RULG_183 - Taxpublishers.in

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The Tax Publishers Rules 42 to 44B [1] Tax Clearance Certificate 1. Statutory provisions In view of sub-section (1) of section 230 a person who is not domiciled in India and who has come to India in connection with business, profession or employment and who has income derived from any source in India to furnish to such authority as may be prescribed, an undertaking in the prescribed form, to the effect that the tax payable by such person shall be paid by the employer or the person from whom income is received. The powers for this purpose are conferred upon the Central Board of Direct Taxes to specify, by rules, the income‑tax authority to whom undertaking, as specified, shall be furnished by a person not domiciled in India. Further in view of sub-section (1A) of section 230 a person who is domiciled in India shall be required to furnish details regarding the permanent account number, the purpose of his visit and estimated period of stay outside India, in the prescribed form to the income‑tax authority or such other authority, as may be prescribed. The power is further conferred upon the Central Board of Direct Taxes to specify, by rules, the form as also the income‑tax authority and such other authority to whom the form is to be furnished in case of a person domiciled in India. The Central Board of Direct Taxes has also been empowered to specify, by rules, the form and the authority to whom certificate shall be furnished by the persons who have not been allotted permanent account number or whose income is not chargeable to income‑tax or who are not required to obtain permanent account number under the Income Tax Act. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Tax Clearance Certificate

1. Statutory provisions

In view of sub-section (1) of section 230 a person who is not domiciled in India and who has come to India in connection with business, profession or employment and who has income derived from any source in India to furnish to such authority as may be prescribed, an undertaking in the prescribed form, to the effect that the tax payable by such person shall be paid by the employer or the person from whom income is received.

The powers for this purpose are conferred upon the Central Board of Direct Taxes to specify, by rules, the income‑tax authority to whom undertaking, as specified, shall be furnished by a person not domiciled in India.

Further in view of sub-section (1A) of section 230 a person who is domiciled in India shall be required to furnish details regarding the permanent account number, the purpose of his visit and estimated period of stay outside India, in the prescribed form to the income‑tax authority or such other authority, as may be prescribed.

The power is further conferred upon the Central Board of Direct Taxes to specify, by rules, the form as also the income‑tax authority and such other authority to whom the form is to be furnished in case of a person domiciled in India.

The Central Board of Direct Taxes has also been empowered to specify, by rules, the form and the authority to whom certificate shall be furnished by the persons who have not been allotted permanent account number or whose income is not chargeable to income‑tax or who are not required to obtain permanent account number under the Income Tax Act.