Do Indians need Income Tax Clearance before every foreign trip? Centre debunks viral claim

New Delhi: The Central government on Saturday dismissed as incorrect a claim circulating widely on social media that all Indian citizens would need an Income Tax Clearance Certificate before travelling abroad.

PIB issues fact check

The clarification was issued through a fact check by the Press Information Bureau after a video posted by investment banker Sarthak Ahuja went viral online.

In the video, which has now been flagged as misleading, Ahuja claimed that from April 1, every individual intending to travel outside India would be required to visit an income tax officer.

In the widely circulated clip, Ahuja said that the rule would apply to all forms of travel.

“It says every time that you have to leave the country for tourism, for travel, for any work, or to visit friends and family abroad. And it could be for any number of days, even if you're leaving for just one day,” he stated.

Government calls claim ‘fake’

The PIB Fact Check handle on X shared a screenshot of the video and labelled the claim as ‘fake’. It stated that the video suggested that all Indian citizens must obtain an Income Tax Clearance Certificate before every international trip.

PIB clarified that the interpretation being circulated was incorrect. It noted that misinformation had arisen due to a misunderstanding of the amendment.

“There appears to be misinformation about the said amendment emanating from an incorrect interpretation of the amendment. It is being erroneously reported that all Indian citizens must obtain an income-tax clearance certificate before leaving the country. This position is factually incorrect,” the statement said.

When an ITCC is actually required

According to the PIB release, an Income Tax Clearance Certificate is required only under specific conditions mentioned in Section 230(1A) of the Act.

These include situations where a person is involved in serious financial irregularities and their presence is necessary for investigation under the Income-tax Act or the Wealth-tax Act.

It is also required in cases where an individual has direct tax arrears exceeding Rs 10 lakh that have not been stayed by any authority.

Ahuja responds to Fact Check

Following the clarification, Ahuja responded to the PIB’s statement, alleging that his comments had been misinterpreted. He said authorities had focused on only 18 seconds of his 90-second video.

“This blanket calling something fake by changing the claim is not in the best of taste,” he said.

Mixed reaction online

However, Ahuja’s response did not find support among many of his followers. Several users pointed out that the opening “hook” of the video itself was misleading, which contributed to the confusion.