THE OLD SETTLERS OF SIKKIM

SIKKIM: CS heads committee to study Income Tax exemption to ‘Left Outs’

July 22, 2009


FROM SIKKIM EXPRESS

GANGTOK: The State government has constituted a six member committee headed by chief secretary ND Chingapa to consider exemption the left out individuals of Sikkim from the purview of Central Income Tax.

The other members of the committee are additional chief secretary TT Dorji, law secretary RK Purkhayastha, Chief Minister’s principle secretary RK Basnet and transport secretary KN Bhutia.

HB Rai, additional commissioner, commercial taxes division is the member secretary of the committee.

The high level committee has been tasked to examine all matters relating to grant of exemption of Central Income Tax (Direct Tax Law) to the ‘left out’ individuals in Sikkim and make recommendation to the State government for taking up the issue with the Centre. The committee has also been directed to submit its report at the earliest.

It may be added that the ‘left outs’ as referred by the State government implies those persons living in Sikkim for generations and had not been granted exemption from paying income taxes as provided to people with Sikkim Subject Certificates.

The Union government had last year exempted Sikkim Subject holders from paying Direct Income Tax by passing an amendment in the Finance Bill of 2008.

People of Sikkimese origin having Sikkim Subject Certificates have been exempted from Direct Taxes as per the 26AAA clause paving way for the Act to be enforced in the state.

However, the old business community who has been living in the State for generations but without Sikkim Subject certificates have expressed their objections for being left out of the Act.
The old business community had also expressed their objections for being bracketed into ‘Non Sikkimese’ category by the Union government in the Finance Act.

The old business community living here for generations had demanded to be defined as ‘Left out Sikkimese’ and not as ‘Non Sikkimese’.