Income Tax Clearance Certificate

1. The individual is not domiciled in the country.

Who does not need to obtain the Income Tax Clearance Certificate?

Indian residents need not obtain the ITCC. In case they are going abroad, the Permanent Account Number (PAN) must be provided along with the reason for travelling. However, authorities may request for the ITCC in the case of any financial irregularities.

Under Section 230, it is not compulsory for individuals who are domiciled in the country to obtain the ITCC. The amendment will come into effect from 1 October 2024.

Uses of Income Tax Clearance Certificate

The main uses of the ITCC are mentioned below:

1. Legal Matters: In the case of any settlements of financial disputes, the ITCC may need to be submitted.

1. Property Transactions: In the case of transfers (corporations) or high-value property transactions, you may need to provide certificate.

1. Contracts: The ITCC may need to be provided in case you are bidding for any government contracts. This will show that all tax dues have been paid.

1. Loan Applications: In case you are applying for a loan, the ITCC may be requested for by the lender.

1. Business Transactions: In case any business transactions are being made with large corporations or government agencies, the ITCC may need to be provided.

Process to Obtain Income Tax Clearance Certificate

The different ways to obtain the ITCC are mentioned below:

1. A proclamation can be filed with the employer in the country.

1. A proclamation can be filed with the individual who provide the income.

1. By providing a request to the jurisdictional tax officer. Form 30A must be submitted. Form 30B will be provided as ITCC with the validity of the certificate.

How to Download the Income Tax Clearance Certificate?

The process that must be followed to download the ITCC is mentioned below:

1. Visit the income tax portal where the taxes are filed.

1. Log in to your account.

1. Visit the Certificate Section.

1. Under compliance documents or certificates, you will find Tax Clearance Certificates.

1. You will find the option to download or request for the certificate. Select the relevant option. A form may need to be filled out.

1. An OTP may be sent to the registered mobile number to download the certificate.

1. Enter the OTP to complete the verification process.

1. Next, you will be able to download the ITCC in PDF format.

What happens if Income Tax Clearance Certificate is not Submitted?

In it important that non-residents who leave India pay all necessary taxes. In case the ITCC is not submitted, the below-mentioned conditions will arise:

1. The ship or aircraft that is transporting the individual abroad must check all the documents. In case the documents are not checked, tax dues must be cleared by them.

1. In case the individual is leaving India on a privately owned carriage, the tax dues must be checked. In case they are not checked, the Tax Authority of India can take necessary action to collect the tax.

An important document to show that all tax dues have been cleared is the ITCC. Non-residents must provide the ITCC before leaving abroad. The document can be obtained only when tax dues are cleared and the relevant documents have been submitted.