Tax-Free State in India where people do not have to pay any tax even after earning crores

In India, people have to pay taxes every year especially those whose income comes under the purview of Income Tax. These people are required to pay taxes by the end of July every year. The Income Tax Act 1961 states that if there is a delay in paying income tax or not paying it a notice comes from the Income Tax Department. With the help of taxes, the government can run the country well. Just think, if you do not have to pay any tax on your income, how much relief it will be. There is a state in India where people are not charged tax even after earning lakhs and crores. People living in this state have a lot of fun. Let's know about this state, where people have been given complete exemption on income tax.

There is only one state in North East India where people were given relief from tax. The name is Sikkim. People here earn a lot, and they need not pay even a single rupee tax. It means all the earnings are his own. In such a situation, who would not be willing to live here.

The present population of Sikkim is 6.32 lakh. Most of the people are farmers here. Simultaneously, some people are earning lots of money in tourism and hydroelectricity. Money remains with them as they do not have to pay taxes. This makes this state economically stronger and more developed as compared to other North East states.

You must be wondering why Sikkim has been given relief in income tax. For this, you will have to look into the background of Sikkim. Actually, Sikkim was an independent country before 1975. Later in 1975, it became a part of India and a new state. For this, the India-Sikkim Agreement was signed in 1950. In this agreement, the king of this place Chogyal Tashi Namgyal had laid down some conditions. One of which was giving income tax exemption to the people living here.

His application was approved, and under sub-section (26AAA) to section 10 of the Tax Act, 1961, began receiving income tax exemption. Sikkim gets special status under Article 371F of the Constitution. At that time, however, only those people of Sikkim who had Sikkim Subject Certificates were granted tax exemption. In this way, 95 percent of the people of Sikkim came within the ambit of tax exemption. This rule was changed after 1989, when, upon the orders of the Supreme Court, even those without the certificate got exemptions.