MUMBAI: The Budget has tightened the provisions relating to
clearance certificates
that are required when departing from India. From October 1, a clearance certificate giving a clean chit under the
Black Money Act
will be required for persons domiciled in India, who are leaving India.
At present, under section 230 of the Income-tax (I-T) Act, a person domiciled in India cannot leave without obtaining a certificate from the
tax authorities
that they have no outstanding
tax liabilities
or have made satisfactory arrangements to pay such dues.
This applies to taxes under the I-T Act, the erstwhile Wealth tax and Gift tax Act and also the Expenditure Tax Act. Such a certificate is required to be obtained where circumstances exist which, in the opinion of an income-tax authority, render it necessary for such a person to obtain the same.
Tax experts are of the view that a
notification
or the rules that will follow, will better explain the requirements.
