Income Tax Clearance Certificate: Meaning, Importance & Download Process

Certain transactions in India require obtaining an Income Tax Clearance Certificate (ITCC). This certificate, issued by the tax authorities, acts as proof that all your tax dues are settled. But who is required to get it—and why?

This blog explains what an ITCC is, why it matters, and how you can download it. Keep reading to know more.

What is an Income Tax Clearance Certificate (ITCC)?

An Income Tax Clearance Certificate is an official declaration from Indian tax authorities confirming that you have no outstanding tax dues. It certifies that all current liabilities are cleared, although future transactions may still create tax obligations. The state’s revenue department is responsible for issuing this certificate.

A person must obtain an ITCC if they meet all three of the following conditions:

They are not domiciled in India
They are visiting India for business or professional purposes
They have earned income from any source within India

In short, any non-resident individual earning income in India—whether through employment, business, or any Indian source—must secure an ITCC.

The certificate may also cover other taxes such as sales tax, corporate tax, unemployment tax, or any other levies applicable as per the state’s tax laws.

Once the income tax officer verifies the submitted details, the ITCC is issued in Form 30B, which also indicates the certificate’s validity period.

Indian residents are not required to obtain an ITCC. Instead, they must provide their PAN along with the reason for travelling abroad. However, if authorities suspect financial non-compliance, they may still request an ITCC.

Note: The Central Board of Direct Taxes (CBDT) has clarified under Section 230 that individuals domiciled in India do not need a tax clearance certificate before leaving the country. This rule will apply from October 1, 2024.

Who Needs an Income Tax Clearance Certificate?

Under Indian tax regulations, an Income Tax Clearance Certificate (ITCC) is issued to individuals who are not domiciled in India. These individuals generally earn income from Indian sources—whether through business, employment, or professional activities—and must obtain tax clearance before leaving the country.

The requirement for an ITCC applies to anyone meeting all of the following conditions:

The individual is not an Indian citizen
The individual is in India for business, employment, or any professional purpose
The individual has earned income from any source within India

Note: The ITCC is typically mandatory for non-domiciled individuals travelling abroad. Indian citizens are not usually required to obtain an ITCC unless the Income Tax Department specifically asks for it.

How to Obtain an Income Tax Clearance Certificate Online in India

Currently, there is no online system for applying for an ITCC. Instead, individuals must submit a declaration to their employer or the entity responsible for paying their income. A non-resident earning income from any Indian source can receive the certificate by providing an undertaking in Form 30A from their employer.

This undertaking confirms that if any tax remains unpaid after the expatriate leaves India, the employer will be responsible for clearing those dues.

Once the Income Tax Officer reviews and approves the submitted undertaking and related documents, the ITCC is issued in Form 30B.

Documents Required for Income Tax Clearance Certificate (ITCC)

To obtain an Income Tax Clearance Certificate, the following documents are generally needed:

Application Form (Form 30A): This is the main form for applying. Ensure all details are correct and updated.
Passport Copy: A valid passport copy is required for identity verification and travel details.
Proof of Tax Payment: Provide evidence of taxes paid in India, including income tax returns for the last three assessment years.
PAN Card Copy: A copy of your Permanent Account Number (PAN) card is essential for tax identification.
Additional Financial Records: Based on your financial profile, authorities may request bank statements, salary slips, investment proofs, or other relevant documents.

How to Download a Tax Clearance Certificate?

As mentioned earlier, the ITCC cannot be downloaded online. The expatriate must submit Form 30A along with all necessary supporting documents.

Once the Income Tax Officer reviews the submission and is satisfied with the details provided, the tax clearance certificate is issued in Form 30B. The certificate includes a validity period, which is clearly stated on the document.

What is Form 30C in Income Tax?

Typically, Indian residents are not required to obtain an ITCC when travelling abroad, unless they intend to leave the country permanently. In such cases, providing a valid PAN is sufficient. However, they must still file Form 30C, which includes details about their travel, purpose, and expected duration.

There are specific circumstances where a domiciled individual may be instructed to obtain an ITCC:

When the person is involved in any tax or financial irregularities and their presence is required for investigation
When outstanding tax dues exceed ₹10 lakh and no stay order has been granted

Generally, most resident Indians do not need an ITCC. But if someone is suspected of major financial misconduct, is facing legal scrutiny, or may be liable for significant tax demands, the Income Tax Department may direct them to obtain a tax clearance certificate prior to departure.

Even in such cases, an ITCC for a domiciled Indian can be issued only after an order from the Chief Commissioner of Income Tax.

Is It Mandatory to Submit Form 30C?

Yes. If a domiciled resident is travelling abroad without the intention of permanently relocating, they must file Form 30C and provide their PAN details.

Who Issues the Tax Clearance Certificate?

After the individual or their employer submits the required undertaking, the authorities verify all documents. Once verification is complete and approved, the revenue department of the respective state government issues the Income Tax Clearance Certificate in the individual’s name.

What Is the Purpose of a Tax Clearance Certificate?

Under the Income Tax Act, any non-resident earning income from an Indian source during their stay is responsible for paying tax on that income. The Tax Clearance Certificate confirms that the departing individual has settled all tax dues for the specific period of their stay in India. It also states that if any tax liability arises after their departure, the employer who paid the income will be responsible for clearing those dues.

This certificate therefore protects the expatriate from future legal or tax obligations and allows them to leave India without concern.

Tax Clearance for Non-Domiciled Individuals

For individuals who are not domiciled in India, the process for securing an Income Tax Clearance Certificate (ITCC) varies slightly. The individual or their employer must submit Form 30A, which is an undertaking guaranteeing the payment of any tax dues that may arise after their departure.

Once the Income Tax Officer examines and approves the documents, a No Objection Certificate (NOC)—also called a Tax Clearance Certificate (TCC)—is issued in Form 30B. This document confirms that the individual has met all applicable tax requirements up to the date of leaving India, and it specifies the period for which the certificate remains valid.

Relevant Forms:

Form 30A – Undertaking under Section 230(1)
Form 30B – NOC / Tax Clearance Certificate for Non-Domiciled Individuals

By completing these formalities and submitting the required forms, individuals can ensure a smooth and compliant departure from India.

What Happens If You Don’t Submit an Income Tax Clearance Certificate?

A non-resident must settle all pending tax dues before leaving India. If such an individual fails to obtain or submit an ITCC, two possible situations may occur:

When departing by aircraft or ship:
The carrier transporting the individual out of India must verify all required documents before departure. If they fail to do so, the airline or shipping company becomes personally liable for any unpaid taxes of the non-resident.
When leaving through a private mode of transport:
It becomes the individual’s sole responsibility to settle all tax liabilities and obtain an ITCC. If they leave without doing so, the Indian tax authorities are empowered to initiate recovery proceedings for any outstanding tax dues.

Final Word

An ITCC plays a crucial role in confirming that a person has no pending tax liabilities. While it is not required for resident Indians, non-resident individuals must obtain the certificate before leaving the country. It is issued only after all dues are cleared and the necessary documents are submitted.

FAQs on Income Tax Clearance Certificate (ITCC)

Is an Indian citizen required to obtain an ITCC?

Generally, no. Indian citizens do not need to obtain an Income Tax Clearance Certificate unless:

They are suspected of major financial irregularities, or
They have outstanding tax dues exceeding ₹10 lakhs with no stay order granted by the tax authorities.

What is Form 30B?

Form 30B is the Income Tax Clearance Certificate issued by the Income Tax Officer after verifying Form 30A and ensuring that all tax dues and documents submitted by the non-resident are in order.

What is Form 30A?

Form 30A is an undertaking submitted by the employer of a non-resident individual. Through this form, the employer agrees to take responsibility for any outstanding tax liabilities of the employee after they leave India.

What is an Income Tax Clearance Certificate (ITCC)?

An Income Tax Clearance Certificate is an official document issued by the Income Tax Department confirming that an individual or entity has no pending tax liabilities up to a specific date. It is required for certain official procedures, foreign travel by non-residents, or high-value transactions to ensure tax compliance.

What happens if a non-resident leaves India without an ITCC?

If a non-resident departs India without obtaining an ITCC:

The carrier (airline or shipping company) may become liable for the non-resident’s unpaid taxes.
The individual may face tax recovery actions, penalties, or legal proceedings initiated by the Indian Income Tax Department.

Who needs an ITCC in India?

Non-residents leaving India permanently or for long-term assignments, especially those who have earned income in India, are typically required to obtain an ITCC.

Is ITCC needed for returning Indian citizens or tourists?

No. Tourists, returning residents, and individuals with no taxable income in India do not need an ITCC.

How can a non-resident apply for an ITCC?

The process involves:

Filing Form 30A (undertaking by employer).
Submitting necessary documents such as TDS details, income proofs, PAN, and tax computation.
Waiting for the Income Tax Officer to review and issue Form 30B.

How long does it take to obtain an ITCC?

The processing time varies by assessing officer and the completeness of submitted documents. Typically, it may take 7–21 working days.

Do self-employed non-residents need Form 30A?

No. Self-employed individuals or those without employers must directly submit supporting documents for tax clearance instead of Form 30A.

Is ITCC required for foreign remittances?

No, ITCC is not required for routine foreign remittances. Banks may ask for Form 15CA/15CB instead, depending on the nature of the transaction.