The Budget has tightened the criteria for acquiring clearance certificates, which are required to leave India. Starting October 1, everybody living in India will be required to provide a clearance certificate proving their compliance with the Black Money Act.
Section 230 of the Income-tax Act requires anybody residing in India to get a certificate from the tax authorities before leaving the country. This certificate shows that the individual has paid all owing taxes or has made arrangements to pay them.
This obligation applies to taxes under the Income-tax (I-T) Act, as well as the old Wealth Tax, Gift Tax, and Expenditure Tax Acts.
The 2024 Budget proposes abolishing the ₹10 lakh penalty under sections 42 and 43 of the Black Money Act for not declaring foreign assets (except real estate) with a total worth of less than ₹20 lakh. This modification will go effective on October 1, 2024.
