What is a clearance certificate: Now the rules have been made strict for people leaving the country. If you are also leaving India and going to America, Canada, Germany, London or any other country, then know that from October 1, people living in India will need a clearance certificate to leave the country. It is especially important to know why this certificate will be needed now and why it has been made mandatory to show it.
From October 1, people of India will now need a clearance certificate under the Black Money Act when leaving the country. This certificate will show that they do not owe any tax. Currently, under Section 230 of the Income Tax (IT), no person residing in the country can go abroad without a certificate from the tax authorities stating that the person is no longer liable to pay any tax or has made satisfactory arrangements to pay such dues. has put
More details will be revealed when the notification comes.
This rule also applies to tax levied under the Income Tax (IT) Act, Wealth Tax and Gift Tax Act and Expenditure Tax Act. This certificate is required in cases where the Income Tax Authority requires the individual to obtain a certificate. Tax experts believe that the requirements may be clarified more clearly in upcoming notifications or rules.
What is a clearance certificate
A clearance certificate is a document issued by an authorized authority. It shows that a person or organization has fulfilled the required conditions or obligations. There are many types of clearance certificates. Which varies according to the situation. For example, tax clearance certificate and police clearance certificate are different.
Tax Clearance Certificate
This certificate is issued by the Income Tax Department. It shows that a person or company has paid all its taxes or has made arrangements to pay the outstanding amount. This certificate is required in many cases. For example, to take a loan, to bid on government contracts, now from October 1, there is talk of implementing such clearance certificate rules before leaving the country.
Police Clearance Certificate
This certificate is issued by the police department. Which confirms that no criminal case has been registered against a person or any criminal case is pending. This certificate may be required while traveling abroad, applying for a job or adopting a child.