If you are an Indian citizen planning to move abroad permanently, you must obtain a tax clearance certificate from the Income Tax Department. It is mandatory to produce the certificate for relocation as the rule covers taxes such as wealth tax, expenditure tax and gift tax also, under Section 230 of the Income Tax Act.
The certificate would declare that there are no unpaid taxes at your end and in the event of outstanding amounts, if any, you agree to settle them before you leave the country. Those who have a bank balance of ₹5 lakh or less are not bound by this rule.
This rule applies to NRIs as well, though residents must report all foreign assets and income from the same while filing IT Returns, failing which they have to pay a ₹10 lakh penalty under the Black Money Act. – editor@nrifocus.com
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