INCOME TAX

Abolition of the requirement of obtaining Income-tax Clearance Certificate (ITCC) by persons entering into commercial contracts

Circular No. 2/2004, dated 10-2-2004

1. A decision was taken by the Board in January, 2003 regarding the requirement of obtaining Income-tax Clearance Certificates by various persons. It was decided that with effect from the 1st January, 2003, no Income-tax Clearance Certificate shall be required to be furnished by any person while filing a tender for the purpose of obtaining commercial contracts. A Press Release to this effect was also issued on January 20, 2003.

2. The Board, however, continued to receive several references from various quarters seeking clarification with respect to furnishing of Income-tax Clearance Certificate at the time of bidding for contracts and in other situations.

3. It is hereby clarified that contractors are now not required to obtained Income-tax Clearance Certificate from the Income-tax Department and there is no need to furnish such certificate while submitting tenders or obtaining commercial contracts.

4. Further, it is also clarified that Income-tax Clearance Certificate shall also not be required for any other purposes such as registration or renewal of registration of contractors, renewal of import/export licences, renewal of post licences and renewal of shipping licences.

5. However, all such persons shall quote their Permanent Account Number in their tender or other relevant documents.

6. It is reiterated that the Income-tax Department will not issue any Income-tax Clearance Certificates for any of the above-mentioned or similar purposes.

7. All Circulars issued earlier in this regard shall stand withdrawn.