Sikkim locals warned against misuse of accounts

GANGTOK: The Sikkim government on Thursday cautioned locals, who enjoy income-tax exemption, against allowing non-locals to park money in their bank accounts.
In an advisory, the state finance department warned the Sikkimese, as defined under Section 10 (26AAA) of the Income Tax Act, against misuse of their accounts. The advisory added that it was illegal to allow non-residents to park their money in locals' accounts.
Sikkimese get tax exemption for any income generated from within the state and for income from dividend or interest on securities generated anywhere.The intent behind these exemptions is to provide fiscal concessions to backward areas and communities.
The Centre has also said account-holders who defy norms would be prosecuted under the I-T Act.
Last week, a Gangtok businessman received a notice from the Siliguri-based I-T department for depositing Rs 4.5 lakh in the State Bank of Sikkim without having furnished the required documents.