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How to get Income tax clearance to leave India
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
A: Any person who goes to India for the
purpose of employment and has income from any source in India is
required to provide an undertaking that all taxes have or will
be paid.
In cases where tax is due, or will be due as you are working
till the day you leave. The tax assessing officer is authorized
to issue clearance in Form 32 if the tax payer has made
satisfactory arrangement for payment of taxes that may be
payable by them.
One of the acceptable methods for providing guarantee that taxes
will be paid is by obtaining guarantee from your employer. The
employer acts as a guarantor that if tax is found to be due, it
will be paid by the guarantor.
Your employer and accounting department
should be able to handle this for you.
Form 31 is required to be filled. The assessing officer then
issues tax clearance certificate in Form 33. Your employer or
the local tax office will be able to provide you with the
necessary form. For sample purpose you can view Form 31
HERE and Form 33
HERE
Foreigners working in India can get one-time tax clearance: There are many foreign employees not domiciled in India. To save them the hassles of obtaining a tax clearance each and every time such employees travel abroad, there is a provision where they can get a one time clearance certificate that covers a period of up-to five years.
This type of one-time clearance is given in those cases where their employers give a guarantee in the prescribed form that if any tax is found due against the employee during the entire period of the contract of service plus two years the same shall be paid by the employer. Such a guarantee may also cover the tax liabilities of the spouse and dependents of the foreign employee.
Pan Card Application
Q: I am applying for PAN card and sent
an email to NSDL asking the following questions, but didn't
get any reply. Happened to find your website/email address
and decided to try to get the answers to my questions. Would
highly appreciate your help in this regard.
Regards,
BN Roy
Here's what I sent to NSDL:
from:
Bn Roy
to: tininfo@nsdl.co.in
SubjectPAN- Form 49A
I am a US citizen living in US and applying for a new PAN. I
would highly appreciate if would kindly answer the following
questions regarding the application form:
1. Demand draft-in the amount of Rs. 744- what should it be
in US $ ? Also should I include the words "payable at
Mumbai" after 'NSDL PAN' if
not where should it be?
2. Office Address- presume this is not required for
individuals with no office of their own -is this correct?
3. Would copy of 'OCI' be acceptable as proof of identity as
well as proof of address?
4. Where can I find the 'AO' type, area code, range code
etc?
5. Should I mail the application form to NSDL's Baner, Pune
- 411045 address, ?
Your early response will be highly appreciated.
Yours' sincerely,
B.N.Roy
A: Too bad you did not get a response. They do have a telephone number for inquiries. The number in Mumbai is 27218080 and area code for Mumbai is 20. This number does work, I just called it and a tape played a welcome message with information that their hours of service are Monday to Friday from 9:30 am to 8 pm and on Saturdays from 9:30 am to 6 pm. I actually called from Seattle, the time in India was 2:30 am.
Regards to your questions:
1. As exchange value changes fast the money
is usually sent in Indian Rupee format. Ask your bank to
give you a bank draft payable in Indian
Rupees and
they will convert the US$ as per exchange rate. Draft should
be payable at Mumbai and drawn in favor of 'NSDL - PAN'
2. Office address you can do without.
3. OCI may not be acceptable on its own.
I know PIO card is acceptable but it so happens that OCI is
not on their list so far. List of documents
that are acceptable as proof of address and proof of identity
for foreign Pan card applicants is provided
HERE
4. For 'AO' type you should use the AO Code DLC-C-35-1
5. The application form is to be sent to
NSDL at 'Income Tax PAN Services Unit, National Securities
Depository Limited, 3rd floor, Sapphire
Chambers, Near Baner Telephone Exchange, Baner, Pune - 411045
Mail Indian Passport Overseas
Q: Hi, I am US citizen. My expired Indian
passport is in India. Can an passport (Expired) be obtained by
mail. I mean, any law restrictions?
Thanks
Harjinder
A: Indian passports clearly state on the passport, "Passport should not be sent out of any country by post" This information is printed on the back pages of Indian passports under the heading 'REGULATIONS'
Courier companies in India are aware of this rule and will not accept passports to courier abroad.
Readers comments & feedback. Post your comment or answer a question . . .
Om Prakash
2011/1/4 7:14 am
Dear Sir/Madam,
I am Indian citizens and holding Indian
passport. I am working in consultancy firm in
India and now I going to USA for job. My present
employer is deducting TDS every month and my
employer has told me that till today I don’t
have any income tax due. Do I need a Tax
clearance certificate? Ii yes, what is the
process? What are the documents required to get
income tax clearance?
Thanks and regards,
Om Prakash
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