Saturday, November 23, 2024
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CM to take up income tax exemption with Centre

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SHILLONG: The state government will take up with the Centre the issue of payment of income tax by tribals residing in non-scheduled areas.
The response of the government came after Congress legislator P T Sawkmie tabled a Zero Hour notice in the Assembly on Monday on the recent news report that incomes of all indigenous people or non-individuals are not exempt from tax.
He was referring to the statement of chief commissioner of income tax, who had made it clear that only the income earned in the scheduled area by tribal persons is exempted and incomes of all entities other than individuals and incomes of tribal persons outside scheduled areas are subject to income tax.
Sawkmie said the stand of the Income Tax department will bring disparity between the tribals in the state.
According to Sawkmie, if the order of the Income Tax department is implemented, there will be two types of tribals-a section which pays income tax in non-scheduled areas and another that does not pay the tax in tribal areas.
He said the state government should do something about it and a find a solution.
He reiterated that the present system of a tribal paying taxes outside and not paying taxes when he is in the state, is a disparity for the tribal population.
In reply, the Chief Minister, Conrad Sangma, said the issue is outside the purview of the state government as it is dealt by the Centre and the chief commissioner of income tax. “However, we will take up the issue with the central government so that the tribals from the state could be exempted from paying income tax when they are working outside the state or when they are in non-scheduled areas within the state,” the chief minister said.
The chief minister further added that as of now, income tax rules state that tribals are exempted from paying income tax when they are working in areas falling under the Sixth Schedule of the Constitution, but they are taxable when they work outside.

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