Activist Sonam Wangchuk on September 25 claimed that he files taxes despite exemption for the residents of Ladakh. Wangchuk said he pays his taxes because he feels it’s his duty.
“I am receiving income-tax summons. They don’t know that no one pays tax in the Ladakh region. Tax is exempted here. But despite that, there is one person who pays his taxes and that is me. Because I feel it is my duty and I have the capacity to pay. I pay despite any legal requirements. How many people are there in the country who pay taxes without any demand from the government. But they are sending me I-T summons. It feels like they are asking me why I am paying taxes,” he told ANI.
The Central government has accused Wangchuk of inciting violence and protests against the government. The government has also claimed that Wangchuk’s organization has violated FCRA norms and CBI-led probe has been initiated. Wangchuk termed the probe as “witch hunt” and said the allegations unfairly target him because of the protests.
But, are the residents of Ladakh exempted from paying any taxes?
Section 10 (26) of the Income Tax Act provides exemption to scheduled tribe members residing in Tripura, Mizoram, Manipur, Nagaland, Assam, Arunachal Pradesh and Ladakh.
This section provides tax relief to certain vulnerable communities living in specific regions of the country, with an aim to reduce any financial burden and enable economic upliftment.
What exactly is exempted?
The section provides exemption to various types of income if individuals meet the eligibility criteria stated in the Act. Individuals can seek exemption for income earned from salaries, business profits and professional fees. However, the income must be generated within the specified geographical regions.
Eligibility criteria
The exemption is only eligible for members of scheduled tribes living in the specified states and regions. The income if earned outside the listed regions won’t be eligible for exemptions. Moreover, capital gains and income from investments that originate from outside the specified regions won’t qualify for the exemptions.
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