5 Things About Tax Clearance Certificates Every Expatriate Should Know about ?


tax-clearanceMany expatriates who may be working for foreign company in India or may be on deputation to India are required to seek tax clearance certificate (TCC) from Income Tax Authorities before leaving India. This legal requirement is on account of  section 230 of the Income-tax Act, 1961 under which  a person who is not domiciled in India cannot leave the territory of India by land, sea or air unless he obtains a certificate from the “Competent Authority” that he has no liability under various Acts mentioned therein, or that satisfactory arrangement have been made for the payment of all or any of such taxes which are or may become payable by that person.  The law for obtaining the tax clearance certificate was even for Indian residents , but now they require to give merely a declaration in prescribed form. Section 230 of the Income Tax Act deals with the issue of tax clearance certificate obtained by domiciled residents and non-domiciled non residents.

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