Income Tax- Due to the conditions of merger in India, the original residents of Sikkim have got Income Tax Exemption. A special provision has been made in the Income Tax Act to give the benefit of tax exemption to the residents of Sikkim.
New Delhi. People earning more than the income tax exemption limit in India have to pay income tax. But, you will be surprised to know that the people of Sikkim state are exempted from paying income tax. Almost 95 percent of the people living in Sikkim do not have to pay even a single rupee as income tax, irrespective of how much they earn annually. Since the merger of Sikkim with the Union of India, the people there have been exempted from paying income tax.
All the states of the Northeast have got special status under Article 371A of the Constitution. This is the reason why people from other parts of the country are prohibited from buying property or land in these states. The natives of Sikkim are exempted from income tax under section 10(26AAA) of the Income Tax Act, 1961. That is, the people of the state do not have to pay any tax on their income.
Native residents have got exemption
Under the Income Tax Act, this exemption is available to the original residents of Sikkim. After a decision of the Supreme Court, about 95 percent of the people of Sikkim have come under this exemption. Earlier this exemption was given only to those having Sikkim subject certificate and their descendants. He was made an Indian citizen under the Sikkim Citizenship Amendment Order, 1989. But after the Supreme Court granted the status of Sikkimese natives to the people of Indian origin living in Sikkim till April 26, 1975 (a day before the merger of Sikkim with India), 95 percent of the population has gone out of the tax net.
Why have you got the discount?
Sikkim is believed to have been established in 1642. According to the Indo-Sikkim Peace Agreement in the year 1950, Sikkim came under the protection of India. It was completely merged with India in 1975. Sikkim’s ruler was Chogyal. He issued the Sikkim Income Tax Manual in the year 1948. The terms of merger in India also included the terms of income tax exemption to Sikkimese people. Keeping this condition in mind, section 10 (26AAA) of the Indian Income Tax Act has provided exemption from income tax to the native residents of Sikkim.
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com
