The government on Saturday, April 18, clarified that claims circulating on social media that all Indian citizens must obtain an Income Tax Clearance Certificate (ITCC) before travelling abroad are false.
The clarification came after a video by investment banker Sarthak Ahuja went viral on Instagram. Here, he claimed that from April 1, every individual would be required to visit an income tax officer before leaving the country.
“It says every time that you have to leave the country for tourism, for travel, for any work or to visit friends and family abroad. And it could be for any number of days, even if you're leaving for just one day,” he can be heard saying in the clip.
The Press Information Bureau (PIB), responding on X (formerly Twitter), rejected the claim and called it “fake”.
“There appears to be misinformation about the said amendment emanating from an incorrect interpretation of the amendment. It is being erroneously reported that all Indian citizens must obtain an income-tax clearance certificate (ITCC) before leaving the country. This position is factually incorrect,” PIB stated.
“As per section 230 of the Act, every person is not required to obtain a tax clearance certificate. Only certain persons, in respect of whom circumstances exist which make it necessary to obtain a tax clearance certificate, are required to obtain the said certificate. This position has been in the statute since 2003 and remains unchanged even with the amendments vide Finance (No. 2) Act, 2024,” it added further.
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The bureau further mentioned that the Central Board of Direct Taxes (CBDT) has already specified the limited cases in which such a certificate may be required for persons domiciled in India.
These circumstances include cases where a person is involved in “serious financial irregularities and his presence is necessary in the investigation of cases under the Income-tax Act or the Wealth-tax Act, and it is likely that a tax demand will be raised against him.”
The second case includes individuals who have direct tax arrears exceeding Rs 10 lakh that remain unpaid and have not been stayed by any authority.
The guidelines also make it clear that an ITCC can only be required after recording proper reasons and after obtaining approval from the Principal Chief Commissioner or Chief Commissioner of Income Tax.
The government further reiterated that ITCC under Section 230(1A) is required only in rare cases, and not for routine foreign travel by the general public. It is applicable only in exceptional circumstances as defined under the law.
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