Recovery under Agreements with Foreign Countries [Section 228A]
- If foreign Government certifies arrears under its law against a resident or person having property in India, CBDT may forward certificate to TRO for recovery in India.
- TRO recovers as per Indian law and remits net proceeds to CBDT.
Recovery of Penalty, Interest and Other Sums [Section 229]
- Any interest, fine, penalty, or other sum payable under the Act is recoverable as tax arrears.
Tax Clearance Certificate [Section 230]
- Person Not Domiciled in India
o Required when visiting India for business, profession, or employment and earning income in India.
o Not required for tourists or non-business visits.
o To obtain: The employer or payer provides an undertaking in Form 30A, which is submitted to the CCIT/DGIT. The CCIT/DGIT then issues a certificate in Form 30B, which is valid for a specified period.
- Person Domiciled in India
o Required only if the Assessing Officer, with the approval of the Principal CCIT/CCIT, believes the departure of a person from India may harm revenue.
o The CBDT has specified the following situations: serious financial irregularities under investigation, or direct tax arrears exceeding Rs. 10 lakh that have not been stayed.
o Certificate generally not required; instead, Form 30C with PAN, purpose, and stay period abroad to be furnished.
o To obtain a certificate: Application in Form 31 to be filed before the Assessing Officer, who may issue a certificate in Form 33.
o AO can refuse only if arrears are unpaid or arrangements have not been made. If no tax is due, the certificate cannot be refused.
- Responsibility of Ship or Airline Owners
o Must ensure that passengers required to obtain a certificate possess it.
o Failure makes the owner or charterer personally liable for unpaid tax.
o Treated as assessee-in-default and recoverable as tax arrears.