Government debunks viral claim that all Indians need an Income-tax Clearance Certificate to travel abroad, clarifying that ITCC applies only in rare cases involving tax arrears or financial investigations.
PIB and CBDT fact-check a viral video on new travel tax rules, confirming that no blanket ITCC requirement exists and outlining the limited scenarios where clearance is needed.
The government on Saturday moved swiftly to debunk a viral claim suggesting that all Indian citizens must now obtain an Income-tax Clearance Certificate (ITCC) before leaving the country. The clarification comes after an Instagram video by a popular financial influencer Sarthak Ahuja (on IG as casarthakahuja) reportedly claimed that a “new law” effective from April 1, 2026, made the ITCC mandatory for every traveler, regardless of the purpose or duration of their trip.
Categorizing the claim as “FAKE”, the Press Information Bureau (PIB) and the Central Board of Direct Taxes (CBDT) noted that the rumors stem from a gross misinterpretation of the Finance (No. 2) Act, 2024.
The Income Tax Department and PIB Fact Check clarified on Saturday that Section 230 of the Income-tax Act, 1961, applies only to individuals involved in serious financial irregularities or those with substantial tax arrears.
In a recently published press release, the government has also clarified that the general public remains exempt from obtaining a tax clearance certificate.
Section 230: The ‘rare case’ clause
According to the official statement, the provision for tax clearance certificates under Section 230 of the Income-tax Act has been part of the statute since 2003 and has not undergone any fundamental change regarding its applicability to the general public.
The ITCC is required only in rare and specific circumstances, typically involving individuals who are “domiciled in India” but fall under high-risk categories. Specifically, a tax clearance is mandated only in the following two cases:
Serious Financial Irregularities: The person is involved in serious financial misconduct where their presence is deemed necessary for ongoing investigations under the Income-tax Act or Wealth-tax Act.
Substantial Arrears: The person has outstanding direct tax arrears exceeding Rs 10 lakh, which have not been stayed by any judicial or tax authority.
Furthermore, an ITCC cannot be demanded arbitrarily. The law requires a tax authority to record specific reasons and obtain prior approval from a Principal Chief Commissioner of Income-tax or a Chief Commissioner before asking an individual to produce the certificate.
Sarthak Ahuja responds to fact-check
Ahuja was quick to push back against a clarification issued by PIB, accusing it of misrepresenting his video. Responding to the fact-check, Ahuja said authorities had focused on only a small portion of his 90-second clip. “This blanket calling something fake by changing the claim is not in the best of taste,” he said.
However, his rebuttal drew mixed reactions online. Several followers criticised the video itself, arguing that its opening hook was misleading and contributed to the confusion flagged by the fact-check.
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