IT Office serves ‘final notice’ to Old Settlers to settle Income Tax dues

JOINT COMMITTEE OF STATE GOVT OFFICERS AND OLD SETTLERS TO TAKE UP MATTER WITH CENTREGANGTOK, 06 Sept: The Old Settlers’ Association has not given up on lobbying for Income Tax exemption, neither has the Income Tax Office given up on issuing notices to the “left-out” [from IT exemption] section, most of whom are members of the Association and others of the old business community here in the State seeking their statement of income for payment of Income Tax.
After issuing numerous notices, the Income Tax Office has now issued a final notice declaring that if those served with notices did not respond appropriately, the ITO will itself calculate their incomes and calculate the Income Tax to be appropriated.
On the other hand, members of the Association, subsequent to the issue of the final notice last week, have once again approached the State Government for redressal of their long-pending demand of Income Tax exemption as has been accorded to Sikkim Subjects and their descendents. The state government has in turn decided to set up a joint committee comprising of senior officials and some members of the Association and take up the matter directly with the Centre.
The IT Office, Gangtok, has declared has called all for a final hearing during which the members will be required submit their response. There are around 7,000 members of the Old Settlers’ Association throughout Sikkim and it is informed that a majority of them have not complied with the repeated notices issued by the ITO demanding statement of their income.
As mentioned, in the event that they refuse to comply even with the final notice, the IT Office could compute their income on its own and then calculate the income tax accruing to the government. As per the Income Tax Act there could also be penal consequences for non compliance. It is informed that the IT Office has already begun compiling information to initiate the process.
Last week, members of the association approached the government and a meeting was held. Following this, the State government is informed to have assured the members of the Association that it will now take up the issue directly with the Centre. For this purpose it has also proposed the formation of a committee which is to include senior government officials and also some members of the Old Settlers’ Association. However, that will take some time and the Association members are aware that they have to contend with the final notice of the IT office, Gangtok first.