Obtaining Income Tax Clearance for NRIs

February 01 , 2013

Obtaining Tax Clearance Certificate has been relaxed with the effect from June 1, 2003.

  1. A person not domiciled in India, who has come to India in connection with business, profession or employment and who had income derived from any source in India, is required to obtain a no-objection certificate (NOC) in Form 30B from the prescribed authority, before leaving India. Such persons shall furnish an undertake in Form 30A from his employer or the person through whom he is in receipt of the income, to the effect that the tax payable by such person shall be paid by the employer or the person through whom he receives the income. A foreign tourist or a person coming to India for a purpose other than business, profession or employment is not required to obtain the NOC.
  2. A person domiciled in India shall, at the time of his departure from India, furnish the following details in Form 30C, to the income tax authorities or other prescribed authority.
  • His Permanent Account Number (PAN)
  • The purpose of his visit; and
  • The estimated period of his stay abroad.

If the individual does not have a PAN, or is not required to obtain a PAN, or does not have taxable income; he shall furnish a certificate in the prescribed form.

A person domiciled in India in respect of whom circumstances exist, which is the opinion of the income-tax authority, render it necessary for him to obtain a tax clearance certificate, shall be required to obtain such a certificate before he leaves India. An application for this purpose is to be made in the Form No. 33, only if there are no outstanding taxes due against him in India or satisfactory arrangements have been made for the payments of such taxes.

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