Had you ever hear that an income tax certificate can be used in foreign country? Obviously you would not be aware from this but this is fact that if you are travelling to abroad, you may need to verified your income tax certificate ( ITC ).
Let’s understand what exactly is Income tax certificate? and why do you need this to travel abroad?
What is an Income Tax Certificate?
An income tax certificate is an official document issued by the responsible tax authorities in India. It outlines the total taxes paid by an individual or an organisation in a financial year.
The tax authorities provide the certificate, showing taxes paid for any financial year. It can be used to verification by concerned authorities to prevent fraud or as required under international law. When dealing on a global scale, either personally or organizationally, knowing how it works may prove vital.
It contains personal details such as the PAN number, name, address, and a unique identification number often referred to as an acknowledgement number. You can use this unique number to track everything income tax-related.
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Why Do You Need an Income Tax Certificate?
When it comes to the requirements of an income tax certificate, it can be ask by the countries where the applicant is going. Below are the some reasons that why income tax certificate is needed:
Visa Processing-
Few countries insist on an income tax certificate as part of the visa processing document, especially for work or residence visas. Attestation makes sure the document issued is genuine to the foreign authorities.
Legal and Financial Transactions-
Certain legal processes or financial transactions, such as the opening of a bank account, the purchase of a particular type of property, or the application for a loan in another country, may require attested income tax certificates.
Proof of Income-
Income tax certificates are to be presented accordingly for proof of income or financial stability when investing or moving to foreign country.
Compliance with Local Laws-
Tax certificates ensure compliance with legal requirements; some countries have strict requirements regarding documentation that foreign nationals must submit.
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What is Form 30C in Income Tax & Who are Required to fill this?
Form 30C is a declaration form submitted to the tax authorities in India. It is required to be submitted by the Indian candidates when travelling abroad for reasons other than permanent relocation. The main purpose of the form 30C is to inform the authorities of their travel plans. It includes details such as the duration of the trip, its purpose, etc.
Form 30C is closely related to the income tax clearance certificate. Indian candidates generally do not need to obtain the ITCC if they are travelling abroad for any reasons other than permanent relocation. However, they still need to fill the Form 30C and submit their PAN information.
In some cases, Indian residents travelling abroad for reasons other than permanent relocation may need to obtain an ITCC under the following conditions;
- Financial Irregularities – If the authorities have reasons to believe that the concerned person is involved in financial and tax irregularities then they might need the candidates to obtain an ITCC.
- Tax Arrears – If an individual has tax arrears exceeding the amount of INR 10 lakhs against him.
Download the Form 30C:-
What is the Processing Time to Get Income Tax Cartificate?
The time required for issuing the certificate varies according to the complexity of the case and the diligence of the local tax office. However, on average it takes a few weeks to issue a tax certificate so the travellers are advised to apply for ITC well in advance to avoid last-minute hassles.
Factors Influencing Processing Time:
Completeness of the Form –
Ensuring that all sections of the form are correctly filled out and that all supporting documents are provided can speed up the process.
The volume of applications –
Work pressure at the tax office or processing centre may affect the speed of scrutinising and processing the form.
Verification Requirements –
The process automatically becomes longer if the authorities need additional documents for verification.
Income Tax Documents Required for Foreign Travel
An income tax certificate is types of documents containing a detailed breakdown of an individual’s income and the taxes paid by them during a particular financial year. Following are the documents that required while travel to foreign;
Detailed ITR Form –
A detailed ITR form, breaks down gross income, deductions that can be applied, and the resulting taxable income in very fine detail, thereby going a long way in bringing out the financial status of either an individual or a business entity very clearly.
Acknowledgement Number of ITR –
This is a unique number that links one’s certificate with the filed income tax return, adding to its authenticity.
ITR Computation –
Income tax computation is basically a systematic presentation of your taxable income, gains and etc. It contains all particulars of the income tax payable, the amount paid, and refunds due, exemption, tax liabilities thereby ensuring transparency in all transactions connected with taxation.
PAN Card –
While you are filling your ITR, you will need your PAN Number, it is necessary that your PAN number should be correct. It is also mandatory document for foreign travel.
Steps to Download the Income Tax Certificate/ Income Tax Documents
The steps involved in the procedure of downloading an income tax certificate are pretty simple and easy to access. One can download the certificate from the comfort of their home using the following steps;
- Log on to the website of the Income Tax Department of India with your credentials.
- Click the “View Returns/Forms” option to view your e-filed returns.
- Now, click the acknowledgement number to download the income tax certificate. You can even e-verify your income tax account. To do e-verification, you just need to click the option which says, ‘Click here to view your returns pending for e-verification’.
- At the end of the e-verification, click ITR-V/Acknowledgement to begin the download. This file will download as a locked PDF that requires a standard password to be accessed.
- Your password is your Permanent Account Number followed by your date of birth.
What is an Income Tax Certificate Attestation?
An income tax certificate attestation is the process through which the authenticity and legitimacy of the certificate are proved making it suitable for use overseas. Tax authorities usually issue it to underline the amount of tax an individual or an organisation has paid in the financial year.
Attestation of an income tax certificate is especially important if used in a foreign country for purposes such as education, employment, business, financial transactions and legal proceedings.
Income tax certificate attestation usually involves getting the certificate authenticated by relevant authorities to ensure its genuineness and make it legally acceptable in a foreign country. Attestation of the certificate also protects against fraud of any kind.
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Countries that Require Income Tax Certificate Attestation
Attested income tax certificates are usually required to be presented for processes such as processing visa applications, resident permits or other similar financial and bureaucratic functions.
The need for attestation of a certificate depends on the reason for travel, it also depends on the type of visa one is applying for. Listed below are some of the important countries requiring income tax certificate attestation;
Middle Eastern Countries-
- UAE – Attestation of the income tax certificate is required on a case-to-case basis for work visas, residence permits, and business transactions.
- Saudi Arabia – As is the case in the UAE, authentication may be required for visa applications and many other business purposes.
Gulf Cooperation Council (GCC) Countries-
Attestation of income tax certificates is an essential requirement for visa applications and other financial and business transactions in the GCC countries such as;
- Kuwait
- Oman
- Bahrain
- Qatar
Western Countries-
- Canada – Although not universally mandated, certain visa categories may request proof of income accompanied by verified documents.
- USA – Attestation may be required to get United States visas or as proof of financial stability.
Europe-
Some European countries may require attested income tax certificates to process certain visas and residency permits. It is required to prove the financial stability and tax compliance of the applicants.
- Germany
- France
- United Kingdom
The countries and the processes mentioned above are just some of the important ones to remember. However, there are many more countries and bureaucratic princesses that will require attested income tax certificates.
How Can We Help?
We at Superb Enterprises have a dedicated team of professionals who are always ready and available to help you get your documents ready for use overseas, including income tax certificate attestation.
An important point to note is that income tax certificate attestation is of two types – Personal and Commercial. The type of attestation depends on the applying entity, if an individual needs to get their certificate attested then it falls under personal documents, whereas if an organisation is looking for IT certificate attestation then it will be categorised under commercial documents attestation.
Whatever the case may be, Superb Enterprises is ready and available to provide hassle-free attestation services to help make your journey a little less complicated.
Frequently Asked Questions
- Is it compulsory to submit the Form 30C?
Indian citizens travelling abroad for reasons other than settling permanently need to fill the Form 30C and submit their PAN card details.
- How to apply for an Income Tax Certificate?
There is no specific application process for income tax certificates. You can access your tax certificate by downloading it from the Income Tax Department of India’s online portal.
- Why is income tax certificate attestation needed?
The certificate needs an attestation stamp if it is to be used abroad. Attestation ensures the legitimacy and authenticity of the certificate making it suitable for use overseas.
- Are income certificates and income tax certificates the same?
No, an income certificate and an income tax certificate are different. An income certificate is a paper provided by the government that verifies a person or a family member’s total amount of earnings accrued per year. An income tax certificate is an official document containing a detailed breakdown of an individual’s income and the taxes paid by them during a particular financial year.