When are tax clearance forms needed?

sticky

Hi

Does anyone have any recent information regarding the need for an income tax clearance form for people who have stayed in India for 6 months(?) or longer.

I have had a bit of a hunt around here, but all the information is years old, and some of it contradictory.

Basically what I wanted to know is:
How long do you have to be in India for to require one?
Does it have to be a continuous stay, or is it cumulative eg 6 months out of one year, and if so is that a financial year or a calendar year?
Are they hard to get? I have read that you can only get one from Delhi, which might be a bit of a pain in the arse for me

Most people here have said don't bother, but what happens if they ask and you don't have? Baksheesh?

Thanks

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crvlvr

Froma Rajastan travel Guide Website:

Tax Clearance Certificates

If you stay in India for more than 120 days you need a 'tax clearance certificate' to leave the country. This supposedly proves that your time in India was financed with your own money , not by working in India or by selling thing or playing black market.

Basically all you have to do is find the Foreign Section of the Income Tax Department Jaipur and turn up with your passport, visa extension form, any other similar paperwork and a handful of bank exchange receipts (to show you really have been changing foreign currency into rupees officially). You fill in a form and wait for anything from 10 minutes to a couple of hours, you are then given your tax clearance certificate. We have not heard from anyone who has actually been asked for this document on departure, but I recommend you to obtain one to be on safer side.

machadinha

That's funny, except for the last half line it's a direct quote from the LP guide ('93 edition).

Oh they've changed the Jaipur bit around too of course, originally it reads "Delhi, Calcutta, Madras or Bombay."

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sticky

Had a quick look around with google (probably should have done that first, but I seem to just automatically head here now for any India info!!)

Apparently you can get them from the he foreign section of the Income Tax Department at Delhi, Calcutta, Madras and Bombay. And its required for any continuous stay of more than 120 days.

So the next question is:
How long are they valid for?
can you pick one up when you arrive, and leave 120 days later on it? I doubt it! But does anyone know the know exactly how long they last? If no one is going to ask for one, it all seems a bit of a pain!

And the keeping reciepts thing!!!! how many do you have to keep, are they anal about that kind of thing, or will 5 over a few months do? and what happens if youre paying by card half the time?

Im not big on reciepts! Its a good job Im going with my girlfriend, i think she has reciepts dating back to 1915.

crvlvr

stcky, its not about just picking up the form. he form will will completed by the income tax depart to indicate an assertion that you do not owe any taxes in India. now, what you will need to prove this to the ITO is a completely different matter. they may have their own requirements..

Obviously, immigration will want to see fairly recent "clearance" from the income tax.

sticky

Yeah i realise that, what im getting at is:
say you are going to nepal, you will need to get one in calcutta, i was wondering if anyone knew how long you have to leave the country after it has been issued?

Kanehanahou

Umm, this is for a visa other than a tourist visa?

sticky

A tourist visa

machadinha

I may be completely wrong but my understanding was you get the tax clearance form shortly before departure, its expiry is not really an issue although you wouldn't want to let the affair drag on forever I'm sure.

As for the receipts, just keep some bank receipts, you'll be asked for them occasionally when buying things in rupees such as buying a train ticket or booking a hotel room. They don't take up a lot of space and you don't need to keep each and every one of them, but when the tax thing comes up it would be handy if you can reasonably prove that you've been living off your own money I guess. I'm not sure how this works with ATM's but presumably the ATM receipts would suffice. Anyone?

Kanehanahou

Hmm, my tourist visa was for 180 days and I was asked for nothing when I left.

GoanCanuck

ATM receipts are accepted as proof. Generally speaking the authorities do not bother too much about foreign nationals who have been staying for many months unless there is a good reason.

cyberhippie

I heard that they had done away with this tax clearance thing. Though hearing this stuff doesn't mean that it is so. However I haven't done it for the last 2 years, without any hitches on departure!
It's difficult to find out official policy on things like this in India, where do you go who do you ask???
The old system was hilarious, you went to the tax department clutching a bunch of encashment certificates.
Soon you found the right department a small office with about 8 desks.
When you were called to the first desk the first thing that happend was the lady tuts tuts and gives you back all the encashment certificates bar one "one is enough" she informed me rather brusquely.
I then had to visit 2 other desks for clearance, my paperwork followed me from desk to desk carried by the "messenger wallah" a middle aged man whos job was to carry the paperwork desk to desk a maximum distance of 10 meters (usually it was 2 meters!) This he did with great dignity and aplomb!!
After about 20 minutes the paperwork was done and I left with my valuable clearance certificate.
Including travel time and waiting around, this took most of a morning to sort out so you can imagine my consternation when no body wanted to see it on departure!!!

pooch

Sticky, they don't ask you for it when you depart India but if you do want to get one, head to your nearest court and you will find middlemen (usually typists, stamp vendors and the like) who get things notarized for you and they will type out an affidavit (they have the format) for you and get the same notarized, take that to the income tax office and you're through.