The Income Tax Department has issued a simplified explanatory note on the procedure relating to the Income Tax Clearance Certificate (ITCC) for non-domiciled persons leaving India under the Income Tax Rules, 2026.
As per the clarification, Form No. 154 and Form No. 155, which replace the erstwhile Forms 30A and 30B, are applicable to individuals who are "not domiciled in India" and are departing from the country after earning income from business or professional activities in India.
The department stated that Form 154 is required to be filed before such individuals leave India. The form acts as an undertaking submitted to the prescribed authority seeking issuance of an Income Tax Clearance Certificate (ITCC).
According to the guidance note, the form must be signed either by the employer of the person leaving India or by any other individual representing or transacting on behalf of that person. Supporting documents including the passport or emergency certificate are also required to be attached with the application.
The Income Tax Department further clarified that Form 154 is currently required to be submitted manually along with a letter or email before the intended journey. Adequate time should be provided to the department for processing the request and issuing the clearance certificate.
Once the application is processed, the prescribed authority issues Form No. 155, which serves as the no-objection certificate or Income Tax Clearance Certificate. The certificate is generated through the department's internal systems and is sent to the registered email address of the applicant. It is also made available on the taxpayer's e-filing portal.
The clarification also highlights that immigration or customs authorities may ask departing individuals to produce the ITCC while leaving India. Rule 229 of the Income Tax Rules, 2026 empowers customs officers to examine such certificates during departure formalities.
The explanatory brochure has been released by the Directorate of Income Tax as part of its simplified tax form awareness initiative aimed at improving taxpayer compliance and procedural clarity.
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