 |
|
The Indian government has implemented new regulations regarding tax clearance for residents traveling overseas. This measure, introduced as part of the budget, aims to curb tax evasion and ensure compliance with financial regulations. Effective from October 1st, all Indian residents departing the country are now required to obtain a clearance certificate under the Black Money Act. This replaces the previously mandated certificate under Section 230 of the Income-tax Act.
The clarification from the finance ministry highlights that the tax clearance requirement is not applicable to all outbound travelers. It is specifically targeted at individuals who are facing investigations or have significant tax arrears exceeding Rs. 10 lakh. The tax clearance certificate serves as a verification mechanism for those involved in financial irregularities or potential tax evasion. The issuance of this certificate is entrusted to senior officials responsible for managing claims and probes related to Income Tax.
In another development related to tax compliance, the Central Bureau of Investigation (CBI) has filed a First Information Report (FIR) against a senior tax assistant, Qamar Aulam Khan, for allegedly accepting a bribe of Rs. 15,000 from Anand Ramasamy. The bribery is suspected to be connected to discrepancies in Income Tax Returns. The CBI initiated the investigation based on prima facie evidence of corruption, securing permission from the Telangana government to proceed despite the state's initial prohibition on CBI investigations.
Source: Tax Clearance Certificate: Tax Clearance Certificate Requirements for Overseas Travel