Home > Income Tax > Help Center > Tax on North eastern States Last Updated: Feb 24th 2023
People live in eight north eastern states of India, who are a member of a scheduled tribe enjoy the income tax exemptions u/s 10(26). Know more on impact, sources of income, eligibility, filing requirements.
Northeast India is the eastern most region of India. It consists of 8 states i.e., Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, and Sikkim. However Northeast India lags behind the rest of the India due to certain issues. The Income Tax Act, 1961 provides certain exemptions and deductions to the people living and operating in North East India.
Income Tax Act 1961 provides for exemption of Income of member of a scheduled tribe u/s 10(26). As per section 10(26), the following income is exempted from Income tax.
Any income arising or accruing
for a member of scheduled tribe residing in
The following income which accrues or arises to a Sikkimese individual will be exempt from Income tax
If the members of scheduled Tribe or Sikkimese individual is having the income from gains from stock market like capital gains, F&O, intraday etc, they are required to pay Income Tax on those transactions. There is no exemption u/s 10(26) or 10(26AAA)
Yes, the above persons are required to file Income Tax if their income exceeds the threshold prescribed by the income tax department. They need to file income tax return, show the income earned and claim the exemption u/s 10(26) and 10(26AAA).
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