Sikkim's tax free zone status to expire in 2017

Union Finance minister Pranab Mukherjee said there would be no more tax-free zones in the country.

Tax-free zone status in Himachal Pradesh and Uttarakhand was being withdrawn gradually following opposition by different states, Mukherjee said.

Renewal of tax free zone status of Sikkim, which would expire in 2017, would be reviewed on the basis of the socio-economic conditions of the state at that time, he told reporters.

Mukherjee said that instead of tax free zone, the Centre was considering creating special economic zones in backward districts.

In reply to another question, he said, "India cannot remain unaffected by the negative trend in the global market and it is a reality."

Inaugurating a residential quarter complex and guest house of income tax department, Mukherjee urged IT officials to achieve 10% more collection than the target fixed.

Mukherjee said that the target of income tax collection was fixed at Rs 5,32,000 crore this fiscal as against last year's Rs 4,46,000 crore.

Commenting on North Bengal, he said that Chief Minister Mamata Banerjee had announced different projects and the region would witness enormous developments.

He also expressed hope that the tea garden problem would be resolved with state initiative. Border trade would also expand in the region, he said

Centre refuses I-T exemption for old settlers like Sikkim Subjects

Gangtok: Sikkim Democratic Front government headed by Chief Minister Dr. Pawan Chamling has repeatedly recommended to the central government to exempt the old settlers in Sikkim among businessmen from direct central taxes including income tax as already done for the Sikkim Subjects.

To strengthen the recommendation, the government has also passed a resolution on the issue in the state legislative Assembly in its 2011-12 budget session which raised high hopes in the business community here.

However, such a hope of the old settlers has been shattered, at least for the time being, consequent to a recent letter from the Union Finance Ministry to the state Chief Secretary. In the letter centre has refused to include the non-Sikkimese in the fold of Sikkim Subject for tax exemption, it is learnt.

Countering the state government’s pleading on the issue, the Union Finance Ministry is believed to have contended that exemption of Sikkim Subjects from direct central taxes was decided after protracted deliberations with the state government and that the issue can not be reopened again.

Sikkim Old settlers seek cut off year for tax exemption

Gangtok,Nov26 : The Sikkim Nationalist Peoples Party (SNPP) on Wednesday urged the Sikkim government to announce a cut off year for migrants in the state to avail the benefit of income tax exemption.

While about 73,000 migrant Nepalese who obtained Indian citizenship in 1990s were eligible for the exemption, a huge chunk of population living in the state for several decades were denied the benefit for lack of required documents, SNPP chief Coordinator, D N Kazi told reporters here.
The state government should immediately convene an all party meeting to evolve a consensus on the cut off year for the entitlement of the exemption, he said.

Kazi urged the state government to ensure that no other central taxes, like wealth tax, be levied upon the Sikkimese people who enjoyed a special status under Article 371(F) of the Constitution.
The Centre has extended income tax exemption to the indigenous Nepalese, Lepcha and Bhutia people on the criteria of identification laid down by state government.

Sikkim IT office issues assessment notices to non-exempted

KNOCKOUT PUNCH TO THE “LEFT OUTS”
GANGTOK, November 6: The Income Tax Office of Sikkim has started issued notices with much fuss to those individuals coming under the purview of the Income Tax Act 1961 to file their return of their incomes in connection with the assessment for the assessment year 2008-09 even as the triad of the ‘left outs’, State Government and Centre play a game of musical chair over the non exemption provided to the non Sikkim Subject holders.
The notice issued by Income Tax Officer LD Lepcha asks the concerned individuals to prepare a true and cored return of their income in respect of which they are assessable under the Income Tax Act during the previous year relevant to the assessment year 2008-09.
“The return should be in the appropriate form as prescribed in Rule 12 of the Income Tax Act Rule 1962”, states the notice issued under section 142 of the Income Tax Act, 1961. The return should be duly verified and signed in accordance with the provisions of the Act as delivered to the Income Tax Office before December 1, 2009.
The latest development apparently deals a fatal blow to the aspirations and movement of those not exempted from paying income tax, particularly the old settlers who do not have the Sikkim Subject certificates, the only ground in the arrangement between the State government and Finance Ministry for becoming eligible for income tax relief.
The Union Finance Minister Pranab Mukherjee had recently stated that only Sikkim Subject certificate holders are exempted from paying income taxes. Rest has to pay. Period.
Mukherjee had stated that the Union government has targeted to collect Rs. 4 lakh crores as revenue from taxes and there will be no compromise on this target.
The mood of the Centre is reflected in the issuing of notices to the ‘non-exempted’ people here to submit their returns delivering probably final blow to around 9,000 old settlers of Sikkim who have been clamouring for exemption at par with Sikkim Subject holders.
(MINGMA BHUTIA)

IT RELIEF ONLY FOR SIKKIM SUBJECT HOLDERS: PRANAB MUKHERJEE

GANGTOK, November 5: Delivering yet another blow to the old settlers of Sikkim, Union Finance Minister Pranab Mukherjee today made it clear that the income tax relief has been granted only to the Sikkim Subject holders and no one else.
The Finance Minister said that the income tax exemption has been given only to the Sikkim Subject holders and not for others, informed Pabitra Bhandari, Executive Editor of Nepali daily Hamro Prajashakti over phone from New Delhi.
Bhandari had questioned the Finance Minister during the inaugural session of the Economic Editors’ Conference today whether the old settlers of Sikkim can be exempted from the income tax as provided to the Sikkim Subject holders here. The meet is being organized Press Bureau of Information at Shastri Bhavan, New Delhi.
Speaking to the media here over phone from New Delhi, Bhandari said in reply, Mukherjee made it clear that the income tax exemption was meant only for the Sikkim Subject holders.
The Finance Minister said that the Union government is targeting to collect Rs. 4 lakh crores as revenue from direct tax in one year and there will be no compromise on this target, informed Bhandari.
Similarly, revenue secretary PV Baidya added that the income tax relief modality had been made in consultation with the Sikkim government where only those names in the Sikkim Subject register and their descendants are eligible for income tax relief in Sikkim, informed Bhandari. Excluding them, Baidya said that others in Sikkim have to pay income tax, she informed.
The latest admission from the very top levels of the Union government deals another blow to the aspirations of the 9000 odd old settlers of Sikkim who have been clamouring for income tax exemption at par with the Sikkim Subject holders.
The Association of Old Settlers of Sikkim (AOSS) had been recently told by the State government to seek legal and constitutional advice so that it can forward the income tax exemption demand to the Centre. The State government had also communicated with AOSS about the conclusion of the committee, which had been formed to look into their demands, there were ‘no provision’ in the Income Tax Act, 1961 for grant of income tax exemption to the left out individuals of Sikkim.