Tax clearance certificate (TCC): Form No 30A & Non domiciled visitors in India

 

What is ‘domicile’?
1. The term ‘domicile’ is not defined in the Income-tax Act, 1961 or other ancillary laws.

2. Ordinarily, it means a permanent home or place where a person resides with the intention of remaining there for a prolonged/ indefinite period. i.e the domicile of a person is in that country in which he either has or is deemed by law to have his permanent home.

3. The Indian Succession Act, 1925 provides various definitions relating to the term ‘domicile’.

Sec 230:
1. Sec 230 of the Income Tax Act provides guidance on issuing a TCC to foreign nationals and non-resident Indians (NRIs) leaving India.

2. TCC is not required for most visitors and travelers leaving India, including tourists, business visitors, and short-term residents.

Criteria:
Persons not domiciled in India must obtain NOC if they meet the following criteria:
i. They are not domiciled in India.
ii. They have come to India, in connection with business, profession or employment.
iii. They have earned income from any Indian source.

Relevant forms:
1. If a person is not domiciled in India, Form 30A needs to be furnished by employer or a person through whom the income is received declaring their responsibility for any tax liabilities that might arise after he/she leaves the country.

2. After reviewing the application, the tax officer will issue the No Objection certificate i.e. TCC in Form 30B. This certificate will contain the detail of the validity and confirm that he/she have met all tax obligations up to that point.