ITR Filing: After outrage on social media over the Budget 2024 proposal to make Tax Clearance Certificate mandatory for going abroad, the government on Sunday clarified that the proposed amendment is not for everyone.
ITR Filing: For the last few days, the news of making Tax Clearance Certificate mandatory for going abroad is spreading on social media. There is anger on social media over this proposal of the Budget (Budget 2024). After this, the government itself clarified on Sunday that the proposed amendment is not for everyone. The government said that this proposal is only for those accused of financial irregularities or big defaulters and only they will have to take such approval.
The Finance Ministry has proposed to add a reference to the Black Money Act, 2015 in the Finance Bill, 2024 to the list of Acts under which any person has to clear his liabilities to obtain a tax paid certificate. The ministry said in a statement, “The proposed amendment does not require all residents to obtain a tax paid certificate.”
According to section 230 of the Income Tax Act, 1961, every person is not required to obtain a tax paid certificate. This is necessary only in the case of some persons. The ministry said that the Income Tax Department has clarified through a notification of 2004 that a tax paid certificate is required only for persons residing in India under certain circumstances.
In cases where a person is involved in serious financial irregularities and his presence is necessary in the investigation of cases under the Income Tax Act or Wealth Tax Act and it is possible that a tax demand will be raised against him, a tax paid certificate will have to be taken. Apart from this, where a person has direct tax dues of more than Rs 10 lakh, which has not been stopped by any authority, these proposals will also be applicable there.
