Income tax, this tax is mostly known to everyone. Every individual whose total income exceeds taxable limit has to pay income tax based on prevailing rates applicable time to time. A person leaving India by land, sea or air is required to obtain from the Competent Authority a certificate that he has no liabilities under the direct tax laws or that he has made satisfactory arrangement for payment of his existing liabilities as also for payment of the lax that may become payable by him. The persons requiring income tax clearance arc those:
(I) Not domiciled in India provided they have stayed in India over a period of 120 days. Generally, a person holding a foreign passport is considered as not domiciled in India;
(ii) Domiciled in India at the time of departure but-
(a) Intends to leave India as an Emigrant; or
(b) Intends to leave India on a work permit for employment or occupation abroad; or
(c) In respect of whom income tax authority considers that a clearance is necessary.