Tax clearance certificate to fly abroad not mandatory for all, government clarifies

In reference to some misleading reports being circulated that a mandatory tax clearance is required for individuals before flying abroad, the government has clarified that under section 230 of the Income-tax Act, 1961, every person is not required to obtain a tax clearance certificate.

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In the Budget 2024-25, tabled on July 23 by Finance Minister Nirmala Sitharaman, it has been proposed to include the reference to the Black Money Act, 2015 to obtain a tax clearance certificate.

Such a certificate is required to be issued by the income-tax authority stating that such person has no liabilities under the Incometax Act, or the Wealth-tax Act, 1957, or the Gift-tax Act, 1958, or the Expenditure-tax Act, 1987.