Income tax free state: You will be surprised to know that there is a state in India where people do not have to pay any income tax. Even if the income of the people there is Rs 1 crore, the government is not able to recover even Rs 1 from them.
Sikkim income tax exemption: A few days ago Finance Minister Nirmala Sitharaman presented the budget for the financial year 2023-24. It was told in that speech that there will be no tax on income up to Rs 7 lakh. Many people were happy after this announcement, but do you know there is a state like this in India.
Where not even a single rupee is collected from the public as income tax. Yes, yes you are reading right. Even if the income of the people of that state is in crores of rupees, then the Income Tax Department does not collect even a single rupee from them. Let us know why this rule has been made in Sikkim?
Why was this exemption given?
For this, you have to know about the history of India because in the year 1950, India had made a peace agreement with Sikkim. Under him, Sikkim came under the protection of India. Then in the time of 1975 it was completely merged. Chogyal rule was going on in Sikkim. He issued the Sikkim Income Tax Manual in 1948 and when it merged with India, there was a condition that Sikkimese people would be exempted from income tax. Let us tell you that under Section 10 (26AAA) of the Income Tax Act, exemption is given to the native residents of Sikkim.
Native residents get discount
This exemption has been given to the original residents of Sikkim under the Income Tax Act. Let us tell you that the Supreme Court had given a decision in this matter. Since then, about 95% of the people of Sikkim take advantage of this exemption. Earlier this exemption was given only to those having Sikkim subject certificate.
Article 371a
Let us tell you that all the states of the Northeast have been given special status under Article 371A. For this reason, people from other parts of the country cannot buy property or land here. Residents of Sikkim are exempted from income tax under Section 10 (26AAA) of the Income Tax Act, 1961.
