What is a Tax Clearance Certificate?

A tax clearance certificate is generally a statement that shows that a taxpayer has paid all his or her due tax debts and does not have any pending or due taxes. This Tax clearance certificate is issued by the state government's Department of Revenue and generally indicates that a person has no tax obligations. 

All the different types of taxes, like the sales tax, use tax, franchise tax, or any other type of tax, are covered under the Tax Clearance certificate. 

Who is Required to Obtain an Income Tax Clearance Certificate? 

If a person meets the following 3 eligibility criteria, then they are allowed to get a tax clearance certificate from the Income Tax Department. 

  • If they are not a resident of India.
  • If they are traveling for any work, business, or other purposes. 
  • Gets income from India through any sources. 

How to Get an Income Tax Clearance Certificate? 

 Follow the steps given below to get a tax certificate: 

  1. First, you need to file a request to the employer to get all the salary details. This will help to see the clear salary structure. 
  2. As a non-resident, you need to get the Form 30A and enter all the information, then submit the form to the relevant tax officer. 
  3. With the form, you must attach your declaration certificate from your employer stating that any tax which found later will be their responsibility. 
  4. If the process goes smoothly, then you will get an ITCC with an application form 30B. 

Related Glossary

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