Residents of Sikkim are exempted from income tax under section 10(26AAA) of the Income Tax Act, 1961. That is, the people of the state do not have to pay any tax on their income.
Image Credit source: Social Media
The small state of Northeast India, which is very important from the strategic point of view, is boiling in the fire of agitation these days. People are angry with the Supreme Court’s comment on a petition related to the exemption of income tax to the people of the state. People are angry at the comment that the Nepali community here is called immigrants and are protesting at various places. From the opposition parties to the ruling party are together in this protest. On the silence of the state government, Health Minister Mani Kumar Sharma resigned on February 2.
In its order on a petition related to income tax exemption for Sikkimese residents, the Supreme Court referred to Sikkimese Nepalese (who had immigrated to Sikkim) as persons of ‘foreign origin’. Although this order was issued on January 13, but the comment became public later, after which there is a boil among the people.
However, a review petition has been filed by the state government and the Union Home Ministry to rectify the Supreme Court’s comment on the Nepali community. CM Prem Singh Tamang has given this information on Twitter. Despite this the protests continue. Let us tell you that where income tax is not applicable in Sikkim, there is a ban on buying land for people from other parts of the country in all the states of the Northeast. Such states including Sikkim have got special status under Article 371A of the Constitution.
Nepali is a caste, not a nationality!
Residents of Sikkim are exempted from income tax under section 10(26AAA) of the Income Tax Act, 1961. That is, the people of the state do not have to pay any tax on their income. Earlier this exemption was given to those holding Sikkim subject certificate and their descendants. He was made an Indian citizen under the Sikkim Citizenship Amendment Order, 1989.
But now the Supreme Court has provided the facility of tax exemption for the people of Indian origin living in Sikkim till 26 April 1975 (a day before the merger of Sikkim with India). In such a situation, 95 percent of the population has gone out of the tax net. Earlier people of Indian origin settled in Sikkim had to pay tax. 80 percent of the population here is of Nepali origin, on which the Supreme Court’s comment is being opposed.
Story of Sikkim’s accession to India
The establishment of Sikkim is said to be in 1642. It was merged with India in 1975. That is, it remained sovereign for about 333 years. At the time of establishment, it also included some parts of Bihar, West Bengal, Nepal, Bangladesh and Bhutan, but later after fighting with the British rulers, these parts became part of British India.
At the same time, in 1888, the whole of Sikkim came under the control of the British. However, in 1890, Britain and China signed an agreement to settle the Sikkim and Tibet border disputes. The king/ruler of Sikkim was Chogyal, who issued the Sikkim Income Tax Manual in the year 1948. According to the Indo-Sikkim Peace Agreement in the year 1950, Sikkim came under the protection of India.
Where did the problem start?
To prevent infiltration of foreigners in Sikkim, the Sikkim Subject Register, 1961 was implemented, which included the names of those people who were willing to give up their citizenship of another country and become subjects of Sikkim, apart from the original residents of the state. In the latest case, the 500 families who had filed a petition in the Supreme Court demanding exemption from income tax, had been living in Sikkim for several generations, but had not given up Indian citizenship. In such a situation, according to the existing law, he was not a citizen or subject of Sikkim.
In the year 2008, after prolonged negotiations, the Central Government exempted the people holding Sikkim Subject Certificate and their heirs from income tax. Only after that the old residents took refuge in the court. Hearing these petitions, the Supreme Court, in its decision on January 13, extended income tax exemption to all old residents of Sikkim. During this decision, the Nepali community was called ‘immigrant’, on which people are protesting.
An advocate of the Supreme Court points out that the Sikkim Subject Register, 1961 could also be the basis of the word immigrant for the Nepali community in the court’s comment. However, due to giving up their old nationality and being settled before independence, they can also be called natives of Sikkim.
People protesting say that Nepali is a caste, a community, which has been living in Sikkim for decades. It is not a nationality that they can be called of foreign origin. Calling them immigrants or of foreign origin, raises questions on their existence.
Now what next?
After the Nepali community has been called foreigners, there is a boil among the people and agitations are taking place at various places. Health Minister Mani Kumar Sharma resigned on February 2 in protest against the government’s silence on the Supreme Court’s decision. In view of the unrest among the people of the state and deteriorating peace system, Chief Minister Prem Singh Tamang came to Delhi and met Home Minister Amit Shah and Law Minister Kiren Rijiju. After this, the Center has filed a review petition in the Supreme Court.
Source: www.tv9hindi.com”
