Income Tax Free State in India: The last date for filing returns for the financial year 2023-24 is 31st July. Those who have not filed ITR by this date will have to pay penalty. The amount of penalty depends on your income.
Income Tax Free State in India
The last date for filing returns for the financial year 2023-24 is 31st July.
Many people will be allowed to file returns even after July 31. But there is one state in India where people don’t have to pay even 1 rupee tax even if they earn 1000 or 1 crore in a year.
Also read this: File Your ITR Quickly and Easily on WhatsApp with ClearTax
There is only one state in the country which is known as tax free state. People living here do not have to pay tax on their income. The name of this state is Sikkim. The people of Sikkim are exempted from income tax under certain laws.
Why tax exemption is given to Sikkim?
Why has the people of Sikkim been given such a huge concession? Before knowing this, we have to understand about the history of Sikkim. Sikkim was an independent country. It merged with India in 1975. But for the merger, the King of Sikkim had set a condition, under which certain special rights were demanded for the state.
Special rights under the Income Tax Act
At that time, as per the terms of Sikkim, the Government of India had exempted the citizens of the state from income tax. Its natives are exempted from income tax under Section 10 (26AAA) of the Income Tax Act, 1961.
Also read this: Budget 2024: Decoding Modi Government’s Key Announcements for Growth & Welfare
Sikkim has been granted special status under Article 371-F of the Constitution. Section 10 (26AAA) of Income Tax provides that the income of any resident of Sikkim shall be exempt from tax.
Also read this:
• Unveiling the Budget-Making Process: From A Leather Bag to Nirmala Sitharaman’s Briefcase
