Income earned in Ladakh, is taxble in India?

Great question! Here’s a clear explanation:

Is Income Earned in Ladakh Taxable in India?

1. Ladakh is part of India as a Union Territory (UT) since October 31, 2019.

2. Income earned in Ladakh by a resident Indian is taxable in India under the Income Tax Act like income earned anywhere else in the country.

3. There is no general exemption under the Income Tax Act for income earned in Ladakh (or any specific region of India) from salary or professional fees.

What about Section 10(26)?

• Section 10(26) of the Income Tax Act provides an exemption for income earned by certain people working in Sikkim or North Eastern states, but Ladakh is NOT included in this list.

• So, Section 10(26) does not apply to Ladakh.

Any other provisions?

• There is no special exemption under the Income Tax Act for income earned in Ladakh.

• Income earned by your friend from the UT Government as remuneration is fully taxable as salary income.

Summary: