Tax clearance required every time you leave the country? PIB fact checks viral claim

The government on Saturday, clarified that claims on social media suggesting that all Indian citizens are required to obtain an Income Tax Clearance Certificate (ITCC) every time before leaving the country are false.

Government's clarification on the issue came after a video by financial influencer Sarthak Ahuja gained traction on Instagram, where he claimed that from April 1, 2026 individuals would need to visit an income tax officer before leaving the country.

“Now every time that you leave the country, you will first have to visit the income tax officer. And this is a new law which has come into effect from 1st of April, 2026. 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,” Ahuja can be heard saying in the clip.

What PIB Fact Check said?

Press Information Bureau (PIB) dismissed the claim as “fake” and said they stem from a misreading of recent amendments.

“An Instagram video by the account (@casarthakahuja) is claiming that all Indian citizens must obtain an income-tax clearance certificate (ITCC) every time before leaving the country. This claim is fake," read PIB Fact Check's post.

In its post, PIB also mentioned that under Section 230 – tax clearance certificates are not mandatory for everyone. They are only required for specific individuals under certain legal circumstances. The provision has been in place since 2003, even after the amendments vide Finance (No. 2) Act, 2024.

In response to PIB's post, Sarthak Ahuja wrote: “Horrible. The video does not say all citizens. It clearly states that people who don’t have taxable income or PAN. So why pick on selectively showcasing it as incorrect!”

PIB Fact Check also referred to a 2024 release from the Ministry of Finance – where it clarified that not every person leaving the country is required to obtain a tax clearance certificate.

“As per section 230 of the Act, every person is not required to obtain a tax clearance certificate. 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,” the release read.

When tax clearance certificates are required?

As per Section 230(1A) of the Act, persons domiciled in India may be required to obtain the certificate in following circumstances:

– Where the person is involved in serious financial irregularities and his presence is necessary in investigation of cases under the Income-tax Act or the Wealth-tax Act and it is likely that a tax demand will be raised against the person,

or,

— Where the person has direct tax arrears exceeding Rs. 10 lakh is pending which is not stayed by any authority.

A person can also 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.