SHILLONG, July 12: UDP Chief Adviser Bindo M Lanong, on Monday, questioned the Income Tax department over its reported directive instructing banks here to insist upon tribal salaried people to submit their income tax exemption certificate.
“Why do we need to submit the income tax certificate since as per Section 10 (26) of the Income Tax Act, 1961, the tribals are exempted from payment of income tax,” Lanong said.
The UDP chief adviser has cast aspersions on some officers in the department for being unaware of the particular provision for tribals in the Act.
Bindo calculated that the decision to make tribal people submit the exemption certificate would compel them to meet lawyers which in turn will pave way to the exploitation of the situation as a large number of tribals are salaried.
“The income tax exemption certificate will have to be obtained from the court of law,” Lanong said.
He called upon the public to refrain from submitting the tax exemption certificate while asserting that they are exempted from paying tax under the Income Tax Act.
