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Income Tax: No matter how much money you earn, you will not have to pay income tax, know who gets this exemption..
Shikha Saxena | June 7, 2025 7:15 PM CST

Income Tax: Almost every citizen of the country pays income tax and paying income tax is considered their duty, but do you know that there is a state in India where the citizens of the state are given some special rights?

The people of this state have been given exemption by the government (Income Tax Updates). Let us know in the news which things the people of this state have got exemptions.

Up to how much income is income tax-free

However, now the government has given a lot of relief regarding income tax. In this year's budget, the government has made income up to Rs 12 lakh tax-free for paying income tax.

However, if your income is more than the prescribed limit, then you will have to pay tax. But there is a state in the country where even if the daily income is 12 lakhs or even 12 crores, even then not a single penny of tax has to be paid for it.

Citizens of which states do not have to pay tax

Let us know which citizens do not have to pay even a single rupee of income tax. We are talking about the state of Sikkim. Which was merged with India in 1975 on one condition. According to the condition, the old law and special status of Sikkim will continue.

Apart from this, let us tell you that this northeastern state has also complied with its own Sikkim Income Tax Manual 1948. This state has been controlling tax laws since 1975. According to the rules, no resident of the state of Sikkim has to pay tax to the Government of India.

According to this law, tax exemption is available.

According to the information, Sikkim had canceled the tax law in the year 2008. By adding Section 10 (26AAA) to the Union Budget of 2008, tax exemption has been given to the citizens of the state. A section of this act protects the special status given to the residents of the state of Sikkim.

Sikkimese was included according to Article 371 (F). It may be noted that in 2008, more than 94 percent of the citizens of Sikkim were given tax exemption by the Central Government. Along with this, under Section 10 (26AAA), the citizens of Sikkim are also exempted from the income received in the form of dividends or returns on shares.

The Supreme Court of the country says that according to Section 10 (26AAA), all the citizens of Sikkim will get the benefit of the tax exemption currently available.

This also includes those people who had come here and started living permanently even before the merger of Sikkim in India. Sikkim is the only state in the whole country where residents do not have to pay a single rupee tax.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.


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