An income tax clearance certificate is a statement given by the tax authorities that the taxpayer has cleared his all dues and now he is not responsible for paying any of the taxes. According to the Act of 1961, an income tax clearance certificate is a sufficient document to do further transactions. It is issued by the revenue department of the state government.
There are a few types of Taxes that are covered under this certificate. It includes sales tax, use tax, employment tax, franchise of corporation tax etc. Read on and find out why you need to get an income tax certification course online.
If you are an Indian and want to leave the country
In such a case you need to submit from 30 C to the authorities who are associated with it. Once your application is approved, authorities should certify in form 33.
If you are a person who is not domiciled in India who has come to India for business purposes profession or employment and who derives or earns income from any source in India
In such cases, the person first submits Form 31 to employers from whom he earned income etc based on this information provided by the employer.
Who needs an income tax certificate?
According to the income tax department, any person who is not officially a resident of India who comes to India for business purposes and earns any kind of income from a business profession or employment requires an income tax clearance certificate before leaving India. So, get an income tax certification course and complete your legal duties.
Who does not need an Income Tax Clearance Certificate?
Any individual who is not domiciled in India but comes to India as a tourist or for any other purpose which is not connected with business professional employment does not need to obtain an income tax clearance certificate from tax authorities.
Who can apply for an income tax clearance certificate?
An individual who travels to India for business profession or employment purposes must obtain an income tax certificate before leaving the country.
An individual who is not a resident of India can get a certificate from their employer or the source of their income.
What happens if the income clearance certificate is not submitted?
Unknown resident Indians need to clear all the taxes before leaving India if he doesn't submit them then the following situation arises:
It is the responsibility of the aircraft who take them out of the country to check all the necessary documents before taking off in case any failure they label is paid to tax use on behalf of a non-resident.
Conclusion
An Income Tax Clearance Certificate is an important piece of document issued by the tax authorities to certify that the particular individual has cleared all the taxes, dues and outstanding and is not liable for any tax. Income tax certification courses are available for you which provide you with all the guidelines and information regarding Income tax clearance certificates.
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