Sikkim: Finance Bill 2023 with amendments in income tax exemptions to Sikkimese under Section 26AAA passed in Lok Sabha

The Lok Sabha on March 26 approved the Finance Bill 2023 with amendments, including the extension of Section 26 AAA's income tax exemptions to Sikkimese.

The said bill was passed without having any discussion over the same in the lower house of parliament with 64 official amendments. 

On February 1, 2023, Union Finance Minister Nirmala Sitharaman had introduced the Bill in Parliament. 

The Finance Act's Section 10 Clause 26AAA, which would grant the Sikkimese people income tax exemptions, is one of the proposed amendments in the Bill and the  People who fit any of the following descriptions are referred to as "Sikkimese":

(i) Their name is recorded in the Register of Sikkim Subjects maintained under the Sikkim Subjects Regulation, 1961, read with the Sikkim Subject Rules, 1961, before April 26, 1975;

(ii) Their name is included in the Register of Sikkim Subjects by virtue of the Government of India Order No. 26030/36/90-I.C.I., dated August 7, 1990, and Order of even number dated April 8, 1991;

(iii) Their name does not appear in the Register of Sikkim Subjects, but it is established beyond doubt that their father, husband, paternal grandfather, or brother from the same father has been recorded in that register;

(iv) Their name does not appear in the Register of Sikkim Subjects, but it is established that they were domiciled in Sikkim on or before April 26, 1975; or 

(v) They were not domiciled in Sikkim on or before April 26, 1975, but it is established beyond doubt that their father, husband, paternal grandfather, or brother from the same father was domiciled in Sikkim on or before April 26, 1975.

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