Why scrapped notes are moving to northeast
Money flown from Haryana to Nagaland which might seems such as truly bizarre way to convert old notes into legal tender. India’s income tax laws allow exemptions for numerous categories of individuals or incomes. Exemptions are now misused to convert black cash into white money.
Paying income tax are members of tribe communities in Nagaland, Manipur, Tripura, Arunachal Pradesh and Mizoram. Scheduled tribes such as North Cachar Hills and Mikir Hills in Assam, the Khasi Hills, Garo Hills and Jaintia Hills in Meghalaya and Ladakh in Jammu and Kashmir dont have to pay income tax. Exemption applies to income for arising from any sources in each areas from dividends or interest on securities from anywhere.
Similar exemption is said to be available to be defined as “Sikkimese” in the I-T Act. This income generated from Sikkim and for income from interest or dividend on securities generated anywhere.