Who needs to get a tax clearance certificate to travel abroad? Check government’s latest clarification
Note that not all Indian nationals are required to obtain an ITCC prior to departing the country, despite what some recent stories claim, stated a Press Information Bureau press release on August 20, 2024.
Tax clearance certificate: What was announced in Budget 2024
Finance Minister Nirmala Sitharaman introduced a significant amendment in the Union Budget 2024 for those planning to relocate from India. According to the Budget 2024 announcement, the new law requires individuals domiciled in India to clear all tax dues and get 'clearing certificates' before departing the country.
FinMin clarification on who needs a tax clearance certificate
However, the finance ministry has clarified that this modification does not require all individuals to obtain a tax clearance certificate.
According to the PIB release dated August 20, 2024, “There appears to be a mis-information about the said amendment emanating from incorrect interpretation of the amendment. It is being erroneously reported that all Indian citizens must obtain income-tax clearance certificate (ITCC) before leaving the country. This position is factually incorrect.”
Adding further, “As per section 230 of the Act, every person is not required to obtain a tax clearance certificate. Only certain persons, in respect of whom circumstances exist which make it necessary to obtain a tax clearance certificate, are required to obtain the said certificate. This position has been in the statute since 2003 and remains unchanged even with the amendments vide Finance (No.
