Tax-Free State of Sikkim: Historical and Legal Factors

Mitali | Last updated: 01 August 2024

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Sikkim enjoys a unique tax-free status in India, a privilege established when it merged with the nation in 1975. This status is legally enshrined in Article 371F of the Indian Constitution. Further clarification and specific exemptions for Sikkimese individuals were introduced through Section 10(26AAA) of the Income Tax Act in 2008, covering various income sources for eligible residents.

Sikkim state became tax-free during its merger with India in 1975, when it became the 22nd state of India. The tax-free status is supported by Article 371F of the Indian Constitution which was introduced through the 36th Amendment Act, 1975. The state had its own income tax manual from 1948. But i

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About the Author

Mitali

Finance Professional

I write about Income Tax, GST, TDS, RBI updates, government schemes, and personal finance in India. My focus is on simplifying complex tax and compliance topics into easy-to-understand guides that help readers stay updated with the latest financial rules, investment options, and regulatory changes.

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