Requirement to obtain an ITCC is not universal: CBDT
According to CBDT, since its introduction in 2003, the provision has only applied to individuals in specific circumstances. "Only certain persons, in respect of whom circumstances exist which make it necessary to obtain a tax clearance certificate, are required to obtain the said certificate. This position has been in the statute since 2003 and remains unchanged even with the amendments vide Finance (No. 2) Act, 2024," said CBDT.- Persons involved in serious financial irregularities.
- Those persons who have direct tax arrears exceeding Rs 10 lakh that has not been stayed by any authority.
- A person can be asked to obtain a tax clearance certificate only after recording the reasons for the same and after taking approval from the Principal Chief Commissioner of Income-tax or Chief Commissioner of Income-tax