In a significant update, the 2024 Budget has tightened regulations concerning Indians leaving the country, making it mandatory for them to obtain a tax clearance certificate starting October 1. This certificate, required under section 230 of the Income-tax Act, confirms that individuals have no outstanding tax dues or have made arrangements to settle them.
The requirement encompasses liabilities under the Income-tax Act, as well as past statutes like the Wealth Tax, Gift Tax, and Expenditure Tax Acts. The move aims to ensure compliance and prevent tax evasion by residents before they depart India.
Furthermore, the Budget proposed a revision effective from October 1, 2024, eliminating the ₹10 lakh penalty under sections 42 and 43 of the Black Money Act. This amendment applies to the non-reporting of foreign assets, excluding real estate, valued under ₹20 lakh. The exemption extends to inaccuracies or omissions in reporting such assets, providing relief to taxpayers.
Tax experts anticipate further clarifications through notifications or future regulations to streamline these new requirements, as reported by the Times of India and Economic Times. The amendments underscore the government’s efforts to bolster tax transparency and compliance among residents, ensuring fair enforcement of fiscal laws.
