Income Tax Clearance Certificate before registration/ transfer of the vehicles. - Income Tax - 946/CBDT

INSTRUCTION NO. 946/CBDT Dated : April 22, 1976 Recently the Government of India had consulted all the State Governments for examining the feasibility of insisting on production of Income Tax Clearance Certificate before registration/transfer of the vehicles is effected by the State Transport Authorities. Though all the State Governments have promised to give co-operation to the Income-tax Department in tackling tax evasion in this regard by furnishing the list of new registrations/transfers of vehicles effected during a particular period for utilisation in the Income-tax assessment, they have expressed their inability to insist on production of Income tax Clearance Certificate due to legal difficulties. 2. In view of the above, instructions may issue for carrying out internal survey operations more vigorously in this regard by obtaining periodically the list of new registrations/transfer of vehicles effected during a particular period and utilise it properly and expeditiously for purposes of the Income-tax assessments.