Tax Clearance Certificate require before leaving India
Individuals who want to travel outside India sometimes are obliged to secure a Tax Clearance Certificate (TCC) to check on whether there is any tax that the person has not paid. This requirement mainly applies to people who do not hold the Indian citizenship and the foreign persons having continuous stay in India.
The main reason of the TCC is to ensure that the person has paid all the taxes they are required to as an employee before they leave the employer. In order to receive a certificate, formal notification 30A must be filed with the income tax department of the country; it stipulates the period of stay in the country, income and taxes paid. This form has to be supported with a No Objection Certificate from the employer if any, copy of the Indian income tax returns filed, and a statement of the assets and the liabilities.
The TCC is issued by the Tax Authorities after they have reviewed the documents submitted through the application. The certificate eliminates any legal challenges or fines in the future concerning taxes, thereby ensuring the authorities that the person has met all tax requirements.
Before any person intends to travel out of the country, he or she should ensure they obtain the TCC as the process may sometimes take some time. It will also be useful to consult with a tax professional to check all the requirements and do it quickly. This TCC is an essential legal document in case non-citizens and foreign nationals need to depart India without any problems concerning taxes.
