Thursday, November 22, 2012

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)

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