Tax

Govt Debunks Viral Claim Of Mandatory Tax Clearance For All Travellers Leaving Country

The government clarifies that not all international travellers would be required to have an Income-tax Clearance Certificate, refuting viral claims on social media platforms

PIB Fact Check Debunks ITCC Claim On International Travels
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Summary

Summary of this article

  • PIB Fact Check denies mandatory ITCC for travellers.

  • Rule applies only rare tax arrears or investigations cases.

  • No new law introduced for general international travellers.

PIB Fact Check, the fact-checking arm of the Press Information Bureau (PIB), issued a clarification on April 18 to address a viral claim regarding international travel. The agency dismissed reports that stated that all Indian citizens must obtain an Income-tax Clearance Certificate (ITCC) before leaving the country. According to the official update, the general public remains exempt from this requirement.

The fake news went viral after a video by a popular financial influencer, Sarthak Ahuja (Instagram: casarthakahuja), was posted online. In the video, it was claimed that a new law effective from April 1, 2026, made ITCC mandatory for every traveller. The claim suggested the rule applied regardless of the purpose or duration of the trip.

PIB Clarification Of ITCC Rules

The claim was classified as "fake" by PIB Fact Check and the Central Board of Direct Taxes (CBDT). They pointed out that the rumours are based on the misunderstanding of the current provisions of the Income-tax Act, 1961, namely the changes to the act as stated in the Finance (No. 2) Act, 2024.

According to the statement, Section 230 of the Income-tax Act governs the requirement for an ITCC. Officials noted that this provision has existed since 2003 and has not been changed to apply broadly to the general public. They also added that the rule applies only in rare cases involving individuals under tax investigation or those with significant outstanding dues.

When Is ITCC Needed

Government's fact-checking wing has clarified that an ITCC is required only in specific situations. These include cases where a person is involved in serious financial irregularities and their presence is required for an investigation under tax laws.

It also applies when an individual has direct tax arrears exceeding Rs 10 lakh that have not been stayed by any court or tax authority. Officials stated that tax officers must record reasons and obtain approval from senior authorities, such as a Principal Chief Commissioner of Income-tax, before asking for the certificate.

Influencer Responds To Fact Check

After the PIB Fact Check labelled the claim as fake, Ahuja stated that the clarification misrepresented his video. He argued that authorities focused on a limited part of his content and that the blanket categorisation of the video as fake was not appropriate.

Reaction to the influencer's claim was not unanimous on the internet. Some users have commented that the original video could have created unnecessary confusion because of its opening hook.

Background On Section 230 Provision

Section 230 of the Income-tax Act deals with the conditions under which an ITCC can be required before leaving the country. The provision is generally applied in exceptional cases involving the enforcement of tax laws and is not linked to routine travel checks for the general public.

The Income-tax department and PIB reiterated that there is no change in the rules for ordinary travellers. Authorities have advised citizens to verify such claims through official sources before sharing them further.

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