Rules 227 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 420 of the Income-tax Act, 2025 deals with tax clearance for persons leaving India. Rule 227 names the authorities that deal with each limb, rule 228 prescribes the six forms, Forms 154 to 159, and rule 229 requires a person leaving India to produce the certificate to a Customs Officer on request. The Corrigendum G.S.R. 286(E) removed a stray "(1)" from rule 229.
This article is written as per the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026. Later notifications should be checked before you act.
The prescribed authority is the Chief Commissioner of Income-tax or Director-General of Income-tax with jurisdiction over persons not domiciled in India (section 420(1)), the Chief Commissioner with jurisdiction over persons domiciled in India (section 420(3)), and, for an application under section 420(5), the Assessing Officer having jurisdiction. Forms 154 to 159 cover the undertaking, no-objection certificate, information, applications and tax clearance certificate. Under rule 229 as corrected, any person leaving India shall, at the request of any Customs Officer, produce the tax clearance certificate or the exemption certificate for examination.
Anyone leaving India who is unsure which form applies can start with our NRI tax filing team.
What the corrigendum corrected
The Corrigendum to G.S.R. 198(E), published as G.S.R. 286(E), 16 April 2026, carries seventy-six items. Item 2 reads: "at page 1711, in rule 229, omit '(1)'".
| Part of rule 229 | As notified on 20 March 2026 | After the corrigendum |
|---|---|---|
| Opening of the rule | "(1) Any person leaving India shall, at the request of any Customs Officer, produce to him for examination, the tax clearance certificate or the exemption certificate, as the case may be." | "Any person leaving India shall, at the request of any Customs Officer, produce to him for examination, the tax clearance certificate or the exemption certificate, as the case may be." |
The rule had only one paragraph, so the numbering "(1)" had no second sub-rule to match; the corrigendum removes it. Rules 227 and 228 are not touched by any amending notification in hand.
The section behind the rules
All three rules are made for section 420. Our article on sections 420 to 422, tax clearance certificate, other recovery laws and assets of non-residents explains the section. In the rules, the clearance process attaches to departure from India.
If you or a family member is planning to leave India and wants to know which route applies, our NRI tax filing team can help you read the section and these rules together.
Rule 227: the prescribed authority
| Sub-rule | For section | Authority |
|---|---|---|
| (1) | 420(1) | The Chief Commissioner of Income-tax or the Director-General of Income-tax, as the case may be, who has jurisdiction over the persons not domiciled in India, or any other income-tax authority authorised by that officer |
| (2) | 420(3) | The Chief Commissioner of Income-tax having jurisdiction over persons domiciled in India, or any other income-tax authority authorised by him |
| (3) | 420(5) | An application for a certificate is filed with the Assessing Officer who has jurisdiction to assess the person |
Rule 228: the forms
| Sub-rule | Subject | Form |
|---|---|---|
| (1) | Undertaking to the prescribed authority by a person not domiciled in India, from the persons referred to in clause (i) or (ii) of the "longline" of section 420(1) | 154 |
| (2) | No-objection certificate issued by the prescribed authority under section 420(1); valid for the period mentioned in it | 155 |
| (3) | Information to be furnished by a person domiciled in India | 156 |
| (4) | Every application under section 420(4) | 157 |
| (5) | Every application under section 420(5) (the rule says "may be made") | 158 |
| (6) | Tax clearance certificate issued under section 420(5); valid for the period mentioned in it | 159 |
Sub-rule (7) adds that a copy of the undertaking in sub-rule (1) and of the no-objection certificate in sub-rule (2) is forwarded to the Chief Commissioner of Income-tax or Director General of Income-tax, as the case may be, having jurisdiction over the persons referred to in section 420(1). The rules do not print any fee or time limit for these forms.
Rule 229: producing the certificate
Rule 229, headed "Production of certificate under section 420", is a single paragraph: any person leaving India shall, at the request of any Customs Officer, produce to him for examination the tax clearance certificate or the exemption certificate, as the case may be. The rule does not say what an "exemption certificate" is or from where it comes; that is for section 420 to answer.
An example
Meera Nair is domiciled in India and plans to leave the country. She applies in Form 158 to the Assessing Officer who has jurisdiction to assess her (rule 227(3)), and the tax clearance certificate under section 420(5) is issued in Form 159, valid for the period mentioned in it. At the airport a Customs Officer asks to examine it, and under rule 229 she produces the certificate. If her certificate is not valid for the period of travel, the rule itself gives no remedy, so the matter should be settled with the Assessing Officer before she travels.
Need help with an exit clearance?
Delays at departure are costly, and the right form depends on whether you are domiciled in India. Speak to us through our legal consultation page.
Key takeaways
- Three different authorities are prescribed, one for each of sections 420(1), 420(3) and 420(5).
- Forms 154 to 159 cover the undertaking, no-objection certificate, information, applications and tax clearance certificate.
- Forms 155 and 159 are valid for the period mentioned in them.
- Rule 229 now opens without "(1)" by the corrigendum.
Read next
- Sections 420 to 422 of the Act: tax clearance certificate
- Rule 226: Tax Recovery Officer's rectification powers
- Rules 230 and 231: refund claim and immunity application
- Rule 225: notice, modes and safeguards in recovery
- Section 416: other modes of recovery of tax
Disclaimer: Based on the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026, as consulted on 2 October 2026. It explains the words of the rules and forms only; later notifications, the forms and utilities on the e-filing portal, circulars and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.