Not all require a tax clearance certificate to go abroad: govt.
- After outrage over a Union Budget proposal making it mandatory to get tax clearance certificates for going abroad, the government on Sunday said only those accused of financial irregularities or having huge tax arrears needed them.
Highlights:
- “The proposed amendment does not require all the residents to obtain the tax clearance certificate,” the Finance Ministry said in a statement.
- The Ministry, in the Finance Bill, 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 certificate.
- Under Section 230 of the Income Tax Act, 1961, not all are required to obtain a tax clearance certificate. The Ministry said the Income Tax Department, through a 2004 notification, had specified that the certificate may be required only in case of serious financial irregularities and investigation of cases under the Income Tax or Wealth Tax Act requiring a person’s presence and leading to the likely raising of a tax demand, or if a person has direct-tax arrears exceeding ₹10 lakh, which have not been stayed.
- The department said a person could be asked to get the certificate only after recording the reasons and approval from the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax.
Prelims Takeaway:
- IT Act
- Economic Offenders Act 2018