Guarantee to be used in a case where a person did not clear his tax liabilities.

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....ecuted by an employer was circulated. It was also clarified that this form of guarantee was to be used in a case where a person did not clear his tax liabilities before his departure and the tax clearance certificate was to be issued to him on the basis that satisfactory arrangements had been made to meet his current and anticipated tax liabilities. 2. Recently the Board had occasion to consider ....

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.... the guarantor "do hereby unconditionally and irrevocably guarantee due payment on demand. The important words here are "on demand" and as such the Income-tax Officer has to make a demand from the guarantor. The relevant provision which authorises the Income-tax Officer to name such a demand is section 156 of the Income-tax Act, 1961. There fore, the moment a demand is made from the guarantor, he ....