Case 1 is intended to facilitate the taxation of income that foreigners may earn during their stay in India. Case 2 is intended to ensure that residents do not leave India without compliance. However, the mechanism for licensing such licensing has deteriorated over time. This often leads to complaints of harassment and unethical conduct. In fact, foreign tour guides advise foreign tourists to budget a certain amount for such permission. This is a deterrent for foreign tourists to travel and stay in India longer. It has also been heard from interagency officials and officials in the department that they have never encountered any instances where such permits help with tax refunds.
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