Parmeshta (Manager) 10 June 2010

Income Tax Clearance Certificate Needed?

Dear Sir,

We are US citizens with OCI for India. I have worked/stayed in India for last 4.5 years.

We are now going back to US. Do I need a Tax clearance certificate? If yes, what is the process?

It seems that I need to fill out form 31, but how will they give me tax clearance if I'm working till the last day I leave India? Won't I still owe taxes?

Also, what do documentation do I need to file with form 31? Do I need to fill out a form from my employer? If yes, which one?

Also, my wife has not worked while in India. Does she need a Tax clearance Certificate also? Again, what is the process?

Thanks and Regards,

--
Parmeshta

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1 Replies

Vineet (Director) 11 June 2010

Dear Parmeshtha,

As you are a person not domiciled in India, in your case an undertaking by your employer in form 30A has to be filed with the jurisdictional Chief Commissioner office (you can find it out from respective Public Relation Officer). The said undertaking specifies that the employer will pay tax payable by you (which he will any way do by deducting TDS from your salary and retaining some amount for final settlement.)

Upon receipt of such undertaking, you will be immediately issued a no objection certificate in form 30B. AND YES the NOC is mandatory as per provisions of Income Tax Act.

Since your wife had not come to India in connection with any business, profession or employment and neither had earned any income in India, she will not require any NOC.