6. Exemption to a “Sikkimese” individual

6.1 Section 10 of Income-tax Act relates to incomes which do not form part of total income. As a measure to promote socio-economic development, a new clause (26AAA) in section 10 has been inserted to provide exemption from income-tax to the following income, which accrues or arises to a Sikkemese individual –

(a) income from any source in the State of Sikkim; or
(b) income by way of dividend or interest on securities

6.2 However this exemption will not be available to a Sikkimese woman who, on or after 1st April, 2008, marries a non-Sikkimese individual. The term ‘Sikkimese’ has been defined under the Explanation to the said clause.

6.3 Applicability: This amendment has been made applicable with retrospective effect from 1st April, 1990 and shall accordingly apply for assessment year 1990-91 and subsequent assessment years.


Extract from Explanatory Notes to The Provisions of the Finance Act, 2008 vide circular no. 1/ 2009, dated 27th Mar, 2009.

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