Everyone has to pay income tax. If you earn more than the prescribed limit, then you have to inform the government about it and pay tax. But, there is a state in India where there is no tax on income.

It is difficult to believe this but it is true. Actually, Sikkim is the only state in the country where citizens do not have to pay any tax. However, there is a special reason behind this.

Sikkim has the status of a special state in the country and gives its citizens complete tax exemption. This arrangement has been implemented under Article 371 (F) of the Indian Constitution and Section 10 (26AAA) of the Income Tax Act 1961.

When Sikkim joined the Indian Union in 1975, it was given the status of tax-free special status. The purpose of this special right was to strengthen the economic status of the state and provide financial freedom to the people here.

The special thing is that the tax exemption given to the citizens here is not limited only to income tax, but this discount is also applicable on interest and dividend received from shares and other items.

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The post Income tax exemption: There is no income tax in this state of India, exemption is given for a special reason first appeared on Rightsofemployees.com.

If you have been living on rent, you must have noticed that any rent agreement is only for 11 months. In such a situation, a question arises that why is the rent agreement only for 11 months? Why not for one year or just 10 months?

Rent agreement is called a written agreement between the owner of the property and the tenant in simple language for renting out the property. It contains the details of the buyer and the tenant. It also contains the date of renting the house and the time for which it is being fixed.

As per the requirements of the Indian Registration Act 1908, registration of a property on lease for one year is mandatory. Hence, to avoid the registration process and cost of stamp duty etc., the rent agreement is prepared for 11 months only.

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Section 17 (D) of the Indian Registration Act, 1908. According to this section, if any tenant and landlord make an agreement for a period of less than a year, then they do not need to get it registered. That is why people make an 11-month rent agreement to avoid registration fees.

However, the stamp duty is also less when making an 11-month rent agreement. But some states may have different rules for registering a rent agreement. Making an 11-month rent agreement is definitely a way to save registration fees, but it may reduce legal protection. Therefore, definitely take advice from experts.

The post Why do people make a rent agreement for 11 months? this is special reason first appeared on Rightsofemployees.com.