I have been residing in Oman for the last two decades. Due to the war situation in the Gulf region, I am currently staying in India. However, I intend to return to Oman. Social media reports say that under the new income tax legislation, every non-resident Indian leaving India must obtain an income-tax clearance certificate before departing. Is this true?
—Name withheld on request
The provisions enumerated under the Income Tax Act 1961 and the Income Tax Act 2025 are the same insofar as they deal with the requirement of an income-tax clearance certificate.
Under these provisions, a person who is not domiciled in India and has come to India in connection with business, profession, or employment, and who derives income from a source in India, cannot leave India unless an undertaking is furnished confirming that the applicable taxes payable by such person will be duly paid.
Based on such undertaking, the prescribed authority issues an NOC / tax clearance certificate for departure from India. However, the provision specifically excludes persons who are not domiciled in India and visit India for purposes not connected with business, profession, or employment.
Since you have been residing in Oman for two decades, it may reasonably be assumed that you are not domiciled in India. Further, assuming that your current stay in India due to the war situation is not connected with business, profession, or employment in India, you should not be required to obtain a tax clearance certificate before returning to Oman.
Harshal Bhuta is a partner at P. R. Bhuta & Co. CAs.
