Citizens of India have to pay tax every year. Especially those whose income comes under the ambit of income tax, they are required to pay tax by the end of July every year. If there is a delay in doing so or not filing it, a notice comes from the Income Tax Department. Let us tell you that with the help of taxes the government can run the country well.

Therefore, it is necessary to pay income tax under the Income Tax Act 1961. But just imagine, how much of a relief it would be if you did not have to pay any tax on your income. There is a state in India where tax is not collected from people even after earning lakhs of crores. That means the people living here are having fun. Let us know about this state, where people have been given complete exemption on income tax. (photo credit: AI)

The only state in India where people do not pay taxes

North East is the only state in India where people have been given tax relief. Its name is Sikkim. The people here earn a lot and do not have to pay even a single rupee of tax. It means that all the earning is the person’s own. Don’t give anything to the government. In such a situation, who would not like to live here?

Why has Sikkim got this exemption?

Obviously the question must be coming in your mind that why Sikkim has been given relief in income tax. For this you will have to look at the history of Sikkim. Actually, Sikkim was an independent country before 1975. In 1975 it became a part of India and a new state. For this, India-Sikkim Agreement was signed in 1950. In this agreement, the King Chogyal Tashi Namgyal had put some conditions. One of the conditions was that the people living here should be given exemption in income tax.

This condition was accepted

his/her condition was accepted and he/she started getting income tax exemption under Section 10 (26AAA) of the Tax Act 1961. Sikkim has got special status under Article 371F of the Constitution. However, at that time, tax exemption was given only to those people of Sikkim who had Sikkim Subject Certificate.

Now 95 percent people do not have to pay tax

However, this rule was changed after 1989. When on the orders of the Supreme Court, even those who did not have certificates were exempted. In this way, 95 percent of the people of Sikkim came under the ambit of tax exemption. (photo credit: AI)

What is the source of income of the people of Sikkim?

Let us tell you that the current population of Sikkim is 6.32 lakh. Most of the people here do farming. Some people here also earn a lot of money through tourism and hydroelectricity. Due to not paying taxes, their money is saved, hence this state is economically stronger and more developed than other North East states.(photo credit:AI)

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If you want to become a millionaire then settle in this state of India, you do not have to pay tax even after earning lakhs and crores.

The only state in India where people do not pay taxes

Why has Sikkim got this exemption?

This condition was accepted

Now 95 percent people do not have to pay tax

What is the source of income of the people of Sikkim?

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