23January2020

Andaman Chronicle

The Daily Diary of the Islands

Sharma Writes to Shinde to Exempt Nicobarese From Payment of Income Tax

Port Blair, July 7: The PCC President, Shri Kuldeep Rai Sharma has requested the Union Home Minister Shri Sushil Kumar Shinde to exempt Nicobarese from payment of Income Tax Under Section 10 of the IT Act 1961.

In his letter Sharma wrote that, the Nicobarese Tribe of this UT, which predominantly inhabits the Nicobar district, is the largest tribal groups with a total population of 28,000 as per 2001 census and the entire Nicboar district has been notified as reserve area under the A&N Islands (Protection of Aboriginal Tribes) Regulation, 1956, except some area in Great Nicobar and Katchal Island.

The tribal population of the UT constitutes 8% of the total population and accordingly there is 8% reservation in group “C” posts in the services of A&N Administration and the total strength of the tribal’s appointed against reserved posts of various categories is about 900.

A substantial number of them are subject to payment of income tax on the income accruing from salary despite being posted in the tribal area while their counterparts and others with different sources of income living in the tribal areas of the States/ UTs viz Nagaland, Manipur, Tripura, Arunachal Pradesh and Mizoram included under sixth schedule of the Constitution are exempted from payment of income tax under section 10(26) of the Income Tax Act, 1961.

Sharma also mentioned that the disparity exists because the tribal area of this UT has not been included under sixth schedule of the constitution.

Sharma has thus requested that the Nicobarese need to be exempted from payment of Income Tax under section 10 of the IT Act 1961 in line with the tribals of North East states/regions and provision for such exception may also be kept for Jarawas, Onges, Great Andamnese, Sentenelese and Shompens.

Sharma stated that in course of time besides Govt servants, considerable number of private tribal entrepreneurs will also be benefited from this exemption.