From October 1, 2024, non-resident Indians (NRIs) visiting India must mandatorily submit an income tax clearance certificate to the Income Tax Department before leaving the country. The new rule is reportedly being enforced under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. In the case of resident Indians, they must provide their Permanent Account Numbers (PAN cards) and reasons for travelling abroad.

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The airlines and ships carrying them out will also have to check and ensure that the travellers comply with the order. If an individual travels on a privately owned carriage, the onus will lie on them to clear the dues and obtain the certificate before departure. If they fail to do so, the I-T Department will take appropriate measures to recover the dues, the Hindustan Times reported.

What is a Tax Clearance Certificate and Who Provides It?

An income tax clearance certificate (ITCC) is issued by the state revenue department to certify that the individual has cleared the tax dues, if any. The rule applies to non-resident Indians visiting the country for business or vacation or generating income from an Indian source. It also applies to individuals with income from India, such as business or employment. Tax authorities can also request an ITCC if they suspect financial irregularities. However, the Central Board of Direct Taxes (CBDT) clarified that ITCC is not mandatory for individuals domiciled in India.

If any tax liability arises after leaving, the employer or the source through which the income was derived will be responsible for clearing the dues. In short, the certificate clears the person from any future legal responsibility while allowing them to leave the country without worry.

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How to Download the Tax Clearance Certificate Online

One can download the Income Tax Clearance Certificate (ITCC) online. Non-resident Indians with income from an Indian source can apply for the certificate by submitting an undertaking from their employer/source in form 30A and relevant documents. The undertaking states that the employer will cover any tax dues the individual owes upon leaving the country without clearing them. However, this service is not available online. If the income tax officer is satisfied, they will issue the tax clearance certificate in Form 30B. The certificate will also mention a validity date or the period until it will be accepted.