Form 30A, 30B, and 30C – Tax Clearance Certificate/NOC

Form 30A, 30B, and 30C – Tax Clearance Certificate/NOC. India, as a fast-growing economy, witnesses a steady influx of foreign nationals—be it for employment, consultancy, business ventures, or research purposes and these non-domiciled individuals, while in India, earn income that becomes subject to Indian taxation laws (Income Tax Return). Before they leave the country, especially for extended periods or permanently, it is necessary for the Indian tax authorities to check that there are no tax liabilities left unpaid. CBDT issues clarification in respect of Income-tax clearance certificate (ITCC) and to enforce this, the Government of India, under Section 230(1) of the Income-tax Act, 1961, mandates the issuance of a Tax Clearance Certificate in the form of a No Objection Certificate (Form 30B) for such individuals.
CBDT, vide its Instruction No. 1/2004, dated 05.02.2004, has specified that the tax clearance certificate under Section 230(1A) of the Act, may be required to be obtained by persons domiciled in India only in the following circumstances:

where the person is involved in serious financial irregularities and his presence is necessary in investigation of cases under the Income-tax Act or the Wealth-tax Act and it is likely that a tax demand will be raised against him, or

where the person has direct tax arrears exceeding Rs. 10 lakh outstanding against him which have not been stayed by any authority.

What is Section 230 of the Income-tax Act, 1961 ?
Section 230(1) of the Income-tax Act, 1961 reads:
“No person who is not domiciled in India shall leave India by land, sea or air unless he has obtained a certificate from an Income-tax authority stating that he has no tax liabilities or that satisfactory arrangements have been made for their payment.”
Find following forms included for above purpose:-

Form

Purpose

Submitted By

Submitted To

Key Requirement

30A

Undertaking to pay taxes

Employer/Payer

CIT (Intl. Taxation)

Responsibility of tax liability

30B

No Objection Certificate

Issued to Applicant

From Pr. CCIT via PRO

Issued after verification

30C

Intimation of Departure

Non-domiciled person

Income Tax Dept.

To initiate tax clearance

1. Form 30A: Undertaking to Discharge Tax Liability 
Form 30A is an undertaking furnished by the employer or the person responsible for paying income to a non-domiciled individual. It assures the Income-tax Department that all tax liabilities arising from the income earned by the individual will be paid.
This form must contain:

Name of the employee/foreign national

Details of the income paid or to be paid

Tax deduction, if any

Declaration of responsibility for any remaining tax liability

2. Form 30B: Tax Clearance Certificate / No Objection Certificate (NOC) 
Form 30B is the actual certificate issued by the Income-tax Department declaring that the concerned non-domiciled individual is free from tax liabilities or that satisfactory arrangements have been made to clear them.
This certificate allows the person to legally exit India without the risk of being pursued later for non-payment of taxes.
3. Form 30C: Intimation of Departure from India 
Form 30C is used by a non-domiciled individual to intimate the Income-tax Department of their intention to leave India and apply for a tax clearance certificate. It initiates the process of review by the concerned authorities.
Who Needs a Tax Clearance Certificate?
Tax clearance via Form 30B is mandatory for individuals who:

Are not domiciled in India

Have earned income in India (employment, consultancy, business, or investment)

Are leaving India permanently or for an extended period

Do not want any complications during immigration or at exit points (airports/seaports)

This includes:

Foreign employees on assignment in India

Visiting consultants or researchers

Foreign directors or expatriates

Non-domiciled individuals receiving income from Indian sources

SOP for Issuing Form 30B: Based on PAN Availability
The Standard Operating Procedure (SOP) for issuing the Tax Clearance Certificate varies depending on whether the applicant holds a PAN (Permanent Account Number).
Case 1: Where the Applicant Does NOT Have a PAN
In many cases, a foreign national on a short-term project or assignment may not have applied for a PAN, especially if the income earned is either exempt or minimal. The process is as follows:
1. Submission to CIT (International Taxation), Bangalore:

Form 30A – Undertaking from the employer or payer of income

Copy of Passport – For identification and travel verification

Invitation Letter from Employer – Proof of employment and duration of stay

2. Action by CIT (International Taxation), Bangalore:

Reviews and verifies the documents.

Ensures that there is no pending tax liability.

Issues a verification certificate addressed to the Principal Chief Commissioner of Income Tax (Pr.CCIT), Bangalore.

3. Processing by PRO, Pr.CCIT, Bangalore:

Receives the certificate issued by CIT.

Cross-verifies with passport and other submitted documents.

Issues Form 30B – No Objection Certificate to the applicant, enabling them to depart India.

Case 2: Where the Applicant HAS a PAN
If the foreign national has obtained a PAN, the compliance checks are more rigorous. The logic here is that a PAN implies a formal record in the Indian tax system, requiring income tax return verification and demand checks.
1. Submission to CIT (International Taxation), Bangalore:

Authorization from the Assessing Officer (AO) – Declares the filing status of Income Tax Returns and confirms no tax demand is pending for any assessment year.

Form 30A – As before, the undertaking from the employer or payer of income

Copy of Passport

2. Action by CIT (International Taxation):

Reviews AO's confirmation, PAN status, and employer's undertaking.

Issues certificate to Pr.CCIT, Bangalore.

3. Action by PRO, Pr.CCIT, Bangalore:

Processes the verified documents.

Issues Form 30B (NOC) to the applicant.

Timelines and Validity

The certificate in Form 30B is valid only for a specific journey or journeys commencing within the validity period mentioned in the certificate.

If the travel is postponed beyond this period, a fresh application and issuance process may be required.

It is advisable to initiate the process at least 15–20 days before the intended departure to avoid last-minute complications.

Practical Scenarios & Challenges
1. Short-Term Assignments (No PAN) 
Foreign consultants or visiting professors staying less than 182 days might not have PAN or formal tax filings. In such cases:

The employer’s undertaking via Form 30A becomes crucial

Authorities usually expedite Form 30B based on passport details and income records

2. Expatriates with Salary Components from India & Abroad 
If the salary is split between India and the home country:

The Indian component must be disclosed

Form 30B will only be issued once clarity on taxable income in India is established

3. Pending Tax Demands 
Even if the applicant has PAN and has filed returns, pending demands (even under dispute) may delay the process. The employer must either:

Clear the dues immediately

Provide a bank guarantee or bond ensuring future payment

Checklist for Form 30B Application
If PAN is NOT available:

Form 30A (Employer Undertaking)

Passport Copy

Invitation/Assignment Letter

Address proof in India

If PAN is available:

Form 30A

Passport Copy

PAN Card

Return filing confirmation or AO’s certificate

Tax Payment Challans (if tax already deducted)

Demand status from income tax portal (if applicable)

Form 30B Sample Format Key Fields

Full Name (in block letters)

Father's or Husband’s Name

Passport Number / Emergency Certificate Number

Validity of journey (to and from dates)

Place and Date of issue

Seal and Signature of Prescribed Authority

Therefore, Form 30B from income tax authority is mandatory for individuals who are not domiciled in the country and are leaving its territory have no unresolved tax liabilities including NRO/non Indian resident person. With the growing international mobility and cross-border assignments, the relevance of Form 30B has significantly increased. Both employers and foreign nationals must be aware of the statutory obligations and ensure timely filing of Form 30A and Form 30C, leading to the issuance of Form 30B.
Employers are particularly advised to include this compliance-issuance of Form 30B in their exit formalities for foreign employees with the help of Compliance Calendar LLP where they will guide your employee through the required procedures, with seamless international travel and comply with Indian tax laws.

India, as a fast-growing economy, witnesses a steady influx of foreign nationals—be it for employment, consultancy, business ventures, or research purposes and these non-domiciled individuals, while in India, earn income that becomes subject to Indian taxation laws (Income Tax Return). Before they leave the country, especially for extended periods or permanently, it is necessary for the Indian tax authorities to check that there are no tax liabilities left unpaid. CBDT issues clarification in respect of Income-tax clearance certificate (ITCC) and to enforce this, the Government of India, under Section 230(1) of the Income-tax Act, 1961, mandates the issuance of a Tax Clearance Certificate in the form of a No Objection Certificate (Form 30B) for such individuals.

CBDT, vide its Instruction No. 1/2004, dated 05.02.2004, has specified that the tax clearance certificate under Section 230(1A) of the Act, may be required to be obtained by persons domiciled in India only in the following circumstances:

where the person is involved in serious financial irregularities and his presence is necessary in investigation of cases under the Income-tax Act or the Wealth-tax Act and it is likely that a tax demand will be raised against him, or
where the person has direct tax arrears exceeding Rs. 10 lakh outstanding against him which have not been stayed by any authority.

What is Section 230 of the Income-tax Act, 1961 ?

Section 230(1) of the Income-tax Act, 1961 reads:

“No person who is not domiciled in India shall leave India by land, sea or air unless he has obtained a certificate from an Income-tax authority stating that he has no tax liabilities or that satisfactory arrangements have been made for their payment.”

Find following forms included for above purpose:-

Form	Purpose	Submitted By	Submitted To	Key Requirement
30A	Undertaking to pay taxes	Employer/Payer	CIT (Intl. Taxation)	Responsibility of tax liability
30B	No Objection Certificate	Issued to Applicant	From Pr. CCIT via PRO	Issued after verification
30C	Intimation of Departure	Non-domiciled person	Income Tax Dept.	To initiate tax clearance

1. Form 30A: Undertaking to Discharge Tax Liability

Form 30A is an undertaking furnished by the employer or the person responsible for paying income to a non-domiciled individual. It assures the Income-tax Department that all tax liabilities arising from the income earned by the individual will be paid.

This form must contain:

Name of the employee/foreign national
Details of the income paid or to be paid
Tax deduction, if any
Declaration of responsibility for any remaining tax liability

2. Form 30B: Tax Clearance Certificate / No Objection Certificate (NOC)

Form 30B is the actual certificate issued by the Income-tax Department declaring that the concerned non-domiciled individual is free from tax liabilities or that satisfactory arrangements have been made to clear them.

This certificate allows the person to legally exit India without the risk of being pursued later for non-payment of taxes.

3. Form 30C: Intimation of Departure from India

Form 30C is used by a non-domiciled individual to intimate the Income-tax Department of their intention to leave India and apply for a tax clearance certificate. It initiates the process of review by the concerned authorities.

Who Needs a Tax Clearance Certificate?

Tax clearance via Form 30B is mandatory for individuals who:

Are not domiciled in India
Have earned income in India (employment, consultancy, business, or investment)
Are leaving India permanently or for an extended period
Do not want any complications during immigration or at exit points (airports/seaports)

This includes:

Foreign employees on assignment in India
Visiting consultants or researchers
Foreign directors or expatriates
Non-domiciled individuals receiving income from Indian sources

SOP for Issuing Form 30B: Based on PAN Availability

The Standard Operating Procedure (SOP) for issuing the Tax Clearance Certificate varies depending on whether the applicant holds a PAN (Permanent Account Number).

Case 1: Where the Applicant Does NOT Have a PAN

In many cases, a foreign national on a short-term project or assignment may not have applied for a PAN, especially if the income earned is either exempt or minimal. The process is as follows:

1. Submission to CIT (International Taxation), Bangalore:

Form 30A – Undertaking from the employer or payer of income
Copy of Passport – For identification and travel verification
Invitation Letter from Employer – Proof of employment and duration of stay

2. Action by CIT (International Taxation), Bangalore:

Reviews and verifies the documents.
Ensures that there is no pending tax liability.
Issues a verification certificate addressed to the Principal Chief Commissioner of Income Tax (Pr.CCIT), Bangalore.

3. Processing by PRO, Pr.CCIT, Bangalore:

Receives the certificate issued by CIT.
Cross-verifies with passport and other submitted documents.
Issues Form 30B – No Objection Certificate to the applicant, enabling them to depart India.

Case 2: Where the Applicant HAS a PAN

If the foreign national has obtained a PAN, the compliance checks are more rigorous. The logic here is that a PAN implies a formal record in the Indian tax system, requiring income tax return verification and demand checks.

1. Submission to CIT (International Taxation), Bangalore:

Authorization from the Assessing Officer (AO) – Declares the filing status of Income Tax Returns and confirms no tax demand is pending for any assessment year.
Form 30A – As before, the undertaking from the employer or payer of income
Copy of Passport

2. Action by CIT (International Taxation):

Reviews AO's confirmation, PAN status, and employer's undertaking.
Issues certificate to Pr.CCIT, Bangalore.

3. Action by PRO, Pr.CCIT, Bangalore:

Processes the verified documents.
Issues Form 30B (NOC) to the applicant.

Timelines and Validity

The certificate in Form 30B is valid only for a specific journey or journeys commencing within the validity period mentioned in the certificate.
If the travel is postponed beyond this period, a fresh application and issuance process may be required.
It is advisable to initiate the process at least 15–20 days before the intended departure to avoid last-minute complications.

Practical Scenarios & Challenges

1. Short-Term Assignments (No PAN)

Foreign consultants or visiting professors staying less than 182 days might not have PAN or formal tax filings. In such cases:

The employer’s undertaking via Form 30A becomes crucial
Authorities usually expedite Form 30B based on passport details and income records

2. Expatriates with Salary Components from India & Abroad

If the salary is split between India and the home country:

The Indian component must be disclosed
Form 30B will only be issued once clarity on taxable income in India is established

3. Pending Tax Demands

Even if the applicant has PAN and has filed returns, pending demands (even under dispute) may delay the process. The employer must either:

Clear the dues immediately
Provide a bank guarantee or bond ensuring future payment

Checklist for Form 30B Application

If PAN is NOT available:

Form 30A (Employer Undertaking)
Passport Copy
Invitation/Assignment Letter
Address proof in India

If PAN is available:

Form 30A
Passport Copy
PAN Card
Return filing confirmation or AO’s certificate
Tax Payment Challans (if tax already deducted)
Demand status from income tax portal (if applicable)

Form 30B Sample Format Key Fields

Full Name (in block letters)
Father's or Husband’s Name
Passport Number / Emergency Certificate Number
Validity of journey (to and from dates)
Place and Date of issue
Seal and Signature of Prescribed Authority

Employers are particularly advised to include this compliance-issuance of Form 30B in their exit formalities for foreign employees with the help of Compliance Calendar LLP where they will guide your employee through the required procedures, with seamless international travel and comply with Indian tax laws.