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Jul 29, 2024
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Tax certificate not mandatory for all travelling abroad: Finance Ministry
The Union finance ministry on Sunday said a tax certificate was mandatory for Indians involved in serious financial irregularities or having substantial tax dues.
The clarification comes amid the stir over new rules that mandate Indians going abroad to obtain a tax-clearance certificate under the Black Money Act before leaving the country.
In the Finance Bill, 2024, it was proposed including the Black Money Act in the list of laws under which residents can clear their tax liabilities.
The ministry said a tax-clearance certificate was necessary only for individuals with significant direct tax arrears exceeding Rs 10 lakh if their case had not been stayed by any authority.
The rule, effective from October 1, has been introduced to combat tax evasion with respect to undisclosed foreign assets.
The ministry said a person could be asked to obtain a tax-clearance certificate only after recording the reasons for it and after taking approval from the principal chief commissioner or chief commissioner of income tax.
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