SHILLONG: North Shillong MLA Adelbert Nongrum has urged Chief Minister Conrad Sangma to take steps to avoid breach of rights of the indigenous community that may put it in hardship.
He was referring to tax deduction at source (TDS) by the Income Tax department.
Nongrum said bankers and financial institutions operating in the state have been deducting TDS from the interest accrued on fixed deposits from tribal customers.
He pointed out that as per Section 10(26) of Income Tax Act 1961, a member of ST category residing in Tribal Area under Para 20 of the Sixth Schedule of the constitution is exempted from Income Tax.
The MLA argued that since the state of Meghalaya is a notified Schedule Area, the exemption of income tax is required.
He said that while it may be anticipated that such TDS deductions mandated under Section 194(A) on tribal community could pave the way forward in furthering amendments to IT Act in enabling the region to come under full purview of taxation, this would, however, nullify the very mandate of the Sixth Schedule to Article 244(2) and 275(1) of the Constitution.
Stating that Meghalaya has a preponderant agrarian section, Nongrum maintained that it would be an arduous task for the local population to come into tune with the IT Act as they are mostly engaged to make both ends meet.
He said that in cases where fixed deposits are made in the bank, it is meant for their pensionary benefits.
