ITR 2025: Citizens Of This Indian State Are Exempted From Income Tax
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The citizens of India are liable to pay income taxes under the Income Tax Act, of 1961. However, the original inhabitants of one state are
exempted from payment of Income tax under section 10(26AAA) of the Income Tax Act, 1961. (Image: Pexels)
Sikkim was established in 1642 and as per the Indo-Sikkim Peace Agreement in the year 1950, Sikkim became the protected state of India. In 1975, the state was merged with India. At that time, Sikkim's ruler was Chogyal. He granted the Sikkim Income Tax Manual in the year 1948. Thus, when India was merged with India, the terms of income tax exemption for Sikkimese people were imposed on them. Taking this into consideration, section 10 (26AAA) of the Indian Income Tax Act has provided an exemption from income tax to the native residents of Sikkim. (Image: Pexels)
Earlier, the law was only limited to those who possessed a Sikkim subject certificate and their descendant's certificate. Following this, he was considered an Indian citizen under the Sikkim Citizenship Amendment Order, of 1989. But after the Supreme Court granted the status of Sikkimese natives to the people of India who were living in Sikkim till April 26, 1975 (a day before the merger of Sikkim with India), 95 per cent of the population was excluded from tax liability. (Image: Pexels)
Section 10 (26AAA) aims to reduce the burden on taxpayers by granting tax exemptions. Calculating an 'exempted income," or income that is excluded from total income calculations has been focused on in this section. (Image: Pexels)
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