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4. Amendment of section 10. |
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—In section 10 of the Income-tax Act,—
(a) after clause (26AA) as omitted by the Finance Act, 1997 (26 of 1997) the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 1990, namely:—
‘(26AAA) in case of an individual, being a Sikkimese, any income which accrues or arises to him—
(a) from any source in the State of Sikkim; or
(b) by way of dividend or interest on securities:
Provided that nothing contained in this clause shall apply to a Sikkimese woman who, on or after the 1st day of April, 2008, marries an individual who is not a Sikkimese.
Explanation.—For the purposes of this clause, "Sikkimese" shall mean—
(i) an individual, whose name is recorded in the register maintained under the Sikkim Subjects Regulation, 1961 read with the Sikkim Subject Rules, 1961 (hereinafter referred to as the "Register of Sikkim Subjects"), immediately before the 26th day of April, 1975; or
(ii) an individual, whose name is included in the Register of Sikkim Subjects by virtue of the Government of India Order No. 26030/36/90-I.C.I., dated the 7th August, 1990 and Order of even number dated the 8th April, 1991; or
(iii) any other individual, whose name does not appear in the Register of Sikkim Subjects, but it is established beyond doubt that the name of such individual’s father or husband or paternal grandfather or brother from the same father has been recorded in that register;’;
(b) in clause (29A), after sub-clause (g), the following sub-clause shall be inserted with effect from the 1st day of April, 2009, namely:—
"(h) the Coir Board established under section 4 of the Coir Industry Act, 1953 (45 of 1953);";
(c) after clause (42), the following clause shall be inserted, namely:—
"(43) any amount received by an individual as a loan, either in lump sum or in instalment, in a transaction of reverse mortgage referred to in clause (xvi) of section 47.".
Clause 4 seeks to amend section 10 of the Income-tax Act which relates to incomes which do not form part of the total income.
It is proposed to insert a new clause (26AAA) in section 10 so as to provide that any income, which accrues or arises to a "Sikkimese" individual from any source in the State of Sikkim or by way of dividend or interest on securities, shall not be included in the total income of such individual.
The term "Sikkimese" has been specified in the said clause in pursuance to the Sikkim Subjects Regulation, 1961, rules made thereunder and relevant Government orders issued in this regard.
This amendment will take effect retrospectively from 1st April, 1990 and will accordingly apply in relation to the assessment year 1990-91 and subsequent assessment years.
Clause 4 further seeks to amend clause (29A) of the said section, which provides for exemption of any income of certain commodity boards and export development authorities specified in sub-clauses (a) to (g) of the said clause. It is proposed to insert a new sub-clause to provide exemption in respect of any income accruing or arising also to the Coir Board established under the Coir Industry Act, 1953.
This amendment will take effect from 1st April, 2009 and will accordingly apply in relation to the assessment year 2009-10 and subsequent assessment years.
Clause 4 also seeks to insert a new clause (43) in the said section so as to provide that any amount received by an individual as a loan, either in lump sum or instalment, in a transaction of reverse mortgage referred to in clause (xvi) of section 47 will also not be included in total income.
This amendment will take effect from 1st April, 2008 and will, accordingly apply in relation to the assessment year 2008-09 and subsequent assessment years.
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