Due Diligence & Legal
Section 281 Tax Clearance
An income-tax NOC confirming no pending dues that could void the transfer against the tax department — sellers should obtain this proactively to avoid closing delays.
Seller Example
Promoter of a Ludhiana hosiery unit applies for Section 281 clearance from the jurisdictional Assessing Officer six weeks before the planned closing date on a ₹15 Cr slump sale, avoiding a last-minute delay that would otherwise have given the buyer leverage to demand a price reduction for the uncertainty.