As per proviso to sub-section (1A) of section 230 of Income Tax Act, 1961 (‘Act’), no person who is domiciled in India and in respect of whom circumstances exist in the opinion of an income tax authority (‘ITA’) which render it necessary for such person to obtain a Tax clearance certificate, shall leave India unless the person obtains certificate from the ITA stating that he has no liabilities under the Act or other specified Acts or stating that satisfactory arrangements have been made for payment of taxes which are or may become payable.

The ITA shall record the reasons for the circumstances which make it necessary for a person domiciled in India to obtain a certificate and shall obtain prior approval of Principal Chief Commissioner or Chief Commissioner of Income-tax.
In Finance Act 2024, an amendment has been made from 01 October 2024 to include tax liability under Black Money Act which may lead to requirement of persons domiciled in India obtaining such certificate from the ITA.

Thus, the only change made by Finance Act is inclusion of tax liability under the Black Money Act.

Further, as per CBDT instruction no. 1/2004 dated 5/2/2004 such certificate as per the above provisions may be required in the circumstances where-

(i.) the person is involved in serious financial irregularities and his presence is necessary in investigation of cases under the Act or the Wealth-tax Act and it is likely that a tax demand will be raised against him, or
(ii.) the person has direct tax arrears exceeding Rs. 10 lakh outstanding against him which have not been stayed by any authority.

For details, please refer relevant provisions of the Income Tax Act, Rules and above referred CBDT instruction.

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PDF version is attached: Indexation benefit allowed to Resident Individuals or HUF for immovable properties acquired before 23.7.24