Issue of clearance certificates u/s 230A. - Income Tax - 1728/CBDT

INSTRUCTION NO. 1728/CBDT Dated: September 4, 1986 It has been brought to the notice of the Board that Members of the Public are experiencing considerable hardships and inconvenience owing to the delay in issue of clearance certificates by ITOs u/s 230A of the I.T.Act. 2. Section 230A prohibits registration of a document porporting to transfer, assign, limit or extinguish the right, title or interest of any person to or in any property valued at more than fifty thousand rupees unless the Income-tax officer concerned certifies that such person has either paid or made satisfactory provision for payment of all existing liabilities under the various direct taxes or that the registration of the document will not prejudicially affect the recovery of any existing liability. Realising the need for issuing such certificates expeditiously, the Board had by Instruction No. 175 [F.No. 358/5/70-IT(WT)] dated 22-5-1970 impressed on the officers that in all cases where applications for tax clearance certificates had been received, suitable action should be taken within a week of the receipt thereof. It is a matter of concern that the Board continue to receive complaints of delay in issue of clearance certificates u/s 230A, notwithstanding the aforesaid instruction. On further consideration of the matter it has now been decided by the Board that certificates under 230A should be issued positively within 21 days of the receipt of the application. It will be the responsibility of the Commissioner to ensure that the certificates u/s 230A are issued in all cases within the time now prescribed. Any further complaint of delay in this regard will be taken serious note of by the Board. These instruction may please be brought to the notice of all the officers in your charge.