Exemption from the purview of Central Income Tax, Nagrik Sangharsha Samiti

Press Release


Nagrik Sangharsha Samiti
Above Sri Niketan Mahatma Gandhi Marg, Gangtok, Sikkim
Ph- 03592-204008 Cell No: 09434109760, 09212974355

To,
The Chief Secretary
Government of Sikkim
Tashiling Secretariat
Gangtok 737 101
Sikkim.
Date: 07/12/09
Sub: Exemption from the purview of Central Income Tax

Sir:

With reference to the Notification No. 102/CT/20009 dated 23rd. June, 2009, I, on behalf of the Nagarik Sangharsha Samiti of Sikkim submitted a written representation dated August 29, 2009 and delivered the same personally in your office. A copy of the said letter is attached herewith for your ready reference.

From the contents of the Minutes of the Meeting held in your chamber on 08.10.2009 and signed by the Member Secretary Shri H.B. Rai, it is prima facie clear that the Committee constituted to consider exemption from the purview of Central Income Tax to left out individuals has not taken into consideration the contents of my representation and annexures thereto and ignored the same there by perpetuating injustice to all such persons (barring foreigners) residing in Sikkim before 26 April,1975. The Samiti expected a fair hearing before the Committee which is a normal administrative procedure in any democratic system.

I have carefully perused the contents of paragraph 2 of the Minutes of the Meeting of the aforesaid Committee. It is categorically stated therein that “there was no provision in the

Income Tax Act, 1961 for grant of income tax exemption to the left out individuals in the State of Sikkim”. As far as I am aware, there was no provision in the Income Tax Act,1961 for grant of income tax exemption to the erstwhile Sikkim Subject holders until Sec.10 of the Act was amended by the Finance Act,2008 which inserted 26AAA.

The exemption granted to the erstwhile Sikkim Subject holders and others covered by Government of India Order No.26030/36/90-I ICI dated 7.8.1990 and 8.4.1991, is based on the Cabinet Memorandum No.06/Fin/Adm. dated 21.08.2007 the contents whereof are well within your knowledge as the same was signed by you as Additional Chief Secretary and Secretary-in-Charge, Finance, Revenue and Expenditure Department of the State Government ( A copy of the same is attached herewith for ready reference).

The question of tax exemption was a long-pending political demand of the State of Sikkim and that the same has been agreed to and granted by the Centre under Sec.26AAA discriminating all such persons residing in the State before April 26, 1975.

While pressing for tax exemption, the State Government appears to have totally forgotten the legitimate and genuine demands and expectations of all such persons (barring foreigners) who stood at par and became equal with the erstwhile Sikkim Subject holders as on April 26, 1975.

The Nagarik Sangharsha Samiti of Sikkim urges the State Government to put forward the case of the left out persons residing in Sikkim before April 26, 1975 for income tax exemption in the same manner in which tax exemption was secured for the erstwhile Sikkim Subject holders. This political demand is justified, legitimate and consistent with the role played by all such persons in the all-round development of Sikkim being equal in all respects.

Last but not the least, the tax recovery process initiated by the ITO, Ward: Sikkim State, through individual notices calling for the filing of returns for the assessment years 2008-9 and 2009-10 be forthwith stayed pending the consideration of our demand for tax exemption and equal treatment with the beneficiaries under Sec.26AAA.

We further request that the Circular bearing No.14/Fin/Adm. Dated 12.11.2009 directing all government departments/agencies and authorities to initiate the process of TDS with effect from December, 2009 be similarly stayed and kept in abeyance till our demand is conceded to by the State and the Central Government through suitable amendment of the applicable law.

Thanking you,

Yours faithfully,

( Prem Goyal)
Chief Coordinator

Encl: 1) letter dated 29/08/09
2) Minutes of the meeting dtd 08/10/09
3) Cabinet memo no. 06/Fin/Adm dtd 21/08/2007

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nawin kiran says:

December 9, 2009 at 11:33 am

I have been so called exempted from paying Central Income Tax Act, 1961. If it was so, I would have been sitting at home and praising Mr. Chamling. But I am not doing that because I know implementing Central Direct Taxes in has violated Article 371-F.

Hence, I am rather disappointed with the Old Settlers Association. NSS etc. they should have voiced along with us (ASESE&UA) and said “Direct Taxes should not be implemented at Sikkim at all”.