The issue of economic offenders having large tax liabilities fleeing the country over the past several years has added undue pressure to the exchequer’s coffers. To curb this menace several measures have been undertaken including the requirement to obtain an Income Tax Clearance Certificate (‘ITCC’) before leaving the country.
Recently, the Finance (No. 2) Act, 2024 sought to extend the requirement to obtain an ITCC by a person domiciled in India to cover liabilities under the Black Money Act. However, it has raised some pertinent questions around the provision itself including who really constitutes to be a ‘person domiciled in India’. In an article published on Taxsutra, Ritesh Thakkar, Director – Direct Tax, and Mansi Parikh, Articled Assistant – Direct Tax, provide their thoughts around the Tax Clearance conundrum!