Reuters

A performance during the Camel Festival in Bikaner, Rajasthan.

Reference books on Sikkim

Our Natural Resources and Our Responsibilities. Gangtok.
Dutta Ray, Sunanda. 1985. Smash and Grab : Annexation of Sikkim. New Delhi:
Vikas Publishing House.
Lama, Mahendra P. 2001. Sikkim Human Development Repor. Delhi: Government
of Sikkim, Social Science Press.
Pinn, F. 1990.  The Road Of Destiny: Darjeeling Letters 1939. Delhi: Oxford
University Press.
Rai, Joel. 2004. ‘Sikkim: The Mantra Is Micro’. India Today, Vol. xxix No. 32.
August 10-16.
Rustomji. Nari. 1987. SIKKIM: A Himalayan Tragedy. Bombay: Allied Publishers
Pvt. Ltd.
Sinha, A C. 1975. Politics of Sikkim: A Sociological Study. Faridabad: Thompson
Press.
Sinha, A C. 1998. Bhutan: Ethnic Identity and National Dilemma. New Delhi:
Reliance Publishing House.
Sinha, A C. 2003.  THE NEPALIS IN NORTHEAST  INDIA: A Community In
Search of Indian Identity. New Delhi: Indus Publishing Company.
White, J C.  1971. SIKKHIM AND BHUTAN: 1971: Twenty-One Years On The
North East Frontier: 1887- 1907.  Delhi: Vivek Publishing House. First
Indian Print.

KYC – Transfer of Bank Accounts

KYC – Transfer of Bank Accounts – Rent agreement

Registered Rent agreement can be accepted as KYC documents & Relaxation for transfer of existing accounts at the transferor branch to the transferee branch

RBI/2012-13/399
DBOD.AML.BC. No. 78 /14.01.001/2012-13

January 29, 2013

The Chairmen / CEOs of all Scheduled Commercial Banks
(Excluding RRBs)/Local Area Banks / All India Financial Institutions

Dear Sir,

Know Your Customer (KYC) Norms /Anti-Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT)/Obligation of banks under Prevention of Money Laundering Act (PMLA), 2002
Please refer to our circular DBOD.AML.BC. No. 65/14.01.001/ 2012-13 dated December 10, 2012 on simplification of Know Your Customer (KYC) norms / Anti-Money Laundering (AML) Standards/Combating of Financing of Terrorism (CFT)/Obligation of banks under PMLA, 2002. With a view to further easing the KYC process for the general public, especially customers who migrate to a new place on account of new job, transfer, etc., it has been decided to effect the following modifications to the existing instructions.

2. Shifting of bank accounts to another centre – Proof of address: Banks were advised vide circular DBOD.AML.BC.No. 97/14.01.001/2011-12 dated April 27, 2012, that KYC once done by one branch of the bank should be valid for transfer of the account within the bank as long as full KYC had been done for the concerned account. The customer should be allowed to transfer his account from one branch to another branch without restrictions.In order to comply with KYC requirements of correct address of the person, fresh address proof has to be obtained from him/her upon such transfer by the transferee branch. However, a large number of customers with transferable jobs or those who migrate for jobs are unable to produce a utility bill or other documents in their name as address proof immediately after relocating. In view of this, it has been decided that:

1.Banks may transfer existing accounts at the transferor branch to the transferee branch without insisting on fresh proof of address and on the basis of a self-declaration from the account holder about his/her current address, subject to submitting proof of address within a period of six months.

2.Banks may also accept rent agreement duly registered with State Government or similar registration authority indicating the address of the customer, in addition to other documents listed as proof of address in Annex I of our Master Circular on KYC/AML/CFT dated July 2, 2012.

3. Banks should intimate their customers that in the event of change in address due to relocation or any other reason, they should intimate the new address to the bank within two weeks of such a change. While opening new accounts and while periodically updating KYC data as required in terms of para 2.4 (g) of the Master Circular, an undertaking to this effect should be obtained. In all these cases customers will have to produce proof of address as mentioned at (a) and (b) above.

4. Banks may revise their KYC policy in the light of the above instructions and ensure strict adherence to the same.

Yours faithfully,

(Deepak Singhal)
Chief General Manager-in-Charge

According to the data available with the DESME, North Sikkim has generated the least percentage of Aadhaar cards with 57.11 percent [24,756 people] of the population covered followed by South with 77.23 percent [1,13,330]. West Sikkim has recorded the highest percentage of Aadhaar cards generated with 86.15 percent [1,17,416 ] followed by East district with 80.85 percent [2,27,419 nos] . According to Election Department,Sikkim, voters in Sikkim are at 3,46,763, and As per AAADHAR population of Sikkim is estimated at apprx 6 lacs.

Sikkim Legislative Assemby today adopted  three Private Member’s Business, Resolution No. 1 of 2013 moved by Mrs Tulsi Devi Rai, Member on ‘Seeking reservation of seats for Limboo-Tamang Tribal Communities in the State Legislative Assembly of Sikkim’ which was seconded by member, Mr Madan Cintury.

Another Resolution No. 2 of 2013 moved by Member Mr. Ugen T. Gyatso Bhutia  on ‘Seeking equality among all Sikkimese Communities in categorization of Scheduled Tribes Status’ was  seconded by the member Mr P. L Subba.

 Mr. Tenzi Sherpa, the member of the house moved Resolution No. 3 of 2013 on ‘Seeking protection of the Sikkim Companies Act, 1961’ which was seconded by the  member Mr  T.W.Lepcha.

Aadhar will not dilute sanctity of Sikkim Subject Certificates or CoIs, DESME reassures

WORKSHOP HELD ON AADHAAR ENABLED DIRECT CASH TRANSFER STRATEGY AND IMPLEMENTATION

VISHNU NEOPANEY
GANGTOK, 28 Jan: “The implementation of Aadhaar Card, Unique Identification Authority of India will not dilute the sanctity of Sikkim Subject Certificates or Certificates of Identification preserved under the Old Laws of Sikkim guaranteed under the 371F of the Constitution,” reassured Director, Department of Economics, Statistics, Monitoring and Evaluation [DESME], SD Tshering today at Chintan Bhawan.
He was speaking at the inaugural session of a workshop on Aadhaar-enabled direct cash transfer strategy and implementation organized by DESME with District Nodal Officers, Block Development Officers and Gram Panchayats. It may be recalled that a section of the Opposition here has been opposing the implementation of Aadhar Cards in Sikkim claiming that these dilute the significance and sanctity of SSCs and CoIs. The DESME Director dismissed such charges outright.
“This card will only enable and help the government departments and agencies identify and verify the genuine beneficiaries,” he said.
He stressed that people should not be confused on the issue of Aadhar cards and SSC or CoI adding that there is no conspiracy to tamper with or dilute Sikkim’s identity and Old Laws protected by the Constitution of India.
The Government of India has directed them to implement 10 schemes out of 34 in Sikkim by 01 February, next month and enable beneficiaries to receive direct benefits of the government schemes without any middlemen or lengthy processes, explained Mr Tshering.
He informed that Sikkim has completed nearly 80 percent of enrolment and that direct cash transfer will be implemented in two districts - East and West Sikkim - which have the highest number of UIDs generated.
Seven schemes of the Ministry of Social Justice, three of Human Resource Development Ministry, Tribal Affairs and one under Health & Family Welfare will come under direct cash transfer schemes in Sikkim in the first phase. These schemes are mostly scholarships for students and special girl child Janani Suraksya Yojana.
According to the data available with the DESME, North Sikkim has generated the least percentage of Aadhaar cards with 57.11 percent [24,756 people] of the population covered followed by South with 77.23 percent [1,13,330]. West Sikkim has recorded the highest percentage of Aadhaar cards generated with 86.15 percent [1,17,416 ] followed by East district with 80.85 percent [2,27,419 nos].
Under the existing system, the Central government transfers the welfare schemes to the State exchequer which then proceeds to beneficiaries. This is a long process. However, with the implementation of direct cash transfer enabled by the Aadhaar Card numbers with core banking system, the beneficiaries will receive direct benefits into their bank accounts without delay or mismanagement, said Mr Tshering.
He added that the BDOs and Gram Panchayats play a crucial role in the implementation of Aadhar card and direct cash transfer and urged them to perform their duties responsibly.
Direct cash transfer will be implemented in 51 districts of the Northeast Region by 01 February

His Excellency, The Governor of Sikkim's address on the Republic Day

Gangtok, the 26^th January, 2013

My dear fellow citizens,

          On our auspicious Republic Day, I convey my warm greetings to every citizen across the State and the Nation.

        On this occasion, I greet members of the Armed Forces and the Para-Military Forces who valiantly guard our frontiers in unfriendly terrain and adverse weather conditions throughout the year. It is due to their vigil that we sleep peacefully during the night and carry out our duties in fields, offices and factories. Let us place on record our deep sense of gratitude to the members of our security forces who make the supreme sacrifice to maintain the security and integrity of our Nation. 

          As we observe and celebrate yet another anniversary of our Republic with a deep sense of hope and confidence in our future, let us recall with reverence and gratitude the sacrifices made by our valiant freedom fighters. Let us humbly pay our homage to the illustrious leaders of our national movement who fought relentlessly for the cause of securing freedom.

          Today, let us salute the framers of our Constitution and the founding fathers of our Republic. Their wisdom, maturity and vision which have gone into the formulation of the Constitution constitute an eternal guide for proper functioning of parliamentary democracy in the country. We are indeed indebted to them.

          India justifiably takes pride in having a constitutional framework that is worthy of emulation. In fact, several developing countries have taken our Constitution as a model in the making of their own constitutional frameworks.

          On 26^th  January, 1950, ‘WE, THE PEOPLE OF INDIA’, constituted India into a ‘Sovereign, Democratic Republic’.  This was not a product of any violent political uprising. It was the culmination of a non-violent revolution that engulfed India under the leadership of Mahatma Gandhi, “the Father of the Nation”.

          The establishment of the Republic of India was a unique event in our history. This means ours is a government of the people, by the people and for the people. For purposes of governance, we have chosen the parliamentary system. The people of India use their sovereign power at the centre through their representatives in Parliament and in the states through their representatives in the Legislatures.

          Another important aspect of our constitution is its federal character, although considerable authority was granted to the Union of India. The very first article, Article 1 declares: ‘India that is Bharat, shall be a Union of States’.

          The Constitution of India was one of the principal attractions to the people of Sikkim when they decided to join the National mainstream on 16^th May, 1975. This process of “merger”, as it is popularly called, exemplified the strength of our Constitution and the wisdom of its architects.

        In many ways, Sikkim has shown how democracy can secure for citizens all- round development and effectively act for removal of poverty, illiteracy and for facilitating proper health care to every citizen. Dialogue and democratic processes have also helped in the maintenance of peace and harmony in the State.

  

Dear Brothers and Sisters,

    Since 1975, Sikkim has moved rapidly on the path of sustainable and inclusive economic development. Our Per Capita Income is rising rapidly. During 2011-12, it stood significantly higher than the national average. As per the report of the Planning Commission of India, Sikkim had recorded the highest Gross State Domestic Product (GSDP) growth-rate among all States and Union Territories during the 11^th Plan period.

Democracy is at the centre of development in Sikkim. It is only through your participation and the energetic efforts of the Government agencies that we can create sustainable and inclusive development in all-important areas of our economic and social activity.

          We have now entered the first year of our 12^th  Five Year Plan.  Our vision for the 12^th Five Year Plan is in agreement with the guidelines approved by the National Development Council recently. We have set ambitious targets. Our agencies would be required to work with dedication for the efficient implementation of various welfare programmes in cooperation with Panchayats and other elected representatives of the people.

          With single-minded perseverance and a positive outlook, I believe Sikkim will meet all the parameters set forth in the 12^th  Plan. This will further deepen the process of all-encompassing development in the State.

Education holds the key to our future. The educational system in Sikkim has witnessed an enormous expansion in recent years. The State has devolved 20 percent of its plan allocation on human resource development. Decentralized planning and the involvement of Panchayati Raj Institutions in the management of schools will further accelerate the process of educational expansion in the remote areas of the State.

          I take this opportunity to warmly congratulate all of you for the peaceful manner in which Panchayat elections were conducted last year. In this election, 50 percent of seats at the Gram and Zilla Panchayat levels were reserved for women, including in the positions of Adhyaksha and Up-adhayaksha.

          The newly-elected Adhyakshas and Up- Adhyakshas of the Zilla Panchayats of Sikkim called on me recently. They have assured me that they will work with renewed vigour in securing cent percent enrollment in schools. They will also keep vigil in order that there is no drop-out from schools. Towards this, they will adopt such imaginative and friendly measures that the parents are encouraged to keep their children in their respective schools, and not engage them in household affairs. We have decided to honour such representatives of the people whose singular services would help secure universal literacy in the State.

          We are conscious of the fact that along with proficiency in general education, the youth are required to be imparted with skills. This would enhance their employability potential and enable them to contribute meaningfully to manufacturing and service sectors of the economy.

With regard to capacity building and skill-development, we now have a fully functional Directorate of Capacity Building at Gangtok and an Institute of Capacity Building at Jorethang.  We have also established 41 livelihood schools across the State. All these institutions are imparting training and facilitating transfer of knowledge to a large number of youth in the State. These centres provide training in various trades and professions ranging from carpentry to basic engineering. Our capacity building and skill-development initiative has met with success.

          In the healthcare sector, we have initiated the Chief Minister’s Comprehensive Annual and Total Check-Up for Healthy Sikkim (CATCH) Programme which is designed to provide annual check-up, as well as preventive and curative care to our citizens. This has the potential to become a path-breaking programme in public healthcare system. However, for the success of the scheme and for it to have a sustainable and visible impact, we have to work towards strengthening its delivery mechanisms.

Priority has been accorded to development of agriculture and horticulture as a large number of our people live in the villages. Attention would be given to the task of enhancement of farm productivity through organic agriculture.  We will continue to work for expansion of areas under organic certification. Cultivation of traditional crops such as cardamom, ginger and oranges too would receive needed support.

          We are organizing the 2^nd  International Flower Show next month. This Flower Show will showcase the State’s nearly 5000 floral species, including its 500 varieties of colorful orchids. It may be recalled that four years ago, the 1^st International Flower Show was held in Sikkim. The event attracted the participation of many international and domestic companies as well as of several State Governments. The objective that then was and continues to be now is to exhibit the State’s floral potential to the world. We intend to surpass our earlier successes. We hope that this Festival would provide a fillip to the floriculture industry and tourism in the State.

          Tourism is one of the fastest growing industries in our State.  The service sector under tourism is the principal employment generator in Sikkim. The State has unsurpassed natural beauty and is inhabited by friendly and hospitable people. We also have a rich cultural heritage and a crime-free atmosphere. These positive factors make Sikkim an ideal destination for tourists.

          In our endeavour to promote pilgrimage tourism in the State, we have put many tourist infrastructures in place like the Buddha Park at Ravangla and the Siddheshawara Dham Complex at Namchi. New tourist infrastructures are also being built, such as the ropeway between Samdruptse to Namchi and the Sleeping Buddha Statue at Singhik in north Sikkim. These will add further value to the existing attractions.

          It is heartening to note that our youth are increasingly getting attracted to job opportunities in the tourism and hospitality sector.

          We are blessed with abundant natural resources. We are harnessing our rivers and streams for generating power. In the coming days, we will be contributing significantly to meet the energy security needs of the country. We hope that this will bring rich financial dividends to the State which will, in turn, fuel rapid economic growth and economic vitality.

          We have to be sensitive to the conservation of our ecology. We have made consistent efforts to protect our glaciers, lakes, streams, rivers, water bodies and medicinal plants.

          We are seriously promoting eco-tourism and have included the concept of eco-friendliness in the curriculum of our schools. We will continue to emphasize on our afforestation programmes such as ‘Smriti Van’ and the unique “10 Minutes to Earth,” which is a programme that carries out mass plantations through active public participation in the month of June every year. The State Green Mission to plant trees and flowers in vacant lands will also be pursued during the 12^th Plan.

          As we use our natural resources for our development, we must observe utmost restraint so that the environment receives least damage. We should keep in mind that ours is a State whose cultural ethos is built around respect for nature and the world around us.

Dear Brothers and Sisters,

          Connectivity is the biggest challenge for development. In the absence of rail and air network, the State is solely dependent on National Highway 31A for transportation of people and freights. With the small size of local markets, the success of attracting private investments crucially depends on all-weather road network. 

          The widening and improvement of National Highway 31A is currently in progress, but the need for an alternative highway from Sevoke to Gangtok is urgent. We also require a new two-lane road from the upcoming Airport at Pakyong for its linkage to Gangtok. We are aware of the urgency to strengthen the existing transportation network throughout the State in order to inter-link our villages and towns, as these are essential to promote tourism and support the economic and social needs of our people. We intend to complete the spillover of road construction projects from the last plan period during the 12^th Plan.

          Rapid unregulated urbanization is a major concern for our State. Unplanned growth and rise in population in the towns and cities create severe pressure on the existing infrastructure. We plan to take up urban development programmes in a phased manner. We also propose to develop and beautify all the bazaars and provide every civic amenity in our rural areas.

          In recent times, crimes against women have caught the attention of the country. It has touched the conscience of millions of our people, both men and women. Several of them have risen up in unison against gender crimes and prejudices in a spontaneous manner.

          We have a rich tradition of showing respect to women. The advent of consumerism in our midst has brought in commodity culture, debasing our age-old values.

          Corrective measures need to be taken urgently. We have to resolutely work to construct a secure social environment for our women and young girls in order that they can pursue their activities in schools, colleges and at work-places freely and without any harassment. It is our individual and collective responsibility to provide them an environment wherein they can live their lives without fear and discrimination. Empowerment of women through coordinated implementation of women-related programmes would be required to be devised with imagination and in consultation with women leaders. Deterring legislation, gender sensitization of law enforcement and police personnel, as also tightening of judicial system, are the needs of the hour.

  

Dear Brothers and Sisters,

          Sikkim has been hailed as a leader in development among the smaller states of the Indian Union. Credit for this achievement must go to the people of Sikkim for their faith and cooperation as stakeholders in the effective execution of schemes and policies of the Government. This affirms the strength of our democracy and harmonious centre-state relations.

          We are on a journey of social harmony and economic progress. People and government have to act in unison and shed negative attitudes.

          Let us pledge to work together with earnestness.  Let peace, harmony and development continue to be Sikkim’s distinctive features towards which we should continue to make sustained efforts.

****  JAI     HIND ****

HCM-Sikkim’s Message to the people on 64th Republic day

64^th Republic Day

January 26, 2013

HCM’s Message to the people

Respected fellow citizens

On the auspicious occasion of the 64^th Republic Day of the Country, I convey my heartiest greetings and best wishes to the people of Sikkim and to my fellow countrymen. This is an occasion for all of us to re-dedicate ourselves to the ideals enshrined in the Constitution.  You are aware that the principles of Liberty, Equality and Fraternity, as epitomized in our constitution have been fully established in the State, making Sikkim as one of the most progressive States of the Indian Union.

In Sikkim, Democracy has taken deep roots which entails peaceful resolution of all differences through due coordination and consultation and also enough space to register protest in a democratic manner. Through a long process of democratic exercise, we have built a strong society that prospers on the essential human values of mutual friendship, tolerance and harmony. Let me also congratulate my fellow Sikkimese for their contribution and support to the State Government to carry forward all the development initiatives under the larger framework of our Constitution.

You are aware that after the transition of the 1975 into a democratic State, we have finally attained maturity to provide effective governance with emphasis on empowering the grassroot people and the involvement of the civil society in the development process. The vision of empowering the less empowered economically, socially, politically through democratic decentralization and forging strong partnership with agents of change and development like the Panchayati Raj Institutions and community based organizations have been achieved.

Although, we joined the mainstream development process only in 1975, Sikkim’s contribution towards nation building has been immense, both in terms of promoting long term peace and processing many innovative development models appropriate to country’s demography. As we prepare to enter into the 12^th Plan period, Sikkim’s growth saga during the last 11^th Plan continued unhampered. In fact, the State has averaged an annual growth of 12.6 percent over the last eight years, which is very impressive in the face of global economic meltdown affecting Country’s economic growth projection.

Respected fellow Sikkimese

With the sacred responsibility bestowed upon us by our Constitution and the privilege inherent in a democracy, we have consistently tried to uphold the values and principles of the democratic nation. Today, Sikkim marches shoulder to shoulder with other constituent states to attain self-reliance and ultimate freedom in the absolute sense. During finalization of 12^th Plan document, we cooperated fully with the central government to adopt a more tangible and tenable development programs for the next five years. Broadly speaking, Sikkim’s vision during the 12^th Plan is in agreement with the guidelines of the Government of India.

Our focus will continue to remain to consolidate on our progress made so far which also encompass upgradation of skills with modern technological inputs for the youth. Human resource development, eco-tourism, hydro power, horticulture and floriculture have been identified as the thrust of my government to generate employment in diverse sectors which are viable in Sikkim. At the same time we will also take up more development programmes which are in consonance with the Government of India policies based on the State’s natural resources without however compromising on the ecology and the environment.

The State Government has made progress in the social sectors of basic health care and elementary education. A basic indicator of development is reflected in the high GDP growth rate and per capita income of the people. The State of Sikkim continues to be peaceful and its people god fearing and law abiding. There is a good track record on gender related issues and there is ready help and respect for the weak and downtrodden. Sikkim has one of the best records in the country in maintaining peace and harmonious relationship amongst various segments of the society, irrespective of caste, creed, religion and community.

We have realised that in order to fulfil Gandhiji’s dream of gram swaraj, there has to be an integrated approach in the developmental process involving all agents of social change. We have initiated the process of involving village panchayats in the spread, implementation and sustainability of our developmental agenda. Attention has been laid in development of the villages and the process of decentralization has been put in place. With the establishment of 29 BACs the administration has been brought to the doorsteps of the villagers for easy access to essential public services.  

Empowerment of women is another priority of my government. 50% of seats for women are reserved under the Panchayati Raj System. In fact, Sikkim is one of the first States in the country to have created this landmark policy of reservation for the women. As a result of this policy today we have 2 women Adhakshyas and 2 Upadhakshyas among the total of four. I would like to congratulate these functionaries and urge them to work hard to take the State towards further progress and development.

The rural development sector has played a critical role in transforming the lives of the rural people through many innovative programmes launched by the Government which has brought down the poverty level to less than 13 percent today, which is relative in terms and extreme poverty is non-existent in the State.

Through the launch of Chief Minister’s Rural Housing Mission, we are moving ahead with an ambitious target to make Sikkim a kutcha house free state by 2015. This scheme introduced in the later part of 11^th Plan will continue and during the course of the 12^th Five Year Plan we shall endeavor to build another 8300 houses to be distributed among the targeted beneficiaries.

We will continue to lay focus on development of human capital and we must take action for more efficient utilization of both capital and human resource. Today the literacy rate of the State stands at 82.2% but we have a larger mission of making Sikkim 100% literate State by end of the 12^th Five Year Plan. The policy of the Government of devolving 20% of the plan outlay to the HRD Sector is slowly showing results. Massive incentives have been provided in the elementary and in the higher education. Improvement of quality education and better delivery of services in the HRD Sector is a major concern. Sikkim has one Central University and 4 Private Universities that provide higher education in the State.

From this year we have started another innovative programme which is the State’s sponsorship for Civil Services Coaching. We have sent 146 educated Sikkimese for undergoing coaching in renowned Institutes of Hyderabad, Delhi and Tamil Nadu. In future it is hoped many young Sikkimese will make a mark in the All India Services and Central Civil Services. Similarly, we would facilitate coaching for joining the Defence Services, Banking Services, Secretariat Services etc.

The skill development programme initiated by the State Government in the year 2003 is a continuing process. Regular training and skilled development is critical for employment worldwide. There is a need for action in many key areas in order to ensure that skill development takes place in a demand driven manner. Skill development has to be re-oriented to meet the demands of the employer/industry, and also align it with the available self-employment opportunities within and outside the State.

The State Institute of Capacity Building at Karfectar, Jorethang has been instrumental in providing world class training and transfer of knowledge for building stronger capacities to a large number of educated and unemployed youth of the State. Initially the Directorate of Capacity Building has also assisted in sponsoring the youth outside the State for various training programmes. The Capacity Building and the Skill Development Programme of the Government has met with commendable success with placement of over 70% in the hospitality sector alone.

Forty one Livelihood Schools have been established throughout the State and are functional. These schools are training local youth in various professions like carpentry and basic engineering in order to meet the man power requirement of the small scale industrial units and the hydro power projects installed in Sikkim.

The idea has been to channelize youth power and energy in creative and constructive enterprises, making them more responsible and accountable.

The 21^st century world is littered with multitudes of challenges and people’s demands and aspirations have increased by manifolds. Therefore, we need to revamp our work culture and reform our education policy to bring about balanced integration to our approach towards progress and development. We have to make our people more skilful, hard working, sincere and open to new ideas. They should be willing to learn more and absorb the best practice of development worldwide. The younger population must come forward to make themselves capable and meritorious to be able to face modern challenges with élan and full confidence. The government will continue to further consolidate all our youth-centric development thrusts so that all educated Sikkimese are provided with maximum space and large number of economic opportunities to earn their living.    

Tourism industry worldwide has emerged as the second biggest industry generating huge employment opportunities. Tourism, hospitality, and construction in the service sector are important sources of employment and growth therefore, the tourism and hospitality sector has a major role in promoting faster sustainable and more inclusive economic growth in the State.

Nature has been kind and bestowed the State with unique beauty, with lofty mountains, lush green forest, undisturbed valleys and abundant flora and fauna and a eco-friendly environment. The hospitable and friendly people, and its rich cultural heritage, a politically stable government, make Sikkim an ideal tourist destination. Peace, tranquillity, and security have remained our forte. Tourism industry in the State has become an important and a high growth sector. The vision of my government is to increase tourism footfall to 50 lakhs by end of 2015 into Sikkim.

The pilgrimage and cultural centre with the Statue of Lord Buddha is awaiting inauguration at Ravangla. The Siddeshwar Dham Complex at Solophok, and the Kanchendzonga Tourist Villa cum Socio Cultural Amusement Park at Ranka have added extra options to tourists seeking spiritual enlightenment. We have many tourist attractions (projects) in the pipeline like the Skywalk at Bhaleydunga, the Sleeping Buddha at Singik, North Sikkim which will be built in due course of time.

The State is part of the rich bio-diversity hotspots of the world. We have always given top priority towards protection of the flora, fauna, wildlife, forests and the natural resources in the State. It is our earnest endeavour to protect the mountains, glaciers, lakes, rivers, the water bodies and also the faunal wealth with medicinal properties. It is our endeavor to relentlessly pursue the green goal during the 12^th Five Year Plan while continuing to protect our bio-diversity, forests and wildlife. The existing ban on felling of trees, grazing and use of    non-biodegradable materials in the State are in vogue. The afforestation programmes such as creation of Smriti Ban the State Green Mission is to be continued for posterity.

In this way it will be our contribution in the effort for protection and environmental conservation of the eastern Himalayas. The State initiative known as “10 Minutes to Earth” observed in June 25 every year with public participation along with students has been continuing since 2009-10. It is our earnest effort to keep the State clean, neat and green.

We have made substantial progress in the Health Care Sector. This sector is one of the top priorities of the Government each year. The Infant Mortality Rate (IMR), the Maternal Mortality Rate (MMR), disease prevalence, morbidity as well as mortality rates have shown a decline over the last 15 years. In fact, the Sikkim has been ranked fourth in the Country in terms of  reduction in Infant Mortality rate. I am happy to record that all central health related programmes such as the National Rural Health Mission (NRHM), HIV/AIDS etc. are being carried out without any hindrances. The life expectancy in the State has increased by over 3-5 years on average as compared to 1994.

The work for construction of the 575 bedded Multi Specialty Hospital at Sichey Basti has already commenced. My Government is keen that the hospital will also serve as a Medical College once the required infrastructure is in place. The goal of my Government is to make available the best medical facilities and treatment to the people of Sikkim within the State and also at an affordable cost.

Organic farming has become the buzz word across the Country after our humble beginning to transform Sikkim into the first total organic state in the Country. Besides featuring our success stories at the Satya Meya Jayate TV show, this has generated worldwide curiosity among educationists, scientists and the farming communities to tread our path and adopt our own model. This is an economically viable occupation and because of the diverse climatic condition in Sikkim large varieties of agricultural products can be cultivated throughout the year fetching competitive prices in the world markets. My Government has made all efforts in encouraging the youth to take up organic farming and make it sustainable source of income and livelihood.

We will continue to lay focus on generation of electricity which has huge scope for earning good revenue. It will help the State in providing employment and also provide energy security to the State. Sikkim has an estimated 8000 MW hydro-power potential. The expected installed capacity by end of 12^th Five Year Plan is 3774.50MW. We are strengthening the transmission system for evacuation of power and also implement and complete the R-APDRP works in Gangtok and Tadong and also the village electrification works under RGGVY during the 12^th Plan Period.

Fellow Sikkimese

Sikkim over the decade has emerged as a model state, the catalyst, the inventor and propagator of so many new and innovative development models across sector. Today we are leader in terms of social development, cultural enrichment, human capital formation, capacity building, rural prosperity, environmental protection to achieve the end result of human happiness across the spectrum. One of our policy thrusts has been harnessing our rich natural resources on sustainable basis. As part of our efforts, we are holding the 2^nd International Flower Festival at Saramsa Garden to showcase our floral wealth to the outside world. The first Flower Festival at the same venue in 2008 had provided huge platform for the international community of flower growers to exchange knowledge and joy across the Continents. With consistency and little bit of hard work, we can take due advantage of our climatic variation and elevation to grow exotic flowers round the year and earn hefty economic dividend. This way we can well transform Sikkim into a garden State and a Floricultural State.

We are trying to reach out to larger audience across the Country and the world through all means including tele-conference, press conferences and wider interactions with press and media. We also held the Curtain Raiser function in New Delhi on December 28, 2013, inviting delegates and representatives from all foreign embassies, all state governments, central government officials and mainstream media. Let me call upon all my fellow Sikkimese to actively participate in this grand event in showcasing our natural endowment.

As provided under our Constitution, we recently concluded panchayat elections to choose grass root functionaries. And the Sikkim Democratic Front party achieved yet another milestone registering over 96 percentage success. During the last panchayat election, we created a landmark provision to provide 50% reservation of seats for women under the Panchayati Raj System. Today, we have 50% of women occupying panchayat seats at the gram panchayat, zilla panchayat level and in the post of Adhyakshya and Upa-adhayakshya under the reservation policy. Through effective process of decentralization, we have devolved both administrative and financial power to the grass root functionaries. What remains to be seen is corresponding sharing of responsibility and accountability by each one of us, be they panchayats, government officials and other public representatives. 

Now this is time for shouldering greater responsibility by each one of us. Under the Constitution, the state government has its role and responsibility. So is the case with panchayats and other government officials. They are the custodians to provide better living condition and environment of growth at the village level. Therefore, I call upon all of you to strengthen the sense of responsibility on our part and participate in greater measures in the state and nation building task.

Helen Keller once said “I find life an exciting business – and most exciting when it is lived for others”.  Empowered as we are by the Constitution, let us make our lives most exciting through dedication and commitment at different level and work as per policy formulation of the Government from time to time for greater good and well being of our people.

I am of the firm opinion that as citizens of this great Country, we must shoulder our responsibility and duties towards the betterment of country under all circumstances. If we are able to live as true citizens with greater responsibility, this will be the best form of worship and service to nation that we can ever think of. Therefore, may I call upon my fellow citizens to live with greater responsibility and as true patriot to be able to provide highest service to the Nation and to our Motherland.

Sikkim state is being recognized one after the other at the regional, national and international level for its development strides. We were recently honoured with the best state in Education, Water and sanitation, citizen security and environment and best overall state in small state category. I congratulate my fellow Sikkimese for all the achievements conferred on the State and for earning a distinct edge over others, in the wide socio-economic spheres.

The Country and the world itself, are going through a rough sail and left with tough choices to boost economy and improve the living condition of people. Our own country’s GDP growth projection for the next fiscal is a humble 5 percent and we have big task ahead to narrow down fiscal deficit. In fact, the most powerful nation, the United States of America, itself is struggling to salvage the country’s economy from ‘fiscal cliff’. Sounding more optimistic, the President has reassured the Americans about economic recovery which is beginning to happen.

Under the circumstances and at times which is globally challenging, I am confident that the Country through the spirit of its Constitution and the power of the billionth plus population will successfully achieve economic stability, social cohesion and citizens’ security. What is essential is collective resolve to further strengthen and cement the fabric of democratic forces, the coming together of democratic elements to put up collective resistance to anti-democratic and anti-social forces and thereby provide full-proof security to the citizens in the Country at large.

And towards that objective, Sikkim will continue to stand tall and contribute towards national prosperity with its own development programs, strengthening our civilizational legacy to live together as brothers and sisters in amity, peace and consideration for each other.

Respected fellow Sikkimese

We are accomplished citizens to discover new opportunities and walk the untrodden paths leading to newer prosperity and happiness and engage in the best development discourse in the given time and circumstances in the true spirit and framework of our Constitution. Let us once again rededicate ourselves as servants of the people at this great occasion where lie our progress and prosperity.

Thank you

Jai Hind

  

Notice u/s. 148 can be issued on a company registered anywhere in respect of income earned in India

Notice to company registered in Sikkim – A notice under section 148 can be validly issued on a company, if it is in respect of income which is stated to have arisen in India, even though the registered office of the company is situated in Sikkim – Alankar Commercial (P.) Ltd. v. ACIT [2000] 244 ITR 31 (SC).

[2000] 244 ITR 31 (SC)

SUPREME COURT OF INDIA

Alankar Commercial Pvt. Ltd.

v.

Assistant Commissioner of Income-tax

B.N.KIRPAL AND S. RAJENDRA BABU, JJ.

SPECIAL LEAVE TO APPEAL (CIVIL) NO. 17435 OF 1999

DECEMBER 6, 1999

JUDGMENT

It is contended that Sikkim was not a part of India and at that time the Income-tax Act was not applicable in respect of the assessment year for which notice was served at New Delhi. Learned counsel for the petitioner relies upon the decision of this court in State of Sikkim v. Surendra Prasad Sharma [1994] AIR 1994 SC 2342.

The aforesaid decision in Surendra Prasad Sharma’s case [1994] AIR 1994 SC 2342, related to the employees employed in a company in Sikkim and the question which arose there was whether the Indian law applied or not. The question of applicability of the Income-tax Act did not arise in that case, therefore, the said decision has no relevance. The Indian Income-tax Act, inter alia, taxes income which accrues or arises in India. It is immaterial whether the petitioner company has its head office in Sikkim or may be carrying on business activities there. The impugned notice under section 148 of the Income-tax Act has been issued in relation to the income which is stated to have arisen in India and this can be done even if the petitioner has a company registered in Sikkim. The decision of the High Court calls for no interference.

The petition for special leave is dismAissed.

TAAS takes Sikkim to Vibrant Gujarat 2013

GANGTOK, 18 Jan: ( Source Sikkim Now)

Following an official invitation from Government of Gujarat, two representatives from Travel Agent’s Association of Sikkim [TAAS] attended Vibrant Gujarat 2013 - The sixth Global Summit from 11 to 13 January in Gujarat.
A TAAS release informs that the Association was represented by general secretary, Barap Namgyal and secretary (North), Karma Palgey Lachungpa who interacted with dignitaries from different parts of the world. The TAAS representatives highlighted the tourism potential and products of Sikkim tourism industry and made a presentation on plans and policies of Government of Sikkim in making tourism a vibrant and propriety Industry in Sikkim.
The Vibrant Gujarat 2013 Summit has become an example of the visionary approach of the Government of Gujarat towards inclusive and sustainable development. The sixth Global summit provided enormous prospects to the state to display its strengths, progressive stand, initiatives taken to improve governance, investor friendly climate and art and culture of Gujarat, the release mentions.
The Chief Minister of Gujarat, Narendra Modi, in a short interaction with TAAS representatives appreciated the effort of Chef Minister, Pawan Chamling and his government in shaping “Char Dham” as a pilgrimage tourism destination in India “where most of the people from Gujarat will come to seek blessing in the peaceful State of Sikkim”, the release informs.
TAAS representatives extended an invitation to Mr Modi to visit Sikkim who also shared his idea of opening a “Sikkim Tourism” office in Gujarat.
Inclusive development being the prime focus, the key areas for development identified during the summit included: Innovation, Sustainability, Youth and Skill Development, Knowledge Sharing and Tourism Networking.
While appreciating the TAAS participation, the Gujarat government mentioned that every Sikkimese has an identity because Sikkim has been a leading state so far amongst the North East States in tourism which is a result of equal participation from both the Government and private sector of Sikkim.
At the Vibrant Gujarat 2013 Summit, the Gujarat government planned a number of events in the form of seminars, conventions, panel discussions, lecture series, exhibitions and other innovative forums for discussions, brainstorming sessions and interactions. The events were carefully planned to reach out to a larger audience and provide a common platform to think-tanks, academia, industrialists and government officials to analyse and suggest avenues for Gujarat to take leadership roles especially in the field of innovation and sustainability.
The Vibrant Gujarat 2013 Summit was transformational and revolutionary – both in its coverage and scale. It provided a platform for various states of India and other countries to cooperate and explore attractive business opportunities.
A total of 2,100 delegates from 121 countries attending 127 seminars on different topics and establishing of 2,670 strategic partnership intentions is a rare achievement, the release states.
With the Vibrant Gujarat 2013 Summit, ‘Brand Gujarat’ established bonding with people from around the globe where TAAS was pro-active in highlighting the PPP mode between Government and people of Sikkim.
TAAS will be actively deputing more members to attend various Tourism related fairs and seminars such as SATTE, TTF, Buyer’s & Sellers meet and Tourism Road shows to recover the loss incurred by the 2011 Earthquake and last year’s flash flood in North Sikkim and also to further promote the State of Sikkim in new & potential tourism markets, the release further mentions.

Here are six terrific truths about time:

First: Nobody can manage time. But you can manage those things that take up your time.

Second: Time is expensive. As a matter of fact, 80 percent of our day is spent on those things or those people that only bring us two percent of our results.

Third: Time is perishable. It cannot be saved for later use.

Fourth: Time is measurable. Everybody has the same amount of time...pauper or king. It is not how much time you have; it is how much you use.

Fifth: Time is irreplaceable. We never make back time once it is gone.

Sixth: Time is a priority. You have enough time for anything in the world, so long as it ranks high enough among your priorities.

Little known schemes u/s. 80C of Income Tax Act

If an individual falls in the 30% tax bracket and has exhausted the maximum limit of Sec 80C, one can save Rs 30,900 in taxes.  We runs you through the provisions of Section 80C. However, we highlight those schemes that are little known and which many investors avail of sparingly.
Stamp duty and registration charges

The first and foremost provision that many taxpayers are not aware of is stamp duty and registration charges. According to the law, ‘the amount paid towards stamp duty, registration fees and other expenses for the purpose of transfer of house property to the owner also qualifies for tax exemption’. This is over and above the principal payment that qualifies under Section 80C. But deduction u/s. 80C for  total amount including Principal Loan Repayment and stamp duty and registration charges can not exceed Rs. One Lakh.

Exemption for interest payment towards home loan is permissible under another section hence the above limit of Rs 1 lakh does not apply to it.

Let us take an example, Mr A purchases a house property of Rs 32 lakh and takes a home loan of Rs 25 lakh at 10%. His stamp duty and registration charges on this work out to approximately Rs 1.75 lakh. The interest for the first year comes to Rs 2.48 lakh and principal payment comes to Rs 41,376.

Thus, Mr A can claim maximum tax exemption of Rs 1.5 lakh on his interest payment under Sec 24. The entire principal payment (not more than Rs 1 lakh) of Rs 41,376 can be claimed under Sec 80C.

Nonetheless, it still leaves Rs 58,624 to be invested in other tax-saving instruments to reduce overall tax liability. In reality, buying a house is quite often an expensive affair, leaving little cash with the homebuyer. On top of it, if one has to make additional investment to save on tax, it becomes difficult.

But with the inclusion of registration and stamp duty fees under Section 80C, it not only reduces tax liability but also saves the property buyer from further cash outgo.

Fixed-deposit with HUDCO or any housing board
Another provision that would be eligible for exemption under Section 80C is ‘any sum paid towards fixed-deposit schemes of HUDCO or to any housing board, which is constituted in India for the purpose of planning, development or improvement of cities or towns’.

Typically, these schemes are promoted by state housing boards to promote long-term social sector objectives, or for infrastructure development of city.  In fact, principal payment towards home loans taken from Housing and Urban Development Corporation (HUDCO) also qualifies for exemption under Sec 80C.

Even subscription to a home loan account scheme of the National Housing Bank (NHB) or contribution to any notified pension fund set up by the NHB also meet the requirements. Hence, if these two offer home loans at competitive rates, one can avail loan from them as well.

Contribution to a non-commutable deferred annuity plan


Further, contribution to a non-commutable deferred annuity plan is also an option to avail tax exemption. In normal parlance, this is nothing but a standard pension plan eligible for tax exemption under Section 80C.

This includes schemes such as Jeevan Suraksha by LIC or Pension Plus plan by HDFC Standard Life. Contribution to an approved superannuation fund is also a way to claim tax benefit.

Typically, large organisations maintain superannuation funds and contribute to them. In case employees want to make a higher contribution; they can do so to the extent of 15% of basic plus dearness allowance. Besides these lesser-known options, the other commonly used options are contribution to employee provident fund, life insurance premium, or payment of tuition fees. Five-year tax saving fixed deposits issued by banks can also be bought.

With a 6-7 .75% quarterly compounding interest rate, these FD’s have an edge over NSC with a one-year lesser lock-in period. However, the NSC has an edge because of the fact that interest accrued is also eligible for 80 C limit for the first five years that is not the case with FDs.

Equity-linked savings scheme MF or Ulips
Besides, these low risk options, one can go for high-risk return schemes such as equity-linked savings scheme MF or even Ulips. ELSS usually provides a higher return in the long run than small savings schemes and carries a lower lock-in period of three years.

Small savings schemes offer a lower return of around 8 to 8.5%. Further, there is a relatively long lock-in period -15 years for the PPF and six years for NSC. The advantage with these schemes is that they offer a guaranteed return unlike equity-based products where there is no guaranteed return and one can lose money like when the markets tumbled in 2008.

Risk profile and investment strategy are the key determinants for allocating funds to any scheme. Also, one must consider inflation-adjusted returns before taking a decision.

(Republished with Amendments)

Myths and misconceptions about Personal Income tax

source Tax Guru

Gifts received: Gifts received from specified relatives are exempt from income tax, and there is no upper limit also. Similarly, gifts of any amount and from anyone received during your marriage are totally tax-free. Similar is the case with the gifts received under a Will or by way of an inheritance, or from a registered charitable or education organisation or in contemplation of death of the donor. Also, in case an individual receives any gift from any local authority as specified under the Act, the same would not be taxable.
However, if one gets any other cash gifts from non-relatives exceeding Rs 50,000 in a year, one is required to pay tax on the excess amount exceeding Rs 50,000. Also, earlier, only cash gifts were taxed, but now, with the latest amendments in the I-T laws, even non-cash gifts will be taxed in the hands of the recipient with effect from October 1, 2009. For instance, the scope of the taxability provisions in respect of the gifts has been enlarged to include immovable property, including land or building or both. Besides, certain other gifts received w.e.f. October 1, 2009, has also been brought under the tax net. These include shares and securities, jewellery, archeological collections, drawings, paintings and sculptures as specified under the Act.

Must Read Articles on above:-

Ø   Amendments to Section 56(2) with respect to Deemed Gifts and transfer of movable & immovable property
Ø   Taxability of gift as Income from Other Sources u/s. 56 [2][vii]
Ø   Gifts of property (gifts-in-kind) above value of rs.50,000 become taxable from 1st October 2009
Deduction in respect of Payment off Interest on Housing Loan

Most taxpayers generally believe that the deduction related to interest and repayment of principal housing loan is applicable to one house only. But this is not true. On the contrary, an individual can have more than one housing loan.

In case the individual has two housing loans for two separate house properties and if he resides in one of the houses, then the other house will be considered as deemed to be let out and the deemed rental value will be considered as taxable in the hands of the individual.

Employee is eligible to claim a deduction under Section 80C of the Income-Tax Act for the repayment of the principal amount. However, this amount is limited to a total of Rs 100,000 (inclusive of the other investments). The interest paid on housing loan will be eligible for a deduction up to Rs 150,000 in case of a self-occupied property. However, in case a property is let out or deemed to be let out, then there is no such limit and the actual interest paid on the housing loan is allowed as deduction. This is contrary to the case of a self-occupied property, wherein the maximum interest on housing loan is restricted to Rs 150,000 p.a., subject to certain conditions.


Must Read Articles on above:-

Ø   FAQ on Housing Loan and Income tax benefit
Ø   Taxability of second House under the Income Tax Act,1961
Ø   All about deduction under section 80C and tax planning
Deduction U/s. 80GG for those who paying House rent but not receiving HRA

A tax exemption is available to a salaried employee if he receives house rent allowance (HRA) as part of his compensation from his employer. The exemption is calculated as per the limits prescribed under the law. However, the maximum exemption which can be availed will be equal to the amount of actual HRA received by the employee.

For an individual other than one receiving HRA (whether self employed or otherwise), deduction is available under Section 80GG of the Income Tax Act, 1961 for payment of rent on accommodation. In this case, however, the maximum deduction that can be availed is Rs 2,000 per month or 25 per cent of total income (whichever is less).

Must Read Articles on above:-

Ø   House Rent Allowance (HRA) taxability and working/calculation of taxable HRA
Ø   Get HRA rebate till you move into Your own house
Deduction in respect of Donation U/s. 80G

The belief that all donations are 100% tax-free is not true. True, deduction is available under Section 80G of the I-T Act in respect of donations made by an individual to certain funds, charitable institutions and so on. There is also no restriction on the amount of charity.

The rate of deduction, however, is either 50 or 100 per cent, depending on the choice of trust. Besides, donations must be made to registered institutions only. Also, only donations of up to 10 per cent of your total income qualify for such a deduction.

Must Read Articles on above:-

Ø   All about Deduction under Section 80G of the Income Tax Act, 1961 for donation
Deduction under Section 80C

Under Section 80C benefits, you can get an exemption of up to Rs 1 lakh on contributions to a wide range of investments. These include Employee Provident Fund (EPF), Public Provident Fund (PPF), National Savings Certificate (NSC), 5-year bank fixed deposits, life insurance policies, equity-linked savings schemes (ELSS), and unit linked insurance plans (Ulips), among others.

However, you needn’t always make an investment or save money to avail tax benefits under Section 80C. You can also claim a deduction for the school or university tuition fees you pay for your children provided they are enrolled in a full-time course at any institute in India. Likewise, your home loan principal repayment also qualifies for deduction under the overall limit of Section 80C.

Also, the amount you pay as stamp duty when you buy a house and the amount you pay for the registration of the documents of the house can also be claimed as deduction under section 80C. However, this can be done only in the year of purchase of the house.

Must Read Articles on above:-

Ø   All about deduction under section 80C and tax planning
Ø   Investment covered under section 80C of Income Tax Act, 1961
(Republished with Amendments)