
Sikkim Tax Rules: This time the Income Tax Department has extended the date of filing income tax returns till September 15. People are giving details of their income to the department. But do you know that there is also a state in India where there is no tax on income? In Sikkim, no person has to pay any tax on his income.
Sikkim is the only state in India where local residents are exempted from income tax under Article 371 (F) of the Constitution and Section 10 (26AAA) of the Income Tax Act. When Sikkim became a part of India in 1975, he had his own administrative and tax rules. The Government of India has promised to continue these rules. For this purpose, Article 371 (F) was inserted in the Constitution.
Sikkim exempted the original residents from income tax. This is still applicable today. According to Section 10 (26AAA), there is no tax on the salaries, businesses, benefits, interest or investment of the original inhabitants of Sikkim. This special provision was designed to maintain the cultural and historical identity of Sikkim which separates it from other states of India.
There is no income tax in Sikkim. But there are some rules for this too. This means that not all people are discounts there. Only the people registered under the Sikkim Subjects Rules, 1961 and the descendants of the registered people at that time are exempted from tax. People coming to or coming from outside are not eligible for this exemption.
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