There is a ruckus about the Black Money Act...?
There is a ruckus about the Black Money Act...?The government of india has introduced the Black Money Act to prevent tax evasion and black money. This new law is going to come into force from october 1, 2024. The new rule was introduced to deal with tax evasion related to undeclared foreign assets. However, it was claimed that everyone will have to submit a Tax Clearance Certificate before traveling abroad. A debate broke out over this. It was also claimed that this could lead to harassment. Now the government has clarified in this matter and said that not everyone will have to submit this certificate.The rule will apply to tax fraud and arrearsThe Finance Ministry on Sunday issued a clarification regarding the new rule. Citing the rules of 2004, the ministry said that tax clearance certificates will have to be submitted only by those who are involved in serious tax fraud or who have income tax dues of more than Rs 10 lakh. Even if they have a stay in this regard from any authority, they will not have to submit the tax clearance certificate.Not every citizen needs to give this certificateThe Finance Ministry clarified the situation on this dispute and said that a tax clearance certificate can be sought from a person only after taking approval from the Principal Chief Commissioner of Income Tax or Chief Commissioner of Income Tax. Under the proposed amendment in Section 230 of the Income Tax Act, all residents will not need to obtain a tax clearance certificate before going abroad. In the general budget, it has been proposed to include the Black Money Act in the list of laws under which citizens of india can pay their tax liabilities.Income Tax Authority will issue this certificateTax clearance certificate will not be sought from every citizen going abroad. This certificate will be issued by the Income Tax Authority. It will state that the person has no liabilities under the Income Tax Act, Wealth Tax Act 1957, gift Tax Act 1958 and Expenditure Tax Act 1987. This certificate will verify that the person has no outstanding tax liabilities or he has made satisfactory arrangements for payment of such outstanding taxes before leaving India.