In the last few years, the number of people leaving Indian citizenship and settling in other countries has increased. Among them, there are some people whose image is questionable. They take the path of leaving 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, then he will first have to finish his tax liability in India. Also, 'clearance' has to be taken from the Income Tax Department.
This was confusing to many people. They could not understand whether this rule was for all those going abroad or for some people. However, the Central Board of Direct Taxes (CBDT) has clarified many things.
What did CBDT say?
CBDT recently tried to clear the confusion about the Income Tax Clearance Certificate (ITCC). He 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). In this, an attempt has been made to make tax liability more clear. But, this does not mean that ITCC is necessary for all citizens leaving the country.
For whom ITCC is necessary
ITCC was implemented in 2003. At that time it was necessary to get this clearance only for some people, mostly in rare cases. The Finance Ministry has also issued a clarification on 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 stopped by any authority.
In these cases also, ITCC can be demanded only after obtaining approval from senior officials.
