Black Money Act: Through the clearance certificate it is clear that the person concerned does not have any tax or liability pending with the department issuing the certificate. Now it is being made mandatory before going on a foreign trip.
What is Clearance Certificate: Now the rules have become strict for people leaving the country. From October 1, people living in India will now need a Clearance Certificate under the Black Money Act to leave the country. This certificate will show that they do not have any kind of tax dues. Currently, under Section 230 of the Income Tax (IT), no person living in the country will be able to go abroad without a certificate from the tax authorities that he does not have any kind of outstanding tax liability. Or he has made satisfactory arrangements to pay such dues.
Information will be revealed in the notification
This rule also applies to taxes levied under the Income Tax (IT) Act, the previously applicable Wealth-Property Tax and Gift Tax Act and the Expenditure Tax Act. This certificate is necessary in such cases where in the opinion of the Income Tax Authority, it becomes necessary for the person to obtain a certificate. Tax experts believe that the requirements will be explained better through the upcoming notifications or rules.
What is a clearance certificate?
A clearance certificate is a document issued by an authorized authority. It shows that a person or organization has fulfilled the necessary conditions or responsibilities. There are many types of clearance certificates, which vary according to the situation. For example, Tax Clearance Certificate and Police Clearance Certificate are different.
Tax Clearance Certificate
Tax Clearance Certificate is issued by the Income Tax Department. It shows that a person or business has paid all its taxes or has made arrangements to pay the outstanding amount. This certificate is required in many cases, such as to take a loan, to bid on government contracts. Now it is being said that the rule of having such clearance certificate before leaving the country will be implemented from 1st October.
Police Clearance Certificate
Police Clearance Certificate is issued by the Police Department. It confirms that there is no criminal case registered against a person or any criminal case is still going on. This certificate may be required while going abroad, applying for a job or adopting a child.
