India - Income Tax Act 2010 - Saarc

1.809 CH. XVII - COLLECTION AND RECOVERY S. 230Tax clearance certificate.37230. 38 [(1) Subject to such exceptions as the Central Government may, bynotification in the Official Gazette, specify in this behalf, no person,—(a) who is not domiciled in India;(b) who has come to India in connection with business, profession oremployment; and(c) who has income derived from any source in India,shall leave the territory of India by land, sea or air unless he furnishes to suchauthority 39 as may be prescribed—(i) an undertaking in the prescribed form 40 from his employer; or(ii) through whom such person is in receipt of the income,to the effect that tax payable by such person who is not domiciled in India shallbe paid by the employer referred to in clause (i) or the person referred to in clause(ii), and the prescribed authority 41 shall, on receipt of the undertaking, immediatelygive to such person a no objection certificate 42 , for leaving India:Provided that nothing contained in sub-section (1) shall apply to a person who isnot domiciled in India but visits India as a foreign tourist or for any other purposenot connected with business, profession or employment.37. See Instruction No. 1/2004, dated 5-2-2004 and Circular No. 2/2004, dated 10-2-2004. Fordetails, see Taxmann’s Master Guide to Income-tax Act.38. Sub-sections (1) and (1A) substituted for sub-section (1) by the Finance Act, 2003, w.e.f.1-6-2003. Prior to its substitution, sub-section (1), as amended by the Direct Tax Laws(Amendment) Act, 1987, w.e.f. 1-4-1989, read as under :‘(1) Subject to such exceptions as the Central Government may, by notification in theOfficial Gazette, specify in this behalf, no person—(a) who is not domiciled in India; or(b) who is domiciled in India at the time of his departure, but—(i) intends to leave India as an emigrant; or(ii) intends to proceed to another country on a work permit with the object oftaking up any employment or other occupation in that country; or(iii) in respect of whom circumstances exist which, in the opinion of an incometaxauthority, render it necessary for him to obtain a certificate under thissection,shall leave the territory of India by land, sea or air unless he first obtains from suchauthority as may be appointed by the Central Government in this behalf (hereinafter inthis section referred to as the “competent authority”) a certificate stating that he has noliabilities under this Act, the Excess Profits Tax Act, 1940 (15 of 1940), the Business ProfitsTax Act, 1947 (21 of 1947), the Indian Income-tax Act, 1922 (11 of 1922), the Wealth-tax Act,1957 (27 of 1957), the Expenditure-tax Act, 1957 (29 of 1957), or the Gift-tax Act, 1958 (18of 1958), or that satisfactory arrangements have been made for the payment of all or anyof such taxes which are or may become payable by that person:Provided that in the case of a person not domiciled in India the competent authority may,if it is satisfied that such person intends to return to India, issue an exemption certificateeither in respect of a single journey or in respect of all journeys to be undertaken by thatperson within such period as may be specified in the certificate.’39. See rule 42(1).40. See rule 43(1) and Form No. 30A.41. See rule 42(1).42. See rule 43(2) and Form No. 30B.