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ABOLITION OF TAX CLEARANCE CERTIFICATES FOR PERSONS LEAVING INDIA AND THOSE OBTAINING COMMERCIAL CONTRACTS (ITCC)
The Central Board of Direct Taxes, New Delhi vide Notification No.153/191/2002-TPL dated 13.2.2003 has abolished the scheme of obtaining Income Tax Clearance Certificate (ITCC) applicable to persons leaving India and those obtaining commercial contracts with effect from 1st January, 2003.
The abstract of the above notification is as follows :.
(a) there shall be no requirement of furnishing Income Tax Clearance Certificate by the persons before leaving India; and
(b) no Income Tax Clearance Certificate shall be required to be furnished by any person while filing a tender for the purpose of obtaining commercial contracts, etc.
Accordingly, henceforth, no person leaving India by land, sea or air will be required to obtain a tax clearance certificate and furnish the same to the airlines, etc. except in cases of persons concerning whom the Income-tax Authorities specifically notify the immigration/customs authorities asking that such persons should not be allowed to leave India without obtaining Income Tax Clearance Certificate.
Similarly, contractors shall not be required to get Income Tax Clearance Certificate from the Income Tax Department as there will be no need to furnish such certificate while submitting tenders to Government Departments.
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