The Meghalaya Cabinet has approved a proposal to reimburse non-tribal All India Service (AIS) officers serving in the State 95% of income tax.
The Cabinet headed by Chief Minister Conrad K. Sangma also approved a proposal to reimburse 25% of income tax paid by tribal people of Meghalaya in government service outside the State.
People classified as Scheduled Tribe as defined in Clause 25 of Article 366 of the Constitution residing in a Sixth Schedule area are exempted from paying income tax under Section 10(26) of the Income Tax Act of 1961. A non-tribal is not.
“The State government has decided to reimburse 95% of the income tax paid by non-tribal AIS officers, who are not exempted from payment of income tax,” Meghalaya’s Deputy Chief Minister Prestone Tynsong said.
“AIS officers come to Meghalaya from different parts of the country, and we want to make sure they also get some special incentives. That is why we approved the State Finance Department’s proposal for the reimbursement,” he said.
“I think we are the first State to take such a decision,” Mr. Tynsong said after the Cabinet meeting on Friday evening.
The government has similarly decided to reimburse the State’s tribal employees posted outside Meghalaya, Mr. Tynsong said. “Such employees, who have to pay income tax elsewhere, will be reimbursed annually,” he added.
The reimbursement to AIS officers would entail an expenditure of at least ₹1.45 crore for the State government. The amount for reimbursing the income tax of the State’s employees outside Meghalaya was being worked out, officials said.
Mr. Tynsong clarified that reimbursement of income tax for AIS officers would be stopped if they move out on deputation. They will be entitled to reimbursement soon after rejoining duty in the State.