Use Married Woman Property Act to safeguard your family’s future

by Bindisha Sarang Nov 30, 2012

Everyone wants to safeguard their family’s future, once they are no longer around. And, for that many buy life insurance policies as they ensure at least your wife and kids won’t have to struggle even if something happens to you.
The Married Woman Property (MWP) Act is one such law you could use to safeguard your wife’s and kids future. In fact, the Act was put in place with the intention to safeguard a married woman’s property from creditors and family members.
While the act covers a whole lot of things, from a personal finance point of view you need to know a few things. When you buy a life insurance policy on your life as a husband, you can actually buy the policy under the Married Woman Property Act. Of course, you will have to create a trust for that, but the advantage is huge.
If you already have a life insurance policy and bring it under this act, call your insurer for more details. Reuters
“ When you buy life insurance under this Act, this ensures that your creditors, even the Income Tax Department does not get hold of this money,” says Suresh Sadagopan, a Mumbai-based Certified Financial Planner. None of your creditors, neither banks, nor any kind of court attachments done, can get hold of this money.
To buy a life insurance policy (in your name) under this act you have to fulfill a few criteria. One, you should be a married man, or a divorcee or a widower. “The life insurance policy has to be taken in your name, not your spouse’s name,” says Sadagopan. As far as the beneficiary goes, it could be your wife or children or wife and children together.
Also, have to appoint a trustee; it could even be your wife. All you have to do is have the trustee sign an addendum, stating the permission of appointment of trustee to perform the duties of the trustee. In fact, you can change the trustee any time.
The most important thing to remember is that once you buy a life insurance policy under this Act, you will lose all control over the policy, since it will belong to the trust for the benefit of your wife and children, so it’s no longer part of your estate. However, you will need to pay the premiums. The best part is that you don’t need to pay anything extra to get a policy under this Act. Simply sign an addendum stating the same. Sadagopan says, “These days signing a separate addendum is not needed. We have seen many insurance application forms themselves have the MWP option mentioned on them.”
If you already have a life insurance policy and bring it under this act, call your insurer for more details. “This will work well, for those who are self employed or have their own business. But, even if you are salaried individual would to good to buy a policy under this act,” says Sadagopan.
Now that you know a thing or two about MWP, we suggest you call your insurer or your Certified Financial Planner to take action.

Stories of Jhamphey Mung reach Mumbai

GANGTOK, 27 Nov:(SourceSikkim Now)

 Acoustic Traditional’s work in Sikkim, especially in Dzongu, and neighbouring Darjeeling over the last few years seems to have finally received the nation’s attention. Yesterday Mid-Day, the afternoon English daily in Mumbai, carried a full page article on Acoustic Traditional [AT], the NGO behind the hard work, and Dzongu storytellers with their tales of Yeti or Jhamphey Mung.
“This is really great news for us and for the storytellers with whom we have been working all this time. Mr. Merek and Mr. Netuk Lepcha have been pictured in the article with their testimonials. It’s great because there is so much in our oral literature to tell. What people think is that our stories are just as much as they have come to know through books or documented works. Everything in the region is so much about storytelling that it is hard to believe that we have that much. Our oral traditions are as old as the sacred Earth and there is so much to know and listen to. It’s inspiring to know that interest in our work in growing. It’s time to tell our stories again, this time to the world,” said Salil Mukhia Kwoica, founder AT.
The article comes at a time when Acoustic Traditional is busy preparing for their upcoming Confluence, Festival of Indigenous Storytellers at Darjeeling between 07 and 09 December at the Windamere Hotel. Now in its 3rd year, the Confluence actually was initiated in Sikkim with the support of State Culture and Heritage Department. Last year, it was held in Bangalore.
The Confluence is a travelling Festival of Storytellers and the reason why it travels is because it aims to focus on a region’s folklore and storytelling. The focus in 2010 was Sikkim where around 12 storytellers from across various communities participated. In Bangalore, the focus was on the Southern tribes. This year, it is on Darjeeling. From Sikkim, storytellers from Dzongu will be participating this year.
AT will be nominating storytellers from the region to participate at the global Tera Madre Movement being organised in Shillong around 14 December 2012. “We are hoping that one storyteller from Sikkim and one from Darjeeling could be supported to represent there,” added Abhishek Pradhan, Programmes and Communication Manager, AT.
For the Confluence festival, AT is providing a concession especially for community-based associations to encourage their participation. The registration fee with concession is Rs 800 for three days as compared to the Rs 5,500 for non-regional participants.
For more information on how to register, please contact: 8972 313 930

English weekly ‘Pro-Sikkim’ launched

GANGTOK, 29 Nov:( SourceSikkim Now)

 A new weekly newspaper, Pro- Sikkim, with the tagline ‘the Thinking News Weekly’ was launched by Sikkim Pradesh Congress Committee president Nar Bahadur Bhandari, here at Press Club of Sikkim today.
The four-page tabloid is published and edited by Tenzing Bhutia and will come out every Sunday. The publisher also has plans to start an online version of the newspaper in the near future.
Addressing media persons today, Mr Bhutia mentioned that apart from issues related to Sikkim and the Sikkimese people, the newspaper will also carry analytical reports on different incidents and news covered during the week. “There is a need for such newspapers as Sikkim has failed to preserve its identity for which political leaders and the civil society are equally responsible,” he said.
Mr Bhutia mentioned that the merger of Sikkim, Article 371F and where Sikkim is headed are important issues and added that people have to move forward by looking into Sikkim’s history.
Extending his congratulations on the launch, Mr Bhandari said that it is a historic day as such a newspaper is the need of the hour for the Sikkimese people. Appreciating the initiative of Mr Bhutia, he stated that although the newspaper might have problems surviving in such times, they should continue with the good work. He further assured all possible support from his side.
Stating that “I am not anti-India but I am pro-Sikkim,” Mr Bhandari opined that Article 371 F has eroded in the hands of the present government. The SPCC president also informed that he will soon be starting Street Corner meetings all over the state.

Meeting between central IT officials and business community ends in deadlock

AMMET OBEROI

GANGTOK, 22 Nov: The Commissioner of Income Tax, Siliguri, Subroto Sarkar, and the Joint Commissioner, PD Karwa, met with members of the business community of Sikkim to discuss issues and problems relating to the non-compliance of the community in filing their tax returns. The meeting, held today at Hotel Tashi Delek, ended in a deadlock. This, primarily because the sides are divergent agendas – the IT officials were here to convince the old settlers to file their Income Tax returns while the community keen on convincing the officials and the IT Office to include them in the exempted list at par with the Sikkim Subjects.
Addressing the huge gathering, the Commissioner stated that after having joined the office just about a month ago he has come to Gangtok to discuss the problems being faced, solve them and to advice the business community that as per law, they had to file their taxes if they were earning taxable incomes.

“The issue of Income Tax is at a very nascent state in Sikkim and there are certain problems, but as per the law [Clause 26AAA of the Finance Act, 2008], people [mostly members of the old business community] not having Sikkim Subject Certificates or Certificates of Identification in the state have to pay central taxes”, he said.

“The 400 families not of Sikkimese origin staying in Sikkim, according to the law, must file their returns as the white paper has already been signed between the state government and the central government regarding the issue and all who are not of Sikkimese origin have been asked to file their returns from the year 2007-08, but this is not being done,” he added.

On the demand that the old settlers be exempted at par with Sikkim Subjects, he said, “We are not the law making authority, but just the law implementing agency. The demand is beyond our purview to clear”. He went to urge the business community to first start paying their taxes, adding that only then could things start moving forward in the right direction.

The Sikkim Chamber of Commerce, in turn, submitted a memorandum to the Commissioner highlighting that they have urged and requested that the 400 families who have been left out from the purview of Income Tax exemption and all matters pertaining to Central Income Tax for pre merger business communities [person residing in Sikkim prior to 26 April, 1975] be exempted from the need to file IT returns until the matter and demands of the affected citizens to various forums is resolved.

The meeting with central Income Tax officials and the business community was to push their case seeking Income Tax exemption at par with other Sikkimese who were granted exemption by the centre in the year 2008. Ever since the Sikkim Subject and Certificate of Identification holders in the state were granted exemption from paying direct income Tax, the Old Settlers [mostly members of the old business community] have been petitioning both the state and central governments to be equated with the Subject/ CoI holders in Sikkim and given the same benefit.

Their main ground is that their petitions for IT exemptions are in process of being considered by the central government. The old settlers have been pushing to be granted exemption to end discrimination and their primary demand is that those having settled in Sikkim before 1975 be given exemption. As for those having settled here post 1975, they have been demanding that the process of filing IT returns, being new to Sikkim, be explained to them for which some kind of workshop or seminar be organized by the IT office.

SK Sarda [president, Old Settlers Association of Sikkim] also handed over a petition to the Commissioner, wherein the problems being faced by the old settlers in the state were highlighted. He further urged that the problems faced be conveyed to higher authorities of the Central Board Direct Taxes [CBDT] and be resolved.

Mr. Sarda, in his address, highlighted that the SCC had, on several past occasions, “impressed upon the   Central Board of Direct Taxes on the need of such a meet”.

He went on to explain that, “There appears to have been some inadvertent omissions while defining the word ‘Sikkimese’ in reference to Clause 26AAA which does not cover all those who were entitled to income tax exemption. The old settlers have been permanently residing in Sikkim since last 100 to 130 years and unfortunately left out by non application of principles of equality and further without having been heard on merit. The discrepancy by non inclusion is being repeatedly brought to the notice of Sikkim Government and Union Government.”

Similarly, Prem Goyal [president, Sikkim Nagrik Sanghars Samiti] also placed a petition with the Commissioner. Speaking on his petition, he stated that the law passed in 1989 did not discriminate between the business community and other residents of Sikkim, but the rule passed in 2008 discriminates between the ‘non Sikkimese’ business community and Sikkimese and this has turned them into second class citizens here.
“There is a lot going on regarding the issue so until the issue is resolved the filing of Income Tax in Sikkim should be kept on hold by the IT department because forcefully implementing the law in the state could lead to tension,” he stated.

Meanwhile, the business community has resolved not to pay their returns until the issue is solved.

Sikkim Committee oppose issue of Residential

Posted on November 15, 2010 by iSikkim | Category: Latest News Local News Politics | 445 views | 3 Comments

Gangtok, Nov 14
Sikkim Subjects Bachao Committee submitted a memorandum to the Governor of Sikkim Balmiki Prasad Singh today at Raj Bhawan regarding the much debated Residential Certificate issue. Addressing a press conference today, Nawin Kiran Pradhan, the Vice Convener of this Committee, said that a meeting was held by the All Sikkim Educated Self Employed and Unemployed Association on 11th November, 2010 at Gangtok to discuss and deliberate upon the socio-economic and political implication of state Government Notifications No.119/Home/2010 and 120/ Home/2010 dated October 26,2010 issued by Chief Secretary to the Government of Sikkim regarding Residential Certificate and an amendment to the Notification regarding issue of Certificate of Identification respectively. He further informed that the said meeting was attended by two former MPs, president and leaders of various political parties, lawyers, prominent social workers, NGO representatives, students and concerned Sikkimese youth from all over the state.

Pradhan had begun the meeting by throwing light on these two Notifications and had also explained its implication for the future of Sikkim and Sikkimese. The participants also carefully read the two Notifications and expressed their views and comments on the same. Legal experts present in the meeting were of the opinion that these notifications will not pass the legal test as they are not based on any Act or statute passed by the Legislative Assembly. Hence, these notifications cannot be given effect to by the State administration.

The legal experts further pointed out that these two Notifications would have far-reaching implication on article 371F of the Constitution, the old laws of Sikkim and on certain fundamental rights of citizens of the state. Mr. Pradhan informed that considering the gravity of the issues and situations created by the two Notifications, the meeting unanimously took a decision to constitute a Committee to guide and spearhead a peaceful movement against the two illegal Notification and similar administrative instruments of the State and to prevail upon the Government to withdraw and cancel the ill conceived and illegal Notification, in the larger interest of the future generation of the Sikkimese society.

Nar Bahadur Bhandari, Chief Coordinator of the said Committee said that, they want to preserve special provision of Article 371 F. This is a baseless notification because there is no Act. He further mentioned that before issuing the Notification Legislative Assembly should pass the Act and without the Act in place the State Government cannot issue such a Notification.

Mr. Bhandari further added that they are not against any one, personally but this is a sensitive issue because this has a larger implication, to the whole of Sikkim. He also mentioned that H. E. the Governor is also concerned about this issue. Citizenship is a Central Government subject so the State Government has no right to issue the Certification of Identity to anyone without discussion with the Central Government.

Tseten Tashi Bhutia, another Coordinator of the said Committee appealed to all the IPS and IFS officers serving the State to read the old laws of Sikkim and to work sincerely in Sikkim for the larger benefit of all Sikkimese.

(Courtesy: Sikkim Mail)

Who needs Residential Certificate?

Posted on November 16, 2010 by iSikkim | Category: Featured Post Latest News Politics | 635 views | 11 Comments

The controversy over the Residential Card is getting more intense. While the government has geared up to get it implemented, the opposition is vehement not to let it see the light of day.

During his motivating lecture to the students at Chintan Bhawan Sikkim, Chief Minister Dr. Pawan Chamling asserted that these certificates will ensure that no more people from outside the state will be able to come and settle in the state. “Sikkim is the new land of opportunities and everybody wants to come here to use this opportunity,” said CM Pawan Chamling.

With the issue of Residential Certificates, only those who can prove that they were in Sikkim since 1975 will be eligible for the certificate, which is a prerequisite for working or establishing any kind of business in the state. Those holding Residential Certificates need not pay tax to the government, where as those who do not posses this certificate will be subjected to pay taxes.

But there are also concerns raised with such initiative of the ruling party. Tseten T. Bhutia, convenor of Sikkim Bhutia Lepcha Apex Committee (SIBLAC) feels that this scheme should have been debated by the people’s representatives and an act should be passed in the assembly.

With the merger with India in 1975, Sikkim got the status of 371 F which puts it in a special category under the constitution of India. Any laws subjected to the domicile of the state could overlap with the constitutional provisions laid by the Parliament.

The Sikkim National People’s Party (SNPP) slammed Residential Certificate project and said that the people of Sikkim have to remember that in the past the SDF Government has been increasingly going against the spirit of Article 371F and has been violating its provisions repeatedly. This move may be seen as one of them which will go on to crush the Sikkimese identity.

The concerns stand valid on the grounds that the Sikkim Subject Certificate (SSC) is already in practice. Any new move will be waste of public money. In the long run Resident Certificate will make SSC redundant. This would ultimately lead to a situation when the Sikkim Subject Certificate shall no longer be needed.

Sikkim also shares boundaries with China, Bhutan, and Nepal and is close to Bangladesh. Any plans should be discussed in public so as to not to create danger to national sovereignty.

Eligible Sikkimese to get RC in a month

Posted on February 8, 2011 by iSikkim | Category: Other Slider Post | 400 views | 2 Comments

Gangtok, Feb 8 (PTI):

People eligible for the recently notified Residential Certificates in Sikkim will have to wait a month or little longer to obtain it. These certificates, as per a state government notification issued a couple of months back, is to be issued to all those who have been residing in Sikkim since or before 26 April 1975 or are permanent employees of the state government, but do not have a Certificate of Identification [issued to Sikkim Subject Certificate holders and their descendants].

The matter is a hotly debated one between the ruling party and the opposition, with the latter seeing it as something which will dilute the status of the Sikkim subjects. Explaining the reason why the RCs had not yet been issued, a senior official at the District Administrative Centre [East] said that this was because the state government first wants the district authorities to complete the verification of Certificates of Identification. “As things stand, this task is to be completed by 20 February, but it is a major undertaking and could take longer”, the official said. After completing this verification of Sikkim Subject Certificates and CoIs, we will proceed with issuing RCs, the official said. Within a month or little longer we will be able to issue the first lot of RCs to the eligible applicants, he said. He said the authorities were currently working on the guidelines, shape, size, format, colour and other technical details of the RCs.

400 Sikkimese families refuse to pay tax

Posted on November 27, 2012 by iSikkim | Category: Featured Post Local News Slider Post | 90 views | 0 Comments

Gangtok, November 27, 2012

Around 400 business families in the state have turned down a request by the income tax department to file their returns and have demanded the same tax exemption which applies to people holding Sikkim subject certificates.

The Chogyal dynasty had issued the Sikkim subject certificates to the people living in Sikkim in 1961 under the Sikkim Subject Regulation Act of 1961.

The 400 business families, also known as “old settlers” had come to the state before 1975, the year Sikkim merged with India, but don’t possess Sikkim subject certificates.

They allege discrimination and demand a tax exemption similar to the one enjoyed by the certificate holders.

“The new income tax commissioner in Siliguri, Subrato Sarkar, had convened a meeting with the old settlers in Gangtok last week. Alleging discrimination, they have refused to file their income tax returns,” said the general secretary of the Sikkim Chamber of Commerce, Kailash Agarwal.

Sikkim was a part of the Chogyal Dynasty and became a part of India on April 26, 1975.

The central government had exempted Sikkim subject holders from paying income tax in 2008 after the amendment bill was passed in the Finance Act by the Parliament based on the state government’s request .

“We have been raising the matter with the central government on the income tax evasion to the old settlers. But so far, there have been no response. We will not file the IT returns,” said Agarwal.

“There are 400 families which have come to Sikkim before 1975. The list was prepared on the basis of government documents such as electricity bill, driving licence and trade licences” he added.

“I have filed a petition with the Rajya Sabha Committee in 2008 and the hearing on the matter is still pending” said Prem Goyal, the chief co-ordinator of Nagrik Sangarsh Samity.

“We are only the implementing agency and would comply with the income tax rules. We will again serve notices on those who are yet to file their returns” said an official source.

The Sikkim Chamber of Commerce has also requested the income tax department to conduct sensitisation workshops for those people who need to file their returns.

Courtesy: The Telegraph

For elders, Sikkim matters

SIKKIM SENIOR CITIZENS’ SOCIETY CONVENES SECOND GENERAL BODY MEETING

source Sikkim Now
GANGTOK, 23 Nov: The second General Body Meeting of Sikkim Senior Citizens’ Society was held at MLA Hostel Hall on 21 November. Justice (Retd.) AP Subba was present as the chief guest for the meeting presided over by former Chief Secretary and president of the organization, KC Pradhan.
As per a press release, forty members from all districts attended the four-hour long meeting. The deliberations covered all significant issues currently being faced by people in the state with special reference to senior citizens.
The release mentions that the most heated discussion revolved around LPG cylinders, its transfer, KYC, non-availability, distribution and the plight of the common people. A committee has been formed to discuss this issue with the concerned authority with a view to bring home the difficulties currently faced by the people and find remedial measures for systematic regularization, distribution and delivery. In view of winter months already setting in and Sikkim being a hilly state with cold climate the need for immediate redressal was highlighted.
Other matters ranged from social issues like drugs and suicides, slum-dwellers within Gangtok Municipal Corporation and their rehabilitation, traffic congestion and need for alternate highways and road-ways, maintenance of roads, organic farming and its proper understanding for better dissemination to the people at large and its inclusion in School curriculum, issue of Identity Cards to senior citizens duly indicating the benefits already being provided by the government, the influx of migrant population and its impact on the society and ways to tackle them also came into focus, the release informs.
Committees have been formed headed by senior competent members to study each of the issues threadbare and put up proposals for further deliberation and concretization before submission to the government for their consideration, the release mentions.
The body also felt the need to form sub-committees headed by senior members with leeway to select their own team from all strata of the society and directed the Executive Committee to put these sub-committees into operation at the earliest. The role of one of the committees is Intergenerational Interactions with a view to obtain the views of the younger citizens and incorporate them in the overall scheme.
Earlier, Justice Subba gave an insight on the Maintenance & Welfare of Parents and Senior Citizens Act. 2007 promulgated by the Government of India and all the members felt the need for its enforcement in Sikkim as well and resolved to approach the Government for its expeditious enforcement.
Also, one of the senior members expressed his concern over the disintegration and divisionism in the communities/ society and expressed that the organization should find ways and means with a view to bind all sections of the society together for the long term interest of the state. He specifically called for consensus to make all Sikkim Subject Holders and their immediate descendents as Tribals with a view to bring a sense of oneness and belongingness in the interest of the future generations.
It was informed that the state government has recently taken up with the Central Government the matter of bringing all the left-out ethnic groups under the Scheduled Tribe Status. The views were well appreciated and the issue being a complex one, the body was of the opinion that a core committee consisting of representatives of various sections of the community that matter should be constituted to examine the matter in greater depth and put up their views for further deliberation, the release adds.
The next General Body Meeting is resolved to be held in the first week of May 2013.

Asar Education Foundation” was opened today at Bhutia Busty, in Namchi

Namchi November 26: Non Governmental Organisation (NGO) named “ to endow with education and enlighten the under privileged children and those deprived of getting edification through formal classes.

The foundation, conceptualized and created by Ms. Komal Chamling and group of like-minded people, will be providing part time education to these children. 

This foundation has come up like a blessing to those childrens whose parents cannot afford to send their wards to educational institutions, who are the target of this NGO.

The said children will definitely be benefiting and learning the importance of knowledge and education which will be inculcated into their minds by the Foundation as they will be working towards empowering them by providing an education, thereby making them self reliant.

Classes will formally start from 27^th November 2012 on-wards, from 9 am to noon and will run throughout the year with some mandatory intervals.(IPR)  

Sikkim thanks the Sun

CHHATH PUJA CELEBRATION AT THAKUR BARI

ANUSHA GURUNG
source:Sikkim Now

GANGTOK, 19 Nov: Chhath Puja, also called Dala Chhath, is an ancient Hindu festival dedicated to the Hindu Sun God also known as Surya Shashti is being celebrated at Thakur Bari Mandir from 17-20 November by the Chhath Puja Committee of Gangtok.

Gangtok MLA, Dorjee Namgyal, accompanied by HRDD Minister, NK Pradhan, RM&DD Minister, CB Karki, and other dignitaries joined the prayers in which thousands participated this evening.

The Chhath Puja is performed in order to thank Surya for sustaining life on earth and to request the granting of certain wishes where the Sun, considered the god of energy and of the life-force, is worshiped during the Chhath festival to promote well-being, prosperity and progress in Hinduism, Sun worship is believed to help cure a variety of diseases, including leprosy, and helps ensure the longevity and prosperity of family members, friends, and elders informed the president of the committee Kaushal Kashyap. The rituals of the festival are rigorous and are observed over a period of four days. They include holy bathing, fasting and abstaining from drinking water [Vratta], standing in water for long periods of time, and offering Prashad [prayer offerings] and aragh to the setting and rising sun.
Although it is observed most elaborately in Bihar, Jharkhand, Eastern UP and the Terai regions of Nepal in modern times, and is more prevalent in areas where migrants from those areas have a presence, it is celebrated in all regions and major urban centers in India. The festival is celebrated in the regions including but not exclusive to the northeast region of India, Madhya Pradesh, Uttar Pradesh, Chhattisgarh, Chandigarh, Gujarat, Delhi, Mumbai and Mauritius. These days the community comes together to celebrate this festival which is a good sign of unity and can help promote peace in the whole world, said Mr Kashyap.

CBDT bats for penalty waiver in retro tax cases; boost for Vodafone?

CBDT bats for penalty waiver in retro tax cases; boost for Vodafone?

by Ashwin Mohan, ET Now Nov 16, 2012, 11.15PM IST



(CBDT has recommended waiver…)
In the first indication of a softening of stance from revenue authorities on the controversial retrospective tax laws introduced in budget 2012, the country's apex tax body, the Central Board of Direct Taxes or CBDT has recommended waiver of penalties in cases where tax laws are applied retrospectively, two government officials familiar with the development told ET NOW.

"An internal committee has finalized its report on the Shome Panel's recommendations on retrospective tax laws. It has favoured waiver of penalties in "appropriate cases" but has opposed waiver of the interest component. The report will be soon submitted to the Finance Ministry," said one of the two individuals cited above.

On October 8th 2012, the government appointed Parthasarathi Shome panel had recommended that in cases where retrospective tax laws are applied, adequate safeguards are needed in the form of interest and penalty waiver on the tax demands raised.

"In all cases where demand of tax is raised on account of retrospective amendment relating to indirect transfer...no interest...should be charged in respect of that demand so that there is no undue hardship caused to the tax payer," the panel said.

"Initially, the committee was in favour of rejecting both interest and penalty waivers, but a later a middle ground was reached. The interest component cannot be separated from the tax demand and thus cannot be waived off ," said a senior government official.

Tax experts feel if the CBDT's report is accepted and implemented by the Finance Ministry, then British telecom giant Vodafone's total tax bill in India will be reduced by nearly Rs 8000 crore rupees ie the penalty sought by the income tax department for failure to withhold tax on the 2007 acquisition of Hutchinson's mobile assets in India.

In October 2010, the tax department had slapped a Rs 11,218 crore tax notice ( including principal plus interest) on Vodafone. This lead to a protracted legal battle which ultimately ended with the Supreme Court ruling that the income tax department had no jurisdiction to tax the deal.

Budget 2012 sought to overturn the apex court order by retrospectively amending the tax laws on indirect transfer of assets

Who is who in Income tax in Sikkim

Mr Subroto Sarkar

Commissioner of Income tax- Siliguri

Mr P D Kanunga

Jt Commissoner of Income tax

Mr Lendup Lepcha

Asst Commissioner of Income tax

Gangtok

Mr N L L Sherpa

Income tax Officer- Gangtok.

Press Release of SCC
Ref. No.SCC/2012-13/
November 22, 2012

The Commissioner of Income Tax,
Income Tax Department,
Government of India,
Gangtok-Sikkim

M E M O R A N D U M

Sir,
The Sikkim Chamber of Commerce welcomes you to the small peaceful and beautiful state of Sikkim. As understood by us the very reason for your visit is to understand the reasons of non compliance of Indian Income tax extended in Sikkim in the year 2008. The Sikkim Chamber of commerce on behalf of all communities in Sikkim submits the under mentioned for your kind information and necessary action please.

History of Old Settlors in Sikkim.

The various communities comprising mostly of people who migrated from different parts of India have been settled in Sikkim from centuries when Sikkim was a country under the regime of Chogyal Dynasty. The then erstwhile kingdom treated all the communities equally in all aspects of life. In the year 1961, the Government of Sikkim enacted Sikkim Subject regulations Act 1961 and issued Sikkim Subject certificates to the citizens of Sikkim. The Indian citizens residing in Sikkim until April 26, 1975 chose not to obtain Sikkim Subject Certificates under the provisions of the Sikkim Subjects Regulation, 1961 as they were already citizens of India. Sikkim was a protectorate of India under the Indo-
Sikkim Treaty of 1950 under which all Indian citizens residing in Sikkim were treated at par with the Sikkimese people. There was no discrimination during the regime of the Chogyal and the Sikkim Income Tax Manual, 1948 was applicable equally to all persons residing in Sikkim until 16/06/2008 as per Circular No.2/Fin/Adm. dated 16/06/2008 issued by the Finance Department, Government of Sikkim. On 26th April 1975, Sikkim merged with India as per Article 371 (f) of the Indian constitution. The Sikkim Subject was repealed and Certificate of Identifications were issued to Sikkimese citizens and it was issued by Govt. of Sikkim. There were large number of people who were left out from becoming Indian citizen who were neither Indian nor Sikkimese, the Sikkimese Citizen having Sikkim Subject automatically became citizen of Indian, so the government through the MHA Order No.26030/36/90-IC-I dated 7/8/1990 and April 8, 1991 on the basis of MHA Order No.26030/69/88-IC-I dated 20th March 1989 with Guidelines thereto made them citizen of India and issued them Certificate of Identification. Indians were not required apply for COI as they were already Indians.

Extention of Indian Income Tax Act 1961 in Sikkim

The Indian Union extended the Income tax Act 1961 in Sikkim as per sec 10 of 26 AAA on 16/06/2008 as per Circular No.2/Fin/Adm. dated 16/06/2008 issued by the Finance Department, Govt. of India. The definition of “Sikkimese” as explained by the act deprived us of our identity and is discriminatory towards original Indians residing in Sikkim before its merger with Indian Union. As per the definition of “Sikkimese”, people who were neither Sikkimese nor Indian but made Indian vide MHA Order No.26030/36/90-IC-I dated 7/8/1990 and April 8, 1991 were exempted but at the same time the original Indians were denied of their legitimate rights.

Representations made by the communities so far and the outcomes

The various communities residing in Sikkim since pre merger era i.e. before 26th April 1975 have made several representations to different forums for inclusion of 400 families who are left out from the purview of Income tax exemption, the details are as under :

1. Petition in Rajya Sabha Petition Committee

A petition to seek equal rights and exemption of Income Tax and to safeguard the rights of bonafide Indian National Citizens residing in Sikkim before the merger is filed and accepted by the Rajya Sabha Petition Committee. The Committee was to visit Sikkim and conduct the hearing of affected citizens on 21st September 2011 but because of a massive earthquake in Sikkim on 18th September 2011 their visit was cancelled. The committee again was supposed to visit Sikkim on 16th of September 2012 for final hearing to reach upon conclusion but the visit was again cancelled due to imposition of code of conduct due to panchayat elections. The decision of the committee is still pending which is due any time from now.

2. Representation to Hon’ble Finance Minister, Govt. of India

A representation from the affected citizens were submitted to the then Honb’le Finance Minister vide letter on 14.12.2011 ( Annexure 1 ) and on hearing upon our grievances we were assured by him to look into the matter for consideration of Indian Income Tax exemption to the left out old settlers of Sikkim. The Honb’le Minister made a statement on record and assured in the Parliament on 12/12/2011 that “So far as Sikkim is concerned, I am receiving representations and some representations I have already received. I am looking into it.” ( Annex-2) when the issue was raised by the Shri. S. S. Ahluwalia, Member Rajya Sabha. As informed to us the matter is under active consideration and results awaited.

3. Representation to Hon’ble Chief Minister of Sikkim, Shri Pawan Kumar Chamling

We have submitted a memorandum to the Honb’le Chief Minister of Sikkim to grant exemption of Income tax to bonafide Indian national residing in Sikkim before 26th April 1975. The State Government acting on the memorandum took following actions
a) Acknowledging our genuine demand the state government formed a committee to study the issue and make recommendations to the government. (Please see Annex-3)
b) Passed a private memo in Assembly (Please see Annex-4).
c) Passed resolution in assembly on 26/03/2011 (Please see Annex-5)
d) Made recommendations to Govt. of India and raised the issue with Honorable Prime Minister of India and the then Hon’ble Finance Minister Shri Pranab Mukherjee. (Please see Annex-6)
e) The Chief Secretary wrote a letter on 21.01.2012 to Sri Mukesh C. Joshi, Chairman Central Board of Direct Taxes, Ministry of Finance, and Govt. of India. (Please see Annex-7)
The matter is still under consideration and no parties till date has denied to grant exemption and the deliberation on the issue is at its peak.

4. Representation to Income Tax Department, Sikkim and in Siliguri
There were memorandums submitted to various IT officials but no action or even reply has been received from their end.
5. Situation of Business Communities settled in Sikkim after post merger

The extension of Indian Income Tax has not only created havoc amongst the old Settlors but it has been very difficult for the post merger business communities to adopt the act. The Income tax manual 1948 was followed until 16/06/2008 and the post merger settlers were following it for almost 33 years. The calculations were very simple. The complexity of the taxation rules as per Income Tax Act 1961 has to be well taught to all for successful implementation of same. Moreover large numbers of businessman have already paid their taxes upto the financial year ending March, 2008 under Sikkim Income Tax manual to the Government of Sikkim. Since decades the business communities have been running their businesses in Sikkim as Hindu Undivided Family (HUF), everything is in the name of Head of the family. The assets and income actually belong to all members of the family. No tax planning has been done as it is done in other parts of the country.

Sir, in view of above facts and considering the complexities of the issues involved we request and suggest you that :

a) All matters pertaining to Central Income Tax for pre merger business communities i.e. a person residing in Sikkim prior to 26th April 1975 be kept in abeyance until the matter and demands from the affected citizens to the various
forums as stated above is resolved. The community at large is waiting for its long pending demands made to the concerned authorities and final conclusion from there end is still awaited. It is also submitted that the issue here is not related to Income Tax but is demand for their legitimate rights and to safeguard their identity.

b) For successful implementation and acceptance of Indian Income tax amongst the post merger residents of Sikkim, the Sikkim Chamber of Commerce suggests that the same should be implemented from a prospective date i.e. 01/04/2013. In the meantime proper training and guidance be provided to them by creating a conducive atmosphere and by conducting seminars and camps to educate them.

We heartily appreciate the gesture of your esteemed department for conducting such a meeting with the public to identify their problems and grievances and we expect the same gesture in future as well.

Thanking you,
With warm regards,

(Ashok Sarda)
President
Sikkim Chamber of Commerce

source:voice of sikkim

Memorandum submitted to CIT,Siliguri at Gangtok at a function at Hotel Tashi Delek on 22.11.2012

The Commissioner of Income Tax, Siliguri

Income Tax Department

Ministry of Finance

Government of India

Camp: Gangtok, Sikkim

Sirs,

We are grateful to your goodself  for having spared your valuable time to be with us to understand the ground realities in respect to implementation of Direct taxes in Sikkim subsequent to amendment brought about by Finance Act 2008, inserting a new clause 26AAA in Section 10 of the Income Tax Act 1961.

May we submit that on several past occasions we  have impressed upon the   Central Board of Direct Taxes on the need of such a meet.

Sir, Sikkim ,a totally different country was made a State of the Union of India in 1975.Till 2008, the income tax law of Sikkim was- Sikkim Income tax manual 1948, which was uniformly followed by one and all for 60 long years.

There appears to have been some inadvertent omissions while defining the word ‘Sikkimese’ in reference to Clause 26AAA which does not cover all those who were entitled to income tax exemption. The old settlers have been permanently residing in Sikkim since last 100 to 130 years and unfortunately left out by non application of principles of equality and  further without having been heard on merit. The discrepancy by non inclusion is being repeatedly brought to the notice of Sikkim Government and Union Government .

In our various memorandums to The President of India, The Prime Minister of India, The Home Ministry, The Finance Minister and CBDT, we have explained and submitted at length as to how the old settlers are also Sikkimese and  how they have been genuinely left out from being considered for exemption on grounds of  having been similarly situated.

Sir, The Government of Sikkim having considered our demands duly constituting a committee and finding the same as just and genuine, has been kind enough to pass

a historic  resolution in the Sikkim Legislative Assembly urging the Union Government to cover these left out people also under the exemption bracket.

Our Chief Minister Shri Pawan Chamling  personally wrote a DO to then Finance Minister and urged the Government of India to rectify the anamolies.

Our Hon’ble  Chief Minister again met the Honourable Prime Minister of India  and raised the issue of grant of income tax exemption to left outs and Hon’ble PM gave a very positive assurance on the subject. The people of Sikkim and The Government of Sikkim headed by our beloved Chief Minister Shri Pawan Chamling have continuously supported and are with us on the issue.

His Excellency, the Governor of Sikkim Shri Balmiki Prasad Singh in the last four Budget Address has  hoped that the demand placed by the State Government in respect of Income tax Exemption to the of the Left-out communities including members of the old business communities of Sikkim will be addressed by the Central Government soon.

 His Excellency specifically said

“ This will ensure that the social cohesion and harmony prevailing in Sikkim be further strengthened and consolidated.”

Similarly, Hon’ble  Finance minister in his speech in the Parliament during Budget 2012 said the matter is under the consideration of the Government of India.

Lately, The Parliamentary Standing Committee On Finance has also taken cognizance of our submissions and has been been kind enough to recommend

to the  Government of  India to take suitable measures to include the  old settlers in the scheme of income tax exemption.

Your honor would appreciate that making Sikkim an Indian State was a unique and historic event as it involved merging of two different countries, their cultures and their laws,  and hence deserves a special place in application of laws with due regard to principles of equality and natural justice enshrined in the Constitution .

We cherish your visit to Sikkim as historic and hope that  you will convey the ground realities to the Central Board of Direct Taxes and Hon’ble Finance Minister of  India such that they get the right feel of the problem that lies in Sikkim- a very sensitive border State.

Sir, It is time that the aspirations of all section of people of Sikkim is considered positively leaving no one unhappy and that will usher in building a happy Sikkim, a peaceful Sikkim and a strong Sikkim and finally a strong India.

With highest regards

Yours Faithfully,

S K Sarda

President, Association of Old Settlers of Sikkim

Dt 22.11.2012

Gangtok

Sikkim: 150 students selected for State sponsored coaching

November 22, 2012 Source iSikkim

Altogether 150 youths of Sikkim, holding graduation and above degrees, would be undergoing State sponsored coaching classes in New Delhi, Hyderabad and Tamil Nadu for appearing in UPSC and Staff Selection Commission (SSC) exams.

These youths were selected from an entrance exam conducted by the State Human Resource Development (HRD) department on October 31 following Chief Minister Pawan Chamling’s announcement to give free coaching to Sikkimese youths in best coaching centres of the country.

During his tour of schools earlier this year, Chamling had announced to provide training in reputed coaching centres to interested students of Sikkim so they can give entrance exams of national services like UPSC and SSC.

Out of a total of 145 candidates, 130 students passed the State level entrance exams for UPSC coaching scheme. The remaining 15 students were given the opportunity to undergo coaching for SSC exams along with five other students who appeared for this particular scheme.

Speaking with SIKKIM EXPRESS, HRD secretary CS Rao said: “The 130 candidates who have been selected forundergoing the UPSC coaching scheme would be studying in various reputed institutes in New Delhi, Hyderabad and Tamil Nadu. We have inspected and selected the best coaching centres of the country. The twenty candidates selected for the SSC coaching will be sent to New Delhi”. Around Rs. 3 crores would be spent by the State government on sponsoring these 150 candidates in the coaching centres. The State government is also providing accommodation and food expenses besides giving a onetime grant of Rs. 10,000 to each candidate as travelling costs. The candidates would be leaving this month to their respective coaching centres and attend their course which range from 5 months to 11 months. Each candidate has signed an undertaking with the HRD department promising not to abandon their courses midway.

Asked about the State government’s expectations from its maiden initiative to prepare Sikkimese youths for Central services, the HRD secretary said that the Chief Minister and State government would be pleased to have a success rate between 25 to 50 percent. “The government and especially the Chief Minister will be happy if 25 to 50 percent cracks the Central service examinations. We are hopeful that our selectedstudents would crack the exams after attending the coaching classes and bring laurels for the State in days to come”, he said.

The selected students have thanked the Chief Minister and State government for the coaching initiative. “It is a wonderful opportunity for the educated youths of Sikkim and we thank the Chief Minister for this. It is impossible for middle class youths to attend such coaching classes on their own expenses. To receiving coaching from reputed institutes is a dream come true for us”, said Bhuman Basnet from Namchi. Basnet has cleared the entrance exam for UPSC coaching scheme. “I take this opportunity as a blessing and will attend the coaching classes with full dedication. I will try my best to crack the UPSC exams and bring glory to our State”, he said. “I had a dream since childhood to become an IAS officer and today I feel that I am moving closer to achieve that dream through the coaching facility started by the State government. I thank our Chief Minister for making this facility possible for me. I could not have afforded to attend the coaching classes on my own”, said Avinash Lamichaney from Pani House, Gangtok.

Central IT officials to review exemption demand of Old Settlers

Central IT officials to review exemption demand of Old Settlers

GANGTOK, 20 Nov: The old settlers community of Sikkim is gearing up for another round of negotiations with central Income Tax officials to push their case seeking Income Tax exemption at par with other Sikkimese who were granted exemption by the centre in the year 2008. Ever since the Sikkim Subject and Certificate of Identification holders in the state were granted exemption from paying direct income Tax, the Old Settlers [mostly members of the old business community] have been petitioning both the state and central governments to be equated with the Subject/ CoI holders in Sikkim and given the same benefit.
A senior Income Tax official along with officials from the Siliguri IT circle is reportedly scheduled to arrive in Gangtok on 22 November for a meeting with the community members. The agenda is primarily to understand the demand seeking IT exemption as put forward by the old settlers of the state. While their demand has already been explained often and extensively to central officials, the change of guard following transfer of officials especially in the IT department and in the Siliguri IT circle has led to the demand having to be explained again.
On the other hand, it is also informed that the IT officials will also be here with the aim to look at implementing Clause 26AAA of the Finance Act, 2008 in the state whereby those without Sikkim Subject Certificates or Certificates of Identification are liable to pay central income tax. Those falling under the liability aspect of this clause are largely members of the business community and though the Income Tax office here in Gangtok has been repeatedly sending them notices to file their IT returns, the community has remained adamant on their stand claiming exemption.
This has created problems for the income tax officers as they are directed by New Delhi to meet targets [on IT collection]. In other words there is a particular amount set as target which the IT office here has to collect.
Their main ground of ignoring the notices is that their petitions for IT exemptions are in process of being considered by the central government. The old settlers have been pushing to be granted exemption to end discrimination and their primary demand is that those having settled in Sikkim before 1975 be given exemption. As for those having settled here post 1975, they have been demanding that the process of filing IT returns, being new to Sikkim, be explained to them for which some kind of workshop or seminar be organized by the IT office. ( Source  Sikkim Now)