New Rule Effective October 1, 2024: No Emigration Without NOC for Black Money Notices

The laws for people renouncing Indian citizenship to settle abroad have been made stricter in the current central budget. From now on, if any procedure is pending under the Black Money Act, no citizen will be able to renounce their Indian citizenship and settle abroad. In addition, to go abroad, one must obtain clearance for all taxes, including income tax and any outstanding dues, as well as the records of any property purchased abroad. Only then will the Indian citizen be able to adopt foreign citizenship. Experts say that previously, many people settled abroad without obtaining this NOC, and crores of rupees are still owed by them. After this rule, permission to settle in another country will only be granted once all types of liabilities are settled. It is noteworthy that an average of 1.5 lakh people are settling abroad annually, and this number is constantly increasing, including many fraudsters who have fled abroad.

Expert: Previously, Only Government Debt Was Considered for Going Abroad

Previously, when going abroad, only significant financial dues were considered. If there were any dues, they had to be settled, including IT, wealth tax, and other taxes. However, money laundering or the Black Money Act was not included, and people could renounce their citizenship without obtaining clearance. But from October 1, 2024, this rule is changing. From now on, if any property has been purchased abroad and there is any penalty or other tax issue pending, clearance will not be given. In short, if proceedings have been initiated under the Black Money Act, you cannot renounce your citizenship. > Hiren Abhangi, C.A.

When is Action Taken Under the Black Money Act?

Generally, proceedings under the Black Money Act are carried out by the Enforcement Directorate (ED). This happens when foreign transactions are made or property is acquired, and returns have not been filed or investments are hidden under other names. When such investments come to notice, proceedings are initiated under the Black Money Act.