Despite July 31 being the last date for filing Income Tax Returns (ITR) when the rest of India was busy with the process, the state of Sikkim remained completely free from this chaos. This is because of the special exemption given under Section 10 (26AAA) of the Indian Income Tax Act, which keeps Sikkim exempt from income tax since its merger with India in 1975.
Sikkim is exempted from income tax. Why the exemption?
Before Sikkim joined India, it had a separate tax system and Indian income tax laws were not applicable to its residents. To maintain this system, the government exempted Sikkim from income tax. Under the Union Budget in 2008 "Sikkim Tax Act" was abolished and this exemption was implemented through Section 10(26AAA) of the Income Tax Act. This special exemption was given to maintain the special status of Sikkim under Article 371(f) of the Constitution.
Legal challenge and controversy
2013 In, "Association of Old Settlers of Sikkim" Challenged the constitutionality of Section 10 (26AAA) in the Supreme Court. He argued that "Sikkim" Two groups have been wrongly excluded from the definition. Previously, those Indians who settled in Sikkim before 26 April 1975 but "Sikkim Subjects Register" His name is not there. Secondly, those Sikkimese women who married non-Sikkimese men after April 1, 2008.
Under section 10 (26AAA) "Sikkim" The definition included those who were born before 26 April 1975. "Sikkim Subjects Register" Were registered in this register or whose close relatives were registered in this register. However, this definition kept about 1% of the people settled in Sikkim out of the scope of exemption.
Supreme Court’s decision
The Supreme Court on 1 April The rule of excluding Sikkimese women married to non-Sikkimese men after 2008 from income tax exemption was found to be discriminatory. The court called it a violation of the constitutional right to equality. The court said that this rule is not only unequal, but also weakens the rights of Sikkimese women. This historic decision further strengthens the principle of rights and equality for the residents of Sikkim.
