domiciled in India" — means a person or business is a lawful permanent resident of India. A person can stay domiciled in India even after leaving India, if he maintains adequate connections with India.
This document covers
1. Person who is not domiciled in India
1A. Who needs to apply for Income Tax Clearance Certificate (ITCC)?
Any Person who meets the following criteria requires to obtain the Income Tax Clearance Certificate (ITCC) before leaving India by land, sea or air
- Any Person who is not domiciled in India and
- Has come to India for the purpose of business, profession or employment and
- Having income in India from any sources
Such person is required to furnish the certificate in the prescribed form to prescribed authority.
In India, this does not apply to foreign tourists or people who are not connected with any business, profession or employment.
1B. Who needs to furnish ITCC?
Such Income Tax Clearance Certificate needs to be furnished by either of the following
- Employer of the person who is not domiciled in India
- Any other person from whom the person who is not domiciled in India is receiving income
1C. How to obtain ITCC?
- The Undertaking needs to be furnished in Form 30A by the employer or any other person.
- The Undertaking should be given to the effect that the tax payable by the person who is not domiciled in India shall be payable by the employer or the other person
1D. Issue of "No Objection Certificate" of ITCC
- The Income Tax officer (prescribed authority) should give the "No Objection Certificate" immediately to the person who is not domiciled in India for leaving India.
- "No objection certificate" shall be given in Form 30B.
1E. Who is the prescribed authority for ITCC?
For the persons who are not domiciled in India:Chief Commissioner of Income Tax or the Director General of Income Tax who has jurisdiction over such persons can issue Income Tax Clearance Certificates
2. Person who is domiciled in India
- Every person who is domiciled in India and who is leaving India should furnish his PAN, purpose of visit and estimated period of his stay outside India to Income tax Officer NOTE FROM CBDT ON JULY 12TH 2024:
It is inaccurate to assume that all citizens departing India are required to obtain a Income Tax Clearance Certificate (ITCC).
Therefore, CBDT has provided clarification on this matter, that only in uncommon instances, it is necessary to obtain a ITCC for individuals who are residents or domiciled in India. Following are such instances.
- If the Person is involved in serious financial irregularities or
- If there is a pending tax demand of more than 10 lakh which is not stayed by any authority.
- Such person should not leave India by air, sea or land unless he obtains a certificate from the Income Tax authority stating that he has no liabilities under Income tax or he has made satisfactory arrangements for the tax payment
- Prior approval of Principal Chief Commissioner or Chief Commissioner of Income Tax is required for any Income Tax officer to make it necessary for any person who is domiciled in India to get ITCC
- The persons domiciled in India should submit the declaration in Form 30C