WEALTH TAX IN SIKKIM

Sikkimese individuals not exempted from Wealth Tax: BJP

SE Report
GANGTOK, August 13: The Sikkim State Bharatiya Janata Party (BJP) has said that the Sikkimese individuals are not exempted from Wealth Tax.

Vandana Ramachandran of the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, Government of India has said this in a reply when the BJP sought information whether Sikkimese individuals are exempted from Wealth Tax, Gift Tax, Property Tax.

“Wealth Tax is chargeable @ 1% of net wealth exceeding Rs. 15, 00, 000. There is no gift tax liability as gift tax has been abolished. Property tax is not a direct tax since it is a tax levied by local municipal authorities on property,” it was informed.

In a party communiqué, general secretary, CB Chettri has said that any Sikkimese having assets as movable and immovable combined together above Rs 15 lakhs may have to pay wealth tax.

“This is nothing but imposition of tax which Sikkimese had never paid earlier. Let the SDF party and the SDF Government explain the fall out of this to the people of Sikkim,” he said.

Reiterated that the extension of Indian Income tax with exemption to Sikkimese individual is the dilution of the provision of the Article 371 F (k) of the Constitution of India and that there is nothing to celebrate by the SDF party and the SDF Government, the general secretary, Sikkim State maintained that the income tax exemption to Sikkimese individual could have been probably given even by amendment of the Sikkim Income Tax Manual.

“It was rumored there was some secrete understanding reached before extending the Indian Income Tax with exemption to Sikkimese individual. One of the understandings might be the extension of the Wealth tax,” the release added.