Arjuna – Krishna, now every Indian needs Income Tax Clearance Certificate before travelling abroad. Is it true?
Krishna – hey Arjuna, it is partially true. Not all Indian nationals are required to obtain an Income Tax Clearance Certificate before travelling abroad. Let me allow to explain you.
The Income Tax Clearance Certificate under section 230 (1A) of the Income Tax Act, 1961 is required to be obtained only by persons domiciled in India and that is too under the circumstances like
- Persons involved in serious financial irregularities.
- Those persons who have direct tax arrears exceeding Rs 10 lakh that has not been stayed by any authority.
Further, a person can 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.
Arjuna, I think now you understood, why I said, it is partially true in the beginning.
Arjuna – Yes completely understood. Thanks a lot. Can I ask one more question to you today?
Krishna – Yes my dear Arjuna. Please go ahead.
Arjuna – Krishna, can you please elaborate me about Loan against shares?
Krishna – Yes Arjuna. You can avail loan against shares. Please note down the points:-
- If you have immediate finance needs like business expansion and or to meet personal expenses then loan against shares is a good option which you can explore.
- You have to pledge your shares as collateral to secure a loan.
- Banks and non-banking financial companies (NBFCs) offer these services.
- Loan amount is capped at 50% of the market value of the pledge shares.
- You can still continue to retain ownership of shares, enjoy dividends and voting rights.
- Your shares would be held in demat account with a pledge marked in favour of the lender.
- Loan can be a lump sum and or an overdraft facility as you prefer.
- You would be eligible only if you have shares of listed companies.
- Before applying keep the following documents ready:-
1. PAN, Aadhar for KYC
2. Ownership of proof of shares
3. Proof of Income like bank statements, IT Returns
Arjuna, I think now you would have better clarity about loan against shares.
Arjuna – Yes of course Krishna. Thank you so much Krishna.
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