The Hindu : One Kelkar recommendation accepted

Online edition of India's National Newspaper
Friday, Jan 10, 2003

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One Kelkar recommendation accepted

By Our Special Correspondent

NEW DELHI JAN. 9. Signalling the fact that the Kelkar task force recommendations on direct taxes are already under the consideration of the Government, the Union Finance Minister, Jaswant Singh, today accepted one of the recommendation made in the final report.

According to an official release, the Finance Ministry has decided that henceforth income tax clearance would not be required for any person who is not domiciled in India or who is domiciled in India at the time of departure but intends to leave India as an emigrant or intends to proceed to another country on a work permit with the object of taking up employment or other occupation in that country. While the tax clearance certificate from the Income Tax authorities would not be required generally, it would still be necessary those in whose case the authorities specifically inform the emigration authorities that they cannot leave the country without the certificate.

To give effect to this decision, changes would be made in Section 230 of the Income Tax Act, 1961. This change is in accordance with the suggestion made by the task force on direct taxes, the release said.

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