Tribals need to obtain exemption certificate from Income-Tax Department: Deputy CM Chowna Mein

"If any tribal person earns money within his State, he is exempted from income tax. But if the person earns money in non-scheduled area or other States of the country, he is liable to pay income tax," Chowna Mein said.

Arunachal Pradesh Deputy Chief Minister Chowna Mein on March 9 said the indigenous tribal population of the State residing within the areas of 6th Schedule given under the provision of Clause 26 of Article 366 of the Constitution, is exempted from Income Tax Act, 1961.

Responding to a question brought in the Assembly by Congress member Nabam Tuki on notices served to some tribal people of the State by the Income Tax Department, Mr. Mein said the tribal population needs to obtain Tax Exemption Certificate (TEC) from the I-T Department under Section 197 of the Income Tax Act, 1961.

"If any tribal person earns money within his State, he is exempted from income tax. But if the person earns money in non-scheduled area or other States of the country, he is liable to pay income tax," Mr. Mein, who also holds the Finance, Planning and investment portfolios, said.

When Mr. Tuki pointed out that the Income-Tax Department had issued notices to many people of the State on amount deposited in their bank several years ago, the Deputy Chief Minister informed that the State government so far had not received any such report of harassment.

He, however, asserted that the government would take up with the Income-Tax Department as and when such instances of imposition of income tax to genuine people who, are not earning through business from any other States, is brought to the notice of the government.

Responding to a supplementary from Mr. Tuki, Chief Minister Pema Khandu said that if abnormal transactions in bank accounts of tribal people are made, notices from Income-Tax Department would come automatically and in such cases, source of income had to be shown.

"After explaining the source of income with proper documents, there will be no problem for the indigenous tribal people," Mr. Khandu added. The Chief Minister also requested the members to develop the habit of filing tax returns even if they are exempted from income tax in the State.