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Government clarified Tax Clearance Certificate, approval is necessary for those with tax arrears
In the Union Budget 2024, the Finance Minister presented a proposal for a Tax Clearance Certificate. There was a lot of anger on social media regarding this proposal. Many people felt that this certificate was for all taxpayers. Now the government has given clarification regarding the tax clearance certificate. The government clearly stated that this certificate is required only by some taxpayers.
In the Union Budget, a proposal was presented for a Tax Clearance Certificate. There was outrage on social media regarding this proposal. After the outrage on social media, the government gave clarification regarding this certificate. The government said that this certificate is not for all taxpayers.
Only those charged with a financial irregularity or who have substantial tax arrears will be required to apply for approval of a Tax Clearance Certificate. In this, the Finance Ministry has put in a proposal to add a mention of the Black Money Act, 2015 to the list of Acts in the Finance Bill, 2024. Under this, any person will have to first pay his outstanding liabilities to obtain a tax clearance certificate.
According to the Finance Ministry statement, the proposed amendment does not require all residents to obtain a tax clearance certificate.
According to Section 230 of the Income Tax Act, 1961, it is not necessary for every person to obtain a tax clearance certificate. It is necessary only for some persons.
