There was a lot of confusion regarding the Income Tax Clearance Certificate (ITCC). Some people thought that now all people going abroad will have to get a clearance certificate from the Income Tax Department. At the same time, some believed that it is mandatory only for suspicious people who want to settle abroad. The Central Board of Direct Taxes (CBDT) has clarified many things by giving clarification.
In the last few years, the number of people leaving Indian citizenship and settling in other countries has increased. Among them are some people whose image is questionable. They choose to leave the country to avoid tax liability or legal process.
This is the reason why Finance Minister Nirmala Sitharaman announced in Budget 2024 that if any Indian wants to settle abroad, he will first have to finish his tax liability in India. Also, ‘clearance’ has to be taken from the Income Tax Department.This was creating confusion among many people. They were not able to understand whether this rule is for all those who go abroad or for some people. However, the Central Board of Direct Taxes (CBDT) has clarified many things by giving clarification.
What did CBDT say?
Recently, CBDT tried to clear the confusion about Income Tax Clearance Certificate (ITCC). It said, ‘The amendment of section 230 (1A) is related to the Black Money (Undeclared Foreign Income and Assets) and Tax Act, 2015 (Black Money Act). An attempt has been made to make the tax liability more clear. But, this does not mean that ITCC is necessary for all citizens leaving the country.
Also Read-Â Gratuity Rule: After how many years do employed people get gratuity, does the notice period also count? know in detail
For whom is ITCC required
ITCC was implemented in 2003. At that time, it was necessary for only a few people to get this clearance, mostly in rare cases. The Finance Ministry had also issued a clarification in this matter.
If a person is involved in serious financial irregularities and his presence is necessary for investigation.
If he has tax dues of more than Rs 10 lakh, which has not been withheld by any authority.
In these cases also, demand for ITCC can be made only after taking approval from senior officers.
Related Articles:-
Vivo T3 Pro 5G Launched in India, Check Features, Camera Specs, and Price
How can you transfer your home loan? What things should you keep in mind?
