OVERVIEW
A tourist who has been in India for more than a period of 120 days and leaving India by land, sea, or air is required to obtain from the competent authority a certificate stating that he has no liabilities under the Direct Tax Laws. Otherwise, he is needed to submit an affidavit stating that he has made satisfactory arrangements for payment of his existing tax liabilities and for the payment of the tax that may become payable by him. The Assistant Commissioner of Income Tax (Foreign Section) requires the applicant to submit a clearance certificate in Form No. 32 from the Assessing Officer of the area where the tourist has normally resided during his stay.

PERSONS REQUIRING TAX CLEARANCE CERTIFICATE
Normally, a person holding a foreign passport is not considered to be domiciled in India. The cases where income-tax authority may consider that tax clearance certificate (TCC) is necessary include persons who are likely to leave India for good and against whom there is a present or anticipated tax liability.

PROCEDURE
If a person is not domiciled and eligible for TCC, he should make an application to the Assistant Commissioner of Income Tax (Foreign Section) of the area. After receiving the application, the assessing officer will verify whether there is any tax demands still due. For this, it is advisable to take necessary proof of all the tax payments to the Assessing Officer to facilitate such verification. The Assessing Officer, after satisfying himself that the applicant has all the taxes cleared or that he/she has made necessary arrangements to clear all his/her taxes, will issue an authorization to this regard. If a company or institution gives the guarantee, it has to be ensured that the person authorized for this purpose signs it. If a person is working, then the Assessing Officer may ask for a guarantee from the employer of the person leaving the country that if any tax is found due the employer will pay it. In the case of a person who is not an existing taxpayer, the assessing officer will verify the person's statement regarding his income and attempt to ascertain if he has been earning any income that is liable to tax. A sworn affidavit may also be insisted upon or inquiries can be made that the applicant has not earned any income that is liable to tax during his stay in India.