Tax Clearance Delays Noted; Officers Urged to Follow Section 230A Guidelines, Process Applications Within a Week.

The Directorate of Inspection (Investigation) found that instructions regarding the processing of tax clearance certificate applications under Section 230A of the Income Tax Act, 1961, are not being properly followed. There are delays and unnecessary objections in processing these applications, except in the Madras charge. The Board emphasizes that existing liabilities include both ascertained and accruing tax liabilities, which must be addressed before issuing a certificate. Officers are instructed to process applications within a week, safeguard revenue interests, and notify relevant Income-tax Officers, referring to Board's instructions No. 175 and No. 481 for guidance.

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