Taxation rules in sikkim

We can say Sikkim as a Tax free state of India.....

As per Sec 10(26AAA) any Income derived by Sikkimese Individual from the a Sate of Sikkim is fully exempt

Further, all type Interest on securities received by Sikkimese Individual is always exempt in his/her hands.......

Sikkimese Individual is a person whose name is being recorded  in the register maintained by State of Sikkim...

Originally posted by : vishal kumar jha
	Hello everyone, I am a CA student and would like to know about the taxation system in Sikkim State of India. Please let me know.

if a CA firm of delhi goes and start rendering service in Sikkim state. will the firm's income be exempt too??

No Vishal....exemp is only to individual that too Sikkimese indiv who is registered as such and his name is appearing in a separate reg maintained by Sikkim Govt...

sir please tell me one more thing,

if we start a partnership firm in sikkim with majority of sikkimese partner's, will income of the partnership firm be exempt???

what about the company?? if i start a company with more than 51% of shareholders of sikkim, will the income of the company be exempt??

See Vishal, it is again clarified that exemp u/s 10(26AAA) only and only to an individual .....and not to any firm/company etc.....Firm having Sikkimese Persons as a Partner doesn't make that firm Sikkimese and as such no benefit to any entity except individual...

I am a resident of Sikkim currently working at a PSU in Hyderabad.

Am i eligible for  Exepmtion of Income Tax in any form?

No, Only Income derived within Sikkim is exempt. Sikkimese working outside Sikkim is not tax exempt.