These new provisions will be effective October 1, 2024 and it highlights that under the Income Tax Act old provisions may remain the same for the tax payers who are planning to leave the county. 

The Union Budget 2024 has released a new amendment that people who are planning to move abroad from India have to clear all tax dues mandated as clearance certificates. The Finance Minister, Nirmala Sitharaman, clarified that the new amendment is not applicable for every individual in the country who are planning to relocate. It is specified that individuals who are involved in financial fraud and irregularities or those who withheld tax remittance must secure the certificate to move to other country. People under this category is advised to hold a proper clearance certificate for the requirements.

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The revised mandate says that “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 the Income-tax Act, or the Wealth-tax Act, 1957, or the Gift-tax Act, 1958, or the Expenditure-tax Act, 1987.” It has to be noted that a person with tax liability cant be moved to any other country from India without a clearance certificate.

The person who possesses direct tax arrears more than 10 lakh that wasn’t stayed by any authorities should incur a clearance certificate if they wish to move to some other country from India as the certificate is directly issued by the Income Tax, proposing that the Indian citizen has no outstanding liabilities.

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According to the government notification, the reason for a tax clearance certificate should be documented and sent to the Principal Chief Commissioner of Income-tax or the Chief Commissioner of Income-tax for further approval.

These new provisions will be effective October 1, 2024, and it highlights that under the Income Tax   Act old provisions may remain the same for the tax payers who are planning to leave the county. it is stated that under the e-tax Act or the Wealth-tax Act, if there is a tax demand is raised against the individual, it is mandatory to obtain a clearance tax certificate.