Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

The existing provisions of sub-section (1A) of section 230 of Act specify that, inter-alia, no person who is domiciled in India, shall leave India, unless he obtains a certificate from the income-tax authorities stating that he has no liabilities under Income-tax Act, 1961, or the Wealth-tax Act, 1957 (27 of 1957), or the Gift-tax Act, 1958 (18 of 1958), or the Expenditure-tax Act, 1987 (35 of 1987), or he makes satisfactory arrangements for the payment of all or any of such taxes which are or may become payable by that person. Such certificate is required to be obtained where circumstances exist which, in the opinion of an income-tax authority render it necessary for such person to obtain the same.

2. The proviso to the said sub-section further mandates that no income-tax authority shall make it necessary for any person who is domiciled in India to obtain the said certificate unless he records the reasons therefor and obtains the prior approval of the Principal Chief Commissioner or Chief Commissioner of Income-tax.

3. In this regard, it was observed that most of the liabilities arising under the Acts administered by the Central Board of Direct Taxes (CBDT) have been covered in the sub-section (1A) of section 230 of the Act, for the purpose of obtaining a tax clearance certificate, except the liabilities arising under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (22 of 2015).

4. In view of the same, it is proposed to insert the reference of liabilities under Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 in the sub-section (1A) of the section 230 of the Act, for the purposes of obtaining a tax clearance certificate.

5. This amendment will take effect from the 1st day of October, 2024.

[Clause 71]

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Full Text:

Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

Tax clearance certificate requirement now covers Black Money Act liabilities, affecting exit permissions from India. The amendment adds liabilities under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 to the list of tax statutes whose outstanding liabilities may render it necessary for a person domiciled in India to obtain a tax clearance certificate before leaving the country, while preserving the proviso requiring recorded reasons and prior approval of the Principal Chief Commissioner or Chief Commissioner; the amendment takes effect from 1 October 2024.