Fact Check: The whole country is currently facing the process of filing income tax returns. The deadline for filing returns is tomorrow i.e. 31st July. Do you know that even amidst this chaos, there is a state in the country, where the residents are sitting comfortably with their legs stretched out. These people do not need to file returns because they are not charged income tax. There is a lot of discussion about this state on social media these days. When we investigated this claim of income tax free state, we found that it is completely true. Yes, if you are a resident of the beautiful state of Sikkim in the Northeast, then you do not need to pay income tax.
Why is there no income tax?
Sikkim is the only state in the country where people do not have to pay even a single rupee of income tax. Even if their income is crores of rupees. The reason for this is that when Sikkim was merged with India, this condition was also added to it. Due to this, now the people of Sikkim are tax free. The residents of Sikkim have got this special relief under the merger agreement of 1975 and Article 371F of the Constitution. The Income Tax Act, 1961 does not apply to these people.
Penalty will be imposed for filing return after 31st July
According to the Income Tax Act, every citizen with taxable income is required to file income tax returns. So far, more than 5 crore people have filed returns for the financial year 2023-24. According to the Income Tax Department, this number is increasing by lakhs every day. If you do not file the return by the deadline of July 31, then after that you will have to pay a fine ranging from Rs 1000 to Rs 5000. But, people living in Sikkim do not care about these things.
Forget Dubai! Someone get me a residents status for Sikkim🫡
How much will I get brother?😄 pic.twitter.com/lQz0S7FIkU
— The Simple Trader (Aditya Singhania) (@Simple_trader_) July 30, 2024
Income from securities-dividend is also tax free
Sikkim merged with India in 1975. At that time, they had put a condition that they would take special status and follow their old laws. It has been clarified that the residents of Sikkim will remain outside the income tax purview. They also do not have to pay tax on income from securities and dividends. This exemption is available to all those citizens who were residents of Sikkim before the merger. By taking advantage of this tax exemption, business activities and investments can be increased in Sikkim.
read this also
Income Tax: Are you entangled in the illusion of tax exemption and tax deduction? Understand the difference between them
