F. NO. 153/191/2002-TPL
Government of India
Ministry of Finance & Company Affairs
Department of Revenue
Central Board of Direct Taxes
(TPL Division)

Room No. 147B-II, North Block
New Delhi dated the 13th February. 2003

Subject : Abolition of the scheme of obtaining Income Tax Clearance Certificate (ITCC) applicable to persons leaving India and those obtaining commercial contracts.

The undersigned is directed to bring to your notice that it has been decided with effect from 1st January, 2003:-

(a) there shall be no requirement of furnishing Income Tax Clearance Certificate by the persons before leaving India; and

(b) no Income Tax Clearance Certificate shall be required to be furnished by any person while filing a tender for the purpose of obtaining commercial contracts, etc.

2. Accordingly, henceforth, no person leaving India by land, sea or air will be required to obtain a tax clearance certificate and furnish the same to the airlines etc. except in cases of persons concerning whom the Income-tax Authorities specifically notify the immigration / customs authorities asking that such persons should not be allowed to leave without obtaining Income Tax Clearance Certificate .

3. Similarly, contractors shall not be required to get Income Tax Clearance Certificate from the Income-tax Department as there will be no need to furnish such certificate while submitting tenders to Government Departments.

4. It is requested that the above decisions may be brought to the notice of all concerned within your jurisdiction.

(DEEPIKA MITTAL)
Under Secretary