Section 420 — Tax clearance certificate

(1) Subject to such exceptions as the Central Government may, by
notification, specify in this behalf, no person,—
( a) who is not domiciled in India;
( b) who has come to India in connection with business, profession or
employment; and
( c) who has income derived from any source in India,
shall leave the territory of India by land, sea or air unless he furnishes to such
authority as may be prescribed—
( i) an undertaking in the prescribed form from his employer; or
( ii) through whom such person is in receipt of the income,
to the effect that tax payable by such person who is not domiciled in India shall be
paid by the employer referred to in clause (i) or the person referred to in clause (ii),
and the prescribed authority shall, on receipt of the undertaking, immediately give
to such person a no objection certificate, for leaving India.
(2) Nothing contained in sub-section (1) shall apply to a person who is not domiciled
in India but visits India as a foreign tourist or for any other purpose not connected
with business, profession or employment.
(3) Subject to such exceptions as the Central Government may, by notification,
specify in this behalf, every person, who is domiciled in India at the time of his
departure from India, shall furnish—
( a) the Permanent Account Number allotted to him under section 262;
( b) the purpose of his visit outside India; and
( c) the estimated period of his stay outside India,
to the income-tax authority or such other authority in such form, as may be
prescribed.
(4) Where no such Permanent Account Number has been allotted to any person
referred to in sub-section (3), or his total income is not chargeable to income-tax,
or he is not required to obtain a Permanent Account Number under this Act, such
person shall furnish a certificate in such form, as may be prescribed.
(5) No person—
( a) who is domiciled in India at the time of his departure; and
( b) in respect of whom circumstances exist which, in the opinion of an
income-tax authority render it necessary for such person to obtain a
certificate under this section,
shall leave the territory of India by land, sea or air unless he obtains a certificate
from the income-tax authority stating that he has no liability under this Act or
the Wealth-tax Act, 1957 (27 of 1957) or the Gift-tax Act, 1958 (18 of 1958) or the
Income-tax Act, 1961 (43 of 1961) or the Expenditure-tax Act, 1987 (35 of 1987) or
the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax
Act, 2015 (22 of 2015), or that satisfactory arrangements have been made for the
payment of all or any of such taxes which are or may become payable by that person.
(6) No income-tax authority shall make it necessary for any person who is domiciled
in India to obtain a certificate under this section unless—
( a) he records the reasons therefor; and
( b) obtains the prior approval of Principal Chief Commissioner or Chief
Commissioner.
(7) If the owner or charterer of any ship or aircraft carrying persons from any
place in the territory of India to any place outside India allows any person to whom
sub-section (1) or (5) applies to travel by such ship or aircraft without first satis -
fying himself that such person is in possession of a certificate as required by that
sub-section, he shall be personally liable to pay the whole or any part of the amount
of tax, if any, payable by such person as the Assessing Officer may, having regard to
the circumstances of the case, determine.
(8) In respect of any sum payable by the owner or charterer of any ship or aircraft
under sub-section (7),—
( a) the owner or charterer, shall be deemed to be an assessee in default for
such sum; and
( b) such sum shall be recoverable from him in the manner provided in this
Part as if it were an arrear of tax.
(9) The Board may make rules for regulating any matter necessary for, or incidental
to, the purpose of carrying out the provisions of this section.
(10) For the purposes of this section, the expressions “owner” and “charterer”
include any representative, agent or employee empowered by the owner or chart-
erer to allow persons to travel by the ship or aircraft.