What is the Income Tax Clearance Certificate and When is it Issued

In a period of quick globalization, many countries have witnessed a significant increase in the number of secondments or deputations to fulfill the administrative demands of having the correct employees with suitable skill-sets at the right place. A Tax Clearance Certificate is a printed confirmation from Revenue that an individual’s tax affairs are in order at the date of the subject of the Certificate. In a few instances, and a Certificate may be delivered to a customer who has tax debts provided such arrears are enclosed by a repayment arrangement that has been decided with Revenue.

The necessity to produce a Tax Clearance Certificate typically arises from the situation of a person seeking State money through Government contracts, grants or obtaining licenses such as road transport license, excise license, etc. however it can also rise in other circumstances such as the Standards in Public Office Act, 2001 lately applied tax clearance necessities to persons elected to the Dail or Seanad, senior office appointees or judicial appointees. Apart from situations where a person is officially needed to produce a Tax Clearance Certificate, Revenue is also organized to issue a Certificate to some customers whose tax affairs are in the proper place.

A tax clearance certificate is not obligatory for many residents and nationals. However, such a person is needed to obtain an ITCC in the following situations:

  1. Involvement in serious monetary irregularities and his/her attendance is compulsory for the examination of cases below the law, and it is mostly that a tax demand will get materialized.
  2. Such an individual has straight tax arrears which have not been stayed by any specialist.

An individual not domiciled in the country might get an ITCC from the jurisdictional tax          officer on submitting a responsibility in the arranged form that is Form 30A. Such responsibility must be from the person or employer from whom income is acknowledged, to the effect that all the tax dues which might develop to be payable by such colonial after leaving the country will be cleared by the employer or such person. 

On receipt of such a responsibility, along with pertinent documents, the main tax officer, if content with the information furnished to the person, might give ITCC to the applicant emigrant in Form 30B, which is effective for the period stated therein. However, it is important to note that the tax agreement form will be treated as invalid if it is not signed properly. 

On the other hand, people domiciled in India are only required to provide their tax registration number, i.e., PAN, the purpose of visit outside of the country, and projected period of stay outside India. Here the firm can agree to reimburse certain relocation expenditures suffered and paid by the worker or to pay certain relocation expenditures on behalf of Member. As part of the employee relocation agreement, hereto agree to repay on or before the last day of employment with the Corporation. The said info is to be submitted in a quantified form, i.e., Form 30C, which is filed with the tax office before leaving. As discussed above, the need to obtain an ITCC is obligatory by law in quantified situations, and non-compliance might attract other consequences or penal.


In the absence of an ITCC from the tax authorities (wherever required), the tax authorities may direct the immigration authorities to stop a person from leaving the territory of India by land, sea, or air unless he obtains such a certificate. Also, non-compliance with the aforementioned needs to obtain an ITCC might hamper or pose a postponement in getting a visa for subsequent visits to the country on business or profession or for other service purposes.

Applications for a Tax Clearance Certificate

Customers necessitating a Tax Clearance Certificate must ensure that their tax affairs are in order before sending it to an application for a Certificate. Customers can check the eminence of their tax affairs of their agents registered with the Revenue Online Service (ROS) with the help of ROS or Customer Information Services. If a client’s tax affairs are not accurate and in order there, you can then apply for a Certificate like the applications, that would, in any event, be declined, simply make the unnecessary expense and delay for all troubled.

Let’s check how to get income tax clearance certificate:

In case if you are liable in getting an income tax clearance certificate, the very first step is to do the below things:

  • If at work, you must take an undertaking in a prescribed form from the company.
  • If you are in business, you must take an undertaking in a prescribed form from the individuals of the income.

In respect of the tax payable in respect of income-earning will be paid by the resident, and later, it will go to the IT department. Post this; you would immediately get a no-objection certificate in the form of tax clearance. The certificate is effective for one year. Application for the fresh certificate can be made once a month previous to the date on which the legitimacy of the previous certificate owes to expire.

Print a Tax Clearance Certificate (TCC) by filing the tax compliance status. You can then request their Tax agreement status through a SARS branch and get a PIN or, if needed, request a printed TCC where the SARS manager would be comfortable in printing or email the TCC or TCS PIN to them.

Thus, in light of the above significances, it is suitable to duly comply with the appropriate provisions before leaving the country. It also states what exactly makes for an Income Tax Clearance and the conditions on which it can be issued.

Author Bio:

What is the Income Tax Clearance Certificate and When is it Issued
What is the Income Tax Clearance Certificate and When is it Issued

Jessica, a writer by calling and an academic, has created scintillating and remarkable content for dozens of websites in the purview of the Business Sector. She has a fair understanding of the inner workings of several business establishments, making her the foremost expert in this field.