As the rest of India scrambles to meet tax deadlines, Sikkimese residents enjoy complete exemption.
Before joining India in 1975, Sikkim had its own tax system. Residents never paid Indian income tax!
Section 10(26AAA) of the Indian Income Tax Act protects Sikkimese residents
– Listed in the Sikkim Subjects Register (as of 1975). – Recognized by government orders in 1990 and 1991. – Descendants of registered individuals.
About 1% of Sikkim’s population is excluded, causing ongoing debates about inclusivity.
As debates continue, the Supreme Court’s decisions will shape the future of this unique tax-free status.
As debates continue, the Supreme Court’s decisions will shape the future of this unique tax-free status.