For people who leave India Union budget A big announcement has been made in. The government has made the clearance certificate related to black money compulsory for such people. This means that if a person wants to go to another country, he will have to get 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 in connection with holidays or going abroad in connection with work? Moneycontrol has tried to remove the confusion regarding this provision.
What change has the government made?
It is important to first know that tax clearance is already necessary for non-resident and certain types of residents. No-bucity certificate is mandatory for income tax, wealth tax, expanditative tax and gift tax. Now the government has increased the scope of this rule. Under this, tax liability has also been included under Black Money Rules, 2015.
After this move of the government, someone who has tax liability under black money rules, will not be able to go out of the country without clearance from authorities. However, the rules of section 230 are applied differently to residents and non-residents.
Will this affect people who leave India to settle abroad?
The announcement of change in the rule in the budget will not affect those Indians who are leaving India’s citizenship to take citizenship of another country. According to Indian law, it is mandatory to surrender Indian passport to someone who wants to take citizenship of another country. After that the resident has to apply for the Indian Government for the Renunciation Certificate. The Ministry of Home Affairs and the local police then examine the background of the person. It is seen whether any kind of tax liability or case is pending against the person. He then gets clearance.
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What will be the effect on Indian citizens going abroad?
It is mandatory to file Form 30 with the Income Tax Department for Indian people going abroad in connection with holiday or functioning. In this, the person’s PAN, the information of the place abroad where the person wants to go and the purpose of the journey is told. Some people do not fill this form because the authority in another country does not ask for this form. But, if the Income Tax Department later comes to know about the person’s foreign trip and feels that tax is stolen then he can take action. Therefore, those who fill the form 30C will not affect the change in the rules in the budget.