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After social media outrage over a Funds proposal making it necessary to get tax clearance certificates for going overseas, the federal government on Sunday clarified that the proposed modification just isn’t for all, and solely these accused of monetary irregularities or having substantial tax arrears want such clearance.
The Finance Ministry, within the Finance Invoice, 2024, has proposed so as to add the reference of the Black Cash Act, 2015, to the record of Acts, below which any individual ought to clear his liabilities to acquire the tax clearance certificates.
“The proposed modification doesn’t require all of the residents to acquire the tax clearance certificates,” the ministry mentioned in a press release.
As per part 230 of the Revenue-tax Act, 1961, each individual just isn’t required to acquire a tax clearance certificates. Solely within the case of sure individuals, in respect of whom circumstances exist, which make it obligatory to acquire a tax clearance certificates will likely be required to acquire such a certificates.
The Ministry mentioned that the Revenue Tax division by way of a 2004 notification has specified that the tax clearance certificates could also be required to be obtained by individuals domiciled in India solely in sure circumstances.
These embody — the place the individual is concerned in severe monetary irregularities and his presence is important within the investigation of instances below the Revenue-tax Act or the Wealth-tax Act and it’s probably {that a} tax demand will likely be raised in opposition to him, or the place the individual has direct tax arrears exceeding ₹10 lakh excellent in opposition to him, which haven’t been stayed by any authority.
The I-T division mentioned that an individual may be requested to acquire a tax clearance certificates solely after recording the explanations for a similar and after taking approval from the Principal Chief Commissioner of Revenue-tax or Chief Commissioner of Revenue-tax.
Such a certificates is required to be issued by the income-tax authority, stating that such individual has no liabilities below the Revenue-tax Act, or the Wealth-tax Act, 1957, or the Present-tax Act, 1958, or the Expenditure-tax Act, 1987, it added.
