A big announcement has been made in the Union Budget for people leaving India . The government has made it mandatory for such people to have a clearance certificate related to black money.
This means that if a person wants to go to another country, he will have to obtain this certificate before leaving the country. This provision has created a lot of confusion among rich Indians. They want to know if a person goes abroad for holidays or work, will he have to get this certificate?
What changes has the government made?
First, it is important to know that tax clearance is already required for non-residents leaving India and certain types of residents. No-liability certificate is mandatory for income tax, wealth tax, expenditure tax and gift tax. Now the government has expanded the scope of this rule. Under this, tax liability under Black Money Rules, 2015 has also been included.
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After this move of the government, any person who has tax liability under the black money rules will not be able to leave the country without clearance from the authorities. However, the rules of section 230 apply differently to residents and non-residents.
Will this also affect people leaving India to settle abroad?
The rule changes announced in the budget will not affect those Indians who are giving up Indian citizenship to take citizenship of another country. According to Indian law, a person who wants to take citizenship of another country is required to surrender his Indian passport. After that, the resident has to apply to the Indian government for a renunciation certificate. After this, the Home Ministry and the local police investigate the background of that person. In this, it is seen whether there is any tax liability or case pending against the person. After that he gets clearance.
What impact will this have on Indian citizens travelling abroad?
It is mandatory for Indians going abroad for holiday or work to file Form 30 with the Income Tax Department. It contains the person’s PAN, the place abroad where the person wants to go and the purpose of the trip. Some people do not fill this form because the authorities in the other country do not ask for this form. But, if the Income Tax Department later comes to know about the person’s foreign trip and feels that there has been tax evasion, then it can take action. Therefore, those who fill Form 30C will not be affected by the change in rules in the budget.
