North News
New Delhi, July 29
The government has clarified that the proposed amendment in the Budget does not apply to everyone. According to media reports, only those accused of financial irregularities or having significant tax arrears will need to obtain a tax clearance certificate.
According to DD News, the Central Board of Direct Taxes (CBDT) explained that under section 230 of the Income-tax Act, 1961, not everyone is required to get a tax clearance certificate. This clarification comes in response to concerns following the presentation of the Budget 2024-25 by Finance Minister Nirmala Sitharaman on July 23, which proposed including the Black Money Act, 2015 in the list of Acts for which liabilities must be cleared to obtain a tax clearance certificate. The news outlet report further said that the CBDT emphasized that the proposed amendment is not a blanket requirement for all residents. It only applies to specific situations, such as cases involving individuals with serious financial irregularities who are needed for investigation, and those with outstanding direct tax arrears exceeding Rs 10 lakh that have not been stayed by any authority.
The board also noted that obtaining a tax clearance certificate requires approval from high-ranking tax officials, including the Principal Chief Commissioner or Chief Commissioner of Income-tax. This clarification aims to address concerns and reassure the general public that routine international travel will not be affected by the new tax clearance requirements. The government’s decision to include the Black Money Act, 2015 in the list is part of its ongoing efforts to combat tax evasion and ensure compliance with tax laws.
