BT EXPLAINER | Why Sikkim is exempt from income tax, which residents can claim exemption

Sikkim as India’s ‘tax heaven’ Sikkim is also described as India’s ‘tax heaven.’ It was not always a part of India and was earlier an independent monarchy known as the Kingdom of Sikkim. After a referendum in 1975, Sikkim became India’s 22nd state. When it joined India, Article 371F was added to the Constitution to protect the rights of local people and the laws that were already in force there. Through this special provision, Sikkim was given certain legal and administrative protections so that the interests of its original residents and its traditional system could be safeguarded. WATCH THIS: Exclusive…