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Friday, August 8, 2008

CONFUSION OVER INCOME TAX IN SIKKIM

Confusions reigns as income tax payers go through teething problems

Staff Reporter
(Sikkim Express)

GANGTOK, August 07: Barely a day after the new Income Tax Office in the State was inaugurated, taxpayers here seem to be a confused lot.

Most of the people are in a dilemma over the circular issued by the Central Board of Direct Taxes under the Ministry of Finance, Government of India dated July 29, 2008, which has clarified the position and the mechanism of Central Direct Taxes in Sikkim.

The people who comes under the purview of the Central direct taxes said that they are confused with the section 2 (d) of the circular which mentions ‘for the assessment year 2008-09 and subsequent assessment years, assessment or re-assessment, if required, shall be made in accordance with the provision of the income tax Act, 1961 which means for the financial year 2007-08. In simpler terms, the people have to file their income tax return for the financial year 2007-08 as per the notification.

Members of the business community and government employees in Sikkim, who have already paid taxes under State Income Tax Manual, 1948 are worried that they might have to go for double taxation.

“How can we be double taxed because we have already paid our taxes under State Income Tax Manual till June 16, 2008. There is no questions of double taxing,” one of the businessmen told SIKKIM EXPRESS requesting anonymity.

“We were of the notion that the Central Direct taxes would come into be effect from April 1, 2008 retrospectively which means the year of assessment would be 2009- 2010 and the financial year would be 2008-2009.

However, the major lacuna for the businesspersons here is the unavailability of the book of accounts, which they failed to maintain.

“The matter of paying Income Tax came in effect only after the budget session which was held earlier this year and till that time we were totally unaware to maintain our book of accounts,” added another person.

While Speaking with SIKKIM EXPRESS over the phone, Bonani Ghosh, the Commissioner of Income Tax Department, Government of India told that the matter has been taken up seriously and that she would appraise the matter with the Chief Commissioner in Kolkata. “The Chief Commissioner will forward the letter to the Central Board of Direct taxes seeking clear idea about the notification,” she added.

Meanwhile, the Chief Minister Pawan Chamling has been regularly stating that an effort would be made to follow the Ladakh Model, through which even the people without Sikkim Subjects especially the business communities would be exempted in paying the Central Direct taxes.

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