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<h1>Contractors Penalized for Tax Evasion Denied Income-Tax Clearance for 3 Years; New Application Form Effective June 1981.</h1> The circular outlines guidelines for denying income-tax clearance certificates to contractors penalized or convicted for tax evasion. Contractors penalized under specific sections of the Income-tax Act, Wealth-tax Act, or Indian Penal Code will be denied these certificates for three years from the penalty or conviction date. The prohibition applies even if the contractor appeals, effective from the appeal's outcome date. The application form for the clearance certificate has been amended to include relevant information about penalties and convictions. The revised proforma must be used for applications from June 1, 1981, ensuring compliance across all relevant government departments and agencies.