SIKKIM OBSERVER May 14, 2011

IT exemption for pre-merger old Indian settlers in Sikkim still open: Goyal

Observer News Service

Gangtok, May 13: The Centre has decided not to grant income tax exemption to “non-Sikkimese” who have been living in Sikkim for generations.

In response to Prem Goyal, Chief Coordinator of Nagarik Sangharsh Samiti’s plea,  the Department of Revenue, Central Board of Direcst Taxes of the Ministry of Finance, said the issue of IT exemption to those other than Sikkimese (Sikkim Subjects) living in Sikkim was a closed chapter.

In its letter to Goyal, dated Apri 25, 2011, the Finance Ministry has stated that income tax exemption was given to bonafide Sikkimese,  i.e. those who were ‘Sikkim Subjects’ during the Chogyal era, after “a well consulted and considered decision”  during 18 years of “negotiation and consensus.”

“It will not be advisable now to reopen a subject which had been concluded after 18 years of negotiation with consensus,” the letter to Goyal by Vivek Anand Ojha, Under Secretary (TPL-1) of the Department said.

“Therefore, it would not be feasible to include non-Sikkimese under the ambit of exemptions provided by section 10(26AAA) of the Act,” the letter added.

Briefing reporters here today, Goyal said the “chapter for the government on the issue is closed,” as the Centre has decided against the demands made by the Chamling Government on the issue.

However, Goyal said he would continue to pursue the matter with the Central Government and urged the State Government to support him if it is still willing to seek income tax exemption for non-Sikkim Subject Indian nationals, who were settled in Sikkim before the merger on April 26, 1975.