Income Tax Act

Official PDF pages 521–525

SOURCE PDF PAGE 521
( 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 containe d 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

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SOURCE PDF PAGE 522
( 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.
Recovery by suit or under other law not affected.
421.   The several modes of recovery specified in this Part shall not affect in any
way:—
( a )   any other law for the time being in force relating to the recovery of debts
due to Government; or
( b )   the right of the Government to institute a suit for the recovery of the
arrears due from the assessee,
and it shall be lawful for the Assessing Officer or the Government, as the case may
be, to have recourse to any such law or suit, irrespective of the fact that the tax due is
being recovered from the assessee by any mode specified in this Part of the Chapter.
Recovery of tax arrear in respect of non-resident from his assets.
422.   Irrespective of anything contained in section 304(1) or (5), where the person
entitled to the income referred to in section 9(2)   is a non-resident, the tax
chargeable thereon, whether in his name or in the name of his agent who is liable
as a representative assessee—
( a )   may be recovered by deduction under the provisions of Chapter XIX-B;
and
( b )   any arrears of tax may also be recovered as per the provisions of this Act
from any assets of the non-resident which are, or may at any time come,
within India.

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SOURCE PDF PAGE 523
E.—Interest chargeable in certain cases
Interest for defaults in furnishing return of income.
423.   (1) Where the return of income for any tax year is furnished after the due
date or is not furnished, the assessee shall be liable to pay simple interest
as per the following formula:—
I= 1% × A × T
where,—
I =   the interest payable;
A =   the amount of tax on which interest is payable, as specified in
sub-section (2);
T =   number of months comprised in the period commencing on the
date immediately following the starting date and ending on the end
date, both specified in sub-section (2).
(2) For sub-section (1), in respect of the circumstances specified in column B of the
Table below, the starting date shall be the date specified in column C, the ending
date shall be the date as specified in column D and the amount of tax on which
interest is payable is specified in column E:
TABLE
Sl.
No.
Circumstances   Starting date   Ending date   The amount of tax
on which interest is
payable
A   B   C   D   E
1.   Where the return is
furnished under sec -
tion 263(1), (4) or (6)
or in response to a
notice under section
268(1) after the due
date.
Due   date   for
furnishing   the
return of income
under   section
263(1).
Date of fur -
nishing of the
return.
( a )   Where   a   regu -
lar   assessment
is   not   made,
tax on the total
income   as   de -
termined under
section 270(1)as
reduced by tax
paid;
( b )   Where a regular
assessment   is
made, tax on the
total income de -
termined under
regular   assess -
ment as reduced
by tax paid.

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SOURCE PDF PAGE 524
Sl.
No.
Circumstances   Starting date   Ending date   The amount of tax
on which interest is
payable
A   B   C   D   E
2.   Where no return has
been   furnished   un -
der section 263(1), (4)
or (6) or in response
to   a   notice   under
section 268(1).
Due   date   for
furnishing   the
return of income
under   section
263(1).
Date of com -
pletion of the
assessment
under section
271.
Tax on the total income
determined under reg -
ular   assessment   as
reduced by tax paid.
3.   ( a )   Where   return
of   income   is
required   by   a
notice   under
section 280 is -
sued   after   the
determination
of income under
section 270(1)or
after the com -
pletion of an as -
sessment under
section 270(10)
or 271 or 279;
and
( b )   such   return   is
furnished after
the expiry of the
time allowed un -
der such notice.
The last date of
time allowed un -
der such notice.
Date of fur -
nishing   the
return.
Amount by which the
tax on the total income
determined   on   the
basis of such reassess -
ment   or   recomputation
exceeds the tax on the
total   income   deter -
mined   under section
270(1)or on the basis of
the earlier assessment
under section 270(1) or
271 or 279.
4.   ( a )   Where   re-turn
of   income   is
required   by   a
notice   under
section 280 is -
sued   after   the
determination
of income under
section   270(1)
o r   a f t e r   t h e
completion   of
an   assessment
under   section
The last date of
time allowed un -
der such notice.
Date of com -
pletion of the
reassessment
or recompu -
tation under
section 279.
Amount by which the
tax on the total income
determined   on   the
basis of such reassess -
ment   or   recomputation
exceeds the tax on the
total   income   deter -
mined under section
270(1) or on the basis
of the earlier assess -
ment   under   section
270(1) or 271 or 279.

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SOURCE PDF PAGE 525
Sl.
No.
Circumstances   Starting date   Ending date   The amount of tax
on which interest is
payable
A   B   C   D   E
270(10)   or 271
or 279; and
( b )   no return is fur -
nished.
(3) Where as a result of an order under section 287 or 288 or 359 or 363 or 365(10)
or 368 or 377 or 378, the amount of tax on which interest was payable under sub-sec -
tions (1) and (2) has been increased or reduced, the interest shall be increased or
reduced accordingly, and in a case—
( a )   where the interest is increased, the Assessing Officer shall serve on the
assessee a notice of demand in such form as may be prescribed speci -
fying the sum payable, and such notice of demand shall be deemed to
be a notice under section 289 and the provisions of this Act shall apply
accordingly;
( b )   where the interest is reduced, the excess interest paid, if any, shall be
refunded.
(4) For the purposes of this section,—
( a )   tax on total income as determined under section 270(1)shall not include
the additional income-tax, if any, payable under section 267;
( b )   tax on the total income determined under regular assessment shall not
include the additional income-tax payable under section 267;
( c )   interest payable under sub-section (1) shall be reduced by the interest,
if any, paid under section 266 towards the interest chargeable;
( d )   “tax paid” means—
( i )   advance tax, if any, paid;
( ii )   any tax deducted or collected at source;
( iii )   any relief of tax allowed under section 157;
( iv )   any relief of tax allowed under section 159(1) on account of tax
paid in a country outside India;
( v )   any relief of tax allowed under section 159(2) on account of tax paid
in a specified territory outside India referred to in that section;
( vi )   any deduction, from the Indian income-tax payable, allowed under
section 160, on account of tax paid in a country outside India; and
99
[ ( vii )   any tax credit allowed to be set off as per section 206(2)( e ) to ( h ) and
206(3) and (4). ]
99.   Substituted by the Finance Act, 2026, w.e.f.   1-4-2026 . Prior to its substitution, clause ( vii )
read as under :
“( vii )   any tax credit allowed to be set off as per section 206(1)( m ) to ( p )   and 206(2)( e ) to
( h ) . ”