Thursday, August 22, 2024 The Indian government has recently clarified the rules surrounding the requirement for a tax clearance certificate (TCC) for Indian nationals traveling abroad. This announcement comes after widespread misinformation suggested that all Indian citizens would need to obtain a TCC before leaving the country. The Ministry of Finance has issued a statement to address this confusion and to specify under what conditions a TCC is actually required.
On August 20, 2024, the Ministry of Finance, through a Press Information Bureau (PIB) release, clarified the situation regarding the TCC. The Ministry highlighted that there had been significant misinformation, which had led to the belief that every Indian citizen must obtain a TCC before traveling internationally. The Ministry firmly stated that this interpretation is incorrect.
According to the Finance Ministry, only certain individuals need to obtain a TCC, specifically those who fall under particular circumstances as outlined in the existing statutes. The Ministry emphasized that the requirement for a TCC has been in place since 2003 and remains unchanged, even with the recent amendments introduced in the Finance (No. 2) Act, 2024.
The Central Board of Direct Taxes (CBDT) has detailed the specific situations in which an individual might be required to obtain a TCC under Section 230(1A) of the Income-tax Act. These circumstances are limited to: The CBDT also clarified that a person can only be asked to obtain a .