In response to widespread social media outrage over a Budget proposal mandating tax clearance certificates for international travel, the government clarified on Sunday that the requirement will apply only to individuals with significant tax dues or those accused of financial irregularities.

The clarification came after concerns were raised about the Finance Bill, 2024, which proposed an amendment requiring tax clearance certificates for overseas travel. The finance ministry emphasized that the amendment pertains specifically to individuals with substantial tax arrears or those accused under the Black Money Act, 2015.

“The proposed amendment does not require all residents to obtain a tax clearance certificate,” the ministry stated. “Only those with financial irregularities or significant tax dues need such clearance.”

The Finance Bill, 2024, includes a provision to add the Black Money Act, 2015, to the list of Acts requiring individuals to clear their liabilities before obtaining a tax clearance certificate. This measure aims to prevent tax defaulters and those involved in financial misconduct from evading their obligations by traveling abroad.

The government’s clarification seeks to alleviate public concern and ensure that the new regulations are understood as targeting high-value defaulters and those with outstanding tax liabilities, rather than the general population.

This move aligns with the government’s broader efforts to tackle financial irregularities and enhance compliance with tax regulations, ensuring that individuals with substantial tax dues fulfill their obligations before leaving the country.