The Hindu Business Line : I-T exemption: Sikkim businessmen to launch Gandhian movement

Peeved at the ‘discriminatory’ attitude of the Centre on the Income Tax exemption issue, the business community of Sikkim has launched a ‘Gandhian’ movement with two demands — exemption from direct income-tax at par with Sikkim subject-holders for the elderly members of the business community and implementation of Income Tax Act, 1961 to Sikkim on a future date for the left-outs.

The ball was set rolling by the Sikkim Chamber of Commerce, which is spearheading the movement for those not exempted, when it gave a memorandum to the Income Tax office (Sikkim division) addressed to the Union Finance Minister.

While submitting the memorandum to officials here, Mr S.K. Sarda, who led a large delegation of the Sikkimese business community, said that the elderly members of the business community who had lived in Sikkim for generations before April 26, 1975 (the day when Sikkim merged with India) should be given tax exemption at par with Sikkimese subject-holders under the Ladakh model.

Earlier this year, the Centre had exempted Sikkim subject-holders from paying direct Income Tax by introducing an amendment to the Finance Bill of 2008. People of Sikkimese origin, having subject-holder status, have been exempted from direct taxes under the 26AAA clause, paving the way for the Act to be enforced in the State.

The era of direct taxes began in Sikkim with the Central Income Tax office beginning operations from August 6. Senior members of the business community, around 400 families, who have lived in pre-merger Sikkim and other people working in the State post-merger represent a huge chunk of those people who do not have Sikkimese subject-status and thus have to cough up taxes now under the Income Tax Act 1961.

The demand for tax exemption has been made to the Governor as well as the Chief Minister.

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I-T exemption: Sikkim businessmen to launch Gandhian movement

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