Gangtok, Aug. 6: Sikkim today formally came under the purview of the central income tax act with the opening of the first income tax office here this afternoon.
Initially, around 10 per cent of the state’s total population of 5.4 lakh will come under the assessment of the tax. However, Sikkim Subject Domicile and holders of Certificate of Identification are exempt from paying the tax.
Bonani Ghosh, the commissioner of the income tax department (north Bengal and Sikkim), said after the inauguration of the new office: “The assessment year will be 2008-2009. This has already been agreed upon between the state and the Centre.”
Assistant commissioner A.K. Pramanik of the Siliguri office will also oversee the Sikkim operations through four employees posted at Gangtok. The new office is housed in a government quarters above Bhanupath on the way to the secretariat.
Pankaj Saxena, the general manager of a hotel here, was the first to file his individual return. His chartered accountant handed over the details of his income to the commissioner.
“I appeal to all members of the business community and the state government to make this a smooth operation,” the commissioner said.
A series of workshops will be conducted by the office soon to answer the queries of those who will now have to pay the Central Income Tax.
The Income Tax Act of 1961 had been extended to the state in 1989 but had not been enforced because of stiff opposition from residents, who felt it would overrule the old laws of Sikkim protected under Article 371 (f) of the Constitution.
( Source: The Telegraph)
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