Tax clearance certificates regulate departures by non-domiciled workers and specified domiciled persons, with personal liability imposed on non-compliant carriers.

Section 420 establishes a tax-clearance framework for departure from India. Subject to notified exceptions, non-domiciled persons entering for business, profession or employment and deriving Indian-source income require an employer or income-payer undertaking before obtaining a no-objection certificate. Domiciled persons must furnish prescribed travel and identification particulars, while tax clearance certificates may be required only with recorded reasons and prior approval. Ship or aircraft owners and charterers who permit departure without the required certificate may become personally liable, deemed assessees in default, and subject to tax recovery.

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