After outrage on social media, the government clarified that not everyone needs to obtain a tax clearance certificate when going abroad

Tax Clearance Certificate: Due to massive outrage and uproar on social media, the central government has been forced to give clarification on a proposal in the budget. Regarding the misleading news that people living in India are required to pay tax and obtain a tax clearance certificate before traveling abroad, the government has clarified that under Section 230 of the Income Tax Act, 1961, it is not mandatory for every person to obtain a tax clearance certificate. Let us tell you that when Finance Minister Nirmala Sitharaman presented the budget on July 23, she had proposed to include a reference to the Black Money Tax, 2015 for obtaining a tax clearance certificate.

After this, all kinds of news came out about it and people also expressed their displeasure about it. Due to which today the central government has given clarification regarding the tax clearance certificate. Regarding the tax clearance certificate, the government today said that according to section 230 of the Income Tax Act, 1961, it is not necessary for every person to obtain a tax clearance certificate. It is only for those who are involved in any serious financial irregularity and whose presence is required in the investigation of the case under the Income Tax Act and the Property Tax Act.

Tax clearance is required only for these people

Tax clearance is required under certain criteria. CBDT order No. 1/2004, dated 5th February 2004, persons who are seriously involved in financial irregularities and have direct tax dues of Rs. Tax clearance certificate is required for those whose income is more than 10 lakhs and the balance amount has not been withheld by any authority. Apart from this, it is very important to obtain this certificate for those involved in investigations under Income Tax Act, Wealth Tax Act.

Issuing a tax clearance certificate is not an arbitrary process. It requires valid reasons and prior permission of the Chief Commissioner of Income Tax and Principal Chief Commissioner. This certificate assures the person that he does not owe anything under various tax laws.