SIKKIM businessmen not to file Income tax return


RANGPO, January 4: Joining the chorus of protests against imposition of Income Tax Act on old settlers with no Sikkim subject holders, old businessmen of the commercial town of Rangpo have decided not to submit their returns despite an explicit notice from the Income Tax Office, Sikkim.

The ITO had issued notices to around 40 businessmen here on December 11 last year directing them to file their returns of 2008-09 and 2009-10. The last date of submission of the Rangpo businessmen was today.

The Rangpo businessmen today held a meeting here and decided not to submit their returns till the demands of the old settlers of Sikkim for income tax exemption at par with the Sikkim subject holders come to a logical end.

In a five page submission, the Rangpo businessmen has highlighted that the old settlers have received positive assurances from the Chief Minister and other concerned authorities in this regard. They have also requested the ITO not to pressurize on filing returns until a final decision on the income tax exemption demand is given by the concerned authorities.

The businessmen has also highlighted the resolution adopted by the State government in the Sikkim Legislative Assembly on the income tax exemption for the left outs of Sikkim during the winter session on December 12, 2009 and that the matter has now been placed before the Central authorities at New Delhi.

It may be recalled that ITO had on the end of the 2009 started issuing notices to those sections of the Sikkimese society who do not had the Sikkim subject certificates to file their returns of two financial years, 2008-09 and 2009-10.

The posture of the Rangpo old businessmen is analogous with the decision taken by the Old Settlers Association of Sikkim not to file returns until a final decision on their request for income tax relief at par with Sikkim subject holders is taken. The old settlers of Gangtok had already submitted a memorandum to the ITO at Gangtok when a similar notice to file returns had landed on their laps in the early days of December last year.

Similar notices have been issued to businessmen in all parts of the State by the ITO with the final date for submission of returns slated on March 31, 2010.

The issuance of notices by ITO had followed the report of the six member government committee headed by Chief Secretary which had said that there were no provisions in the Constitution to oblige the demands of the old settlers in the Income Tax Act.

The committee had directed the Old Settlers Association of Sikkim to consult legal and constitutional experts on this regard on its own.

Piling more woes to the old settlers, Union Finance Minister Pranab Mukherjee had on November 3 categorically stated that the income tax relief has been granted only to the Sikkim Subject holders and no one else.

However, the tumbling defences of the old settlers found some ground to stand on when the State Assembly had on December 12 last year adopted a private member’s resolution proposed by legislator Ugen T Gyatso Bhutia seeking income tax exemption for the left out categories of persons of Sikkim including the old settlers who do not have the required Sikkim Subject certificates.

Commenting on the resolution, Chief Minister Pawan Chamling had said in the Assembly that the State government has set a base for which the left out persons can be relieved from the Income Tax Act at par with the Sikkim Subject certificate holders.

There are 3,46,993 names in the Sikkim Subject register who have been exempted from the Income Tax Act along with those Sikkimese girls who have married before April 1, 2008 but there are also other people left out who do not have the Sikkim subject certificates, it had been informed.

The State government had also set up a baseline of December 31, 1969 for those old settlers and in government service or having agricultural land in rural areas for income tax exemption.