Sikkim tax exemption appeal... Golay seeks Kovind help on tax exemption

RAJEEV RAVIDAS, TT, 15 Jun 2019, Gangtok:Sikkim chief minister P.S. Golay has urged President Ram Nath Kovind to extend income tax exemption to the old settlers of the state to ensure parity between them and the vast majority of the Sikkimese people who have been granted the sop.

An official release issued here said Golay had called on Kovind at Rashtrapati Bhavan on Thursday night and made the request. “Hon'ble President listened to the demands patiently and assured to look into the issue carefully,” said the release. .

The old settlers are people of Indian origin who came to Sikkim prior to 1975 when the Himalayan kingdom merged with the country, but do not possess the Sikkim Subject Certificates (SSCs) issued by the erstwhile ruler of Sikkim to the others. There are about 400 families of old settlers spread across Sikkim today. .

The Centre had granted income tax exemption to SSC holders and their descendants in 2008 after an amendment to the Finance Act based on the state's request. That same year, the Association of Old Settlers of Sikkim (AOSS) had filed a petition with a Rajya Sabha Committee saying it was discriminatory and violated Article 14 (equality before law) and 15 (prohibition against discrimination) of the Constitution. .

Subsequently in 2013, the AOSS had filed a petition in the Supreme Court stating that its members were entitled to income-tax exemption under Section 10(26-AAA) of the Income Tax Act. “The final hearing of our case will be held on August 27,” said Amar Agarwal, the general secretary of the association. .

Agarwal hailed Golay for taking up their issue with the President. “The fact that Mr Golay raised the issue with the President is a very positive initiative… In the manner Mr Golay has taken up our issue in Delhi makes us very positive about this government,” he added. .

Agarwal also accused the previous governments of the Sikkim Democratic Front of not intervening on behalf the old settlers with any degree of seriousness. .

“We had submitted many representations to the Central government and the state government. .

The state government had set up a committee (in this regard), but that committee did no work at all. It did not hold a single meeting. .

What we understand from this is the last government did not show any sincerity in doing our work,” he alleged. .