Instruction No: 2
of Issue: 13/02/2003
All Chief Commissioners of Income-tax
All Directors General of Income-tax
Subject: Abolition of Scheme of obtaining the 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 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
India 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
4. It is requested that the above decisions may be brought to the
notice of all concerned within your jurisdiction.
Under Secretary (TPL-III)