New Delhi, July 28 (SocialNews.XYZ) The Centre on Sunday clarified that it is not mandatory for every citizen to get a tax clearance certificate to fly abroad.
After some social media posts claimed that such a certificate is now required to go abroad, the Finance Ministry clarified it is only for those accused of financial irregularities or having substantial tax arrears.
In the Finance Bill 2024, the government has proposed to add the reference of the Black Money Act, 2015 to the list of Acts, under which any person should clear his liabilities to obtain the tax clearance certificate.
The Finance Ministry said, in a statement, that the proposed amendment does not require all the residents to obtain the tax clearance certificate.
As per Section 230 of the Income Tax Act, 1961, every person is not required to obtain a tax clearance certificate. Only in the case of certain persons, in respect of whom circumstances exist, which make it necessary to obtain a tax clearance certificate will be required to obtain such a certificate.
A 2004 notification by the Income Tax (I-T) department had specified that the tax clearance certificate is only required by those domiciled in India, "only in certain circumstances".
If a person is suspected of serious financial misconduct and their presence is crucial for investigations under the Income Tax Act or the Wealth Tax Act, and if it's likely that a tax demand will be raised against them, they need to obtain a tax clearance certificate.
Source: IANS
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