Income Tax clearance certificate for sale of property

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You no longer need an Income Tax clearance certificate to sell property. The relevant section of the Income Tax Act (Section 230A) was removed in 2001. Sub-registrars will now accept property transfer registrations without this certificate, though you will need the PAN details of all involved parties.

kanika

kanika (Querist)
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01 June 2022 hi
Such certificate is required or exists as per the income tax act to have an Income tax clearance certificate for sale out of the property of a person?

Saurabh Anokhchand Jain

Saurabh Anokhchand Jain (Expert)
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01 June 2022 As per my knowledge, Earlier Income tax has a section i.e section 230a which dealt with restrictions on registration of transfer of immovable property but the same have been already omitted by the finance act, 2001, with effect from June 1, 2001. Thus there is no requirement for obtaining the clearance certificate from the income tax department.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 July 2022 Not required now. Sub-Registrar accepts registration document without IT clearance certificate, but need PAN/s of all the concerned persons.

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