New Delhi:
The Central Board of Direct Taxes (CBDT) has addressed the confusion surrounding the need for an Income Tax Clearance Certificate (ITCC) when traveling abroad.
Contrary to what some reports suggest, it is not mandatory for all Indian citizens to obtain this certificate before leaving the country.
The requirement for an ITCC was established through the Finance Act of 2003, which outlines specific circumstances when this certificate is necessary.
The recent amendment to the law merely includes references to the Black Money (Undisclosed Foreign Income and Assets) and Tax Act, 2015.
This ensures that liabilities under this Act are treated the same as those under the Income Tax Act.
The CBDT clarified that the ITCC is required only in special cases.
These cases involve individuals facing serious financial irregularities or those with outstanding tax dues of Rs 10 lakh or more under direct taxes.
This regulation has been in place since 2003, and the recent changes do not alter it.
The CBDT also mentioned that individuals must provide valid reasons for requesting an Income Tax Clearance Certificate.
The approval for this certificate will be given by the Principal Chief Commissioner of Income Tax or the Chief Commissioner of Income Tax.
In summary, the ITCC is not a necessity for most Indians traveling abroad, but those involved in significant financial issues may need to obtain it.
With the income tax return (ITR) filing season now in its penalty phase, those who missed the July 31 deadline are required to pay fines.
The Income Tax Department reported that timely compliance has led to a record number of ITRs filed for the Assessment Year (AY) 2024-25, with over 7.28 crore returns filed, a 7.5% increase from the previous year.
The Income Tax Department has updated its website to improve user experience as millions of taxpayers file their returns.
There was some confusion recently suggesting that all Indians, including those traveling abroad, need an Income Tax Clearance Certificate (ITCC).
This claim implied that the ITCC was mandatory for international travel.
The Central Board of Direct Taxes (CBDT) has clarified that this is not the case.
They have issued a statement to correct the misinformation and confirm that the ITCC is not required for all Indian travelers.
The confusion arose from earlier statements, but the CBDT has now set the record straight regarding the requirements for traveling abroad.
Welcome to mysandesh.in, your one-stop destination for the latest updates and insights on business, finance, telecom, technology, and more. We are dedicated to providing you with timely and accurate news from around the globe, keeping you informed about the rapidly evolving world of business and technology.
Copyright © 2023 | MySandesh.In | All Rights Reserved
