MINISTER OF STATE IN THE MINISTRY OF FINANCE: (SHRI S.S. PALANIMANICKAM)
(a) Clause (26) of Section 10 of the Income-tax Act provides
exemption to income accruing or arising to a member of a Scheduled Tribe
as defined in clause (25) of article 366 of the Constitution, residing in
the following areas from any source in the said area or states or by way
of dividend or interest on securities:-
(i) any areas specified in Part I or Part II of the Table appended
to paragraph 20 of the Sixth Schedule to the Constitution, or
(ii) in the States of Arunachal Pradesh, Manipur, Mizoram, Nagaland
and Tripura, or
(iii) in the areas covered by notification No.TAD/R/35/50/109, dated
the 23rd February, 1951, issued by the Governor of Assam under the
proviso to sub-paragraph (3) of Paragraph 20 of the sixth schedule of the
Constitution as it stood immediately before the commencement of the
North-Eastern Areas (Reorganisation) Act, 1971 (81 of 1971), or
(iv) in the Ladakh region of the State of Jammu and Kashmir.
The exemption is not available to all residents of the said geographical
areas but only to a certain section of individual assessees i.e., the
members of the Scheduled Tribes residing in that area. This exemption is
provided both in the interests of the Scheduled Tribes nd also in the
interest of the areas which the tribes inhabit.
(b) As stated in a) above, the exemption is not intended to be granted
solely on grounds of geographical conditions but it is meant for certain
sections of people i.e., the Scheduled Tribes residing in specified areas.
(c) No proposal to extend the exemption under section 10(26) to the
tribal areas of Himachal Pradesh is under consideration.
(d) Not applicable.
