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    Question

    Which Indian state's residents are exempt from paying

    income tax due to specific constitutional provisions?
    A Nagaland Correct Answer Incorrect Answer
    B Sikkim Correct Answer Incorrect Answer
    C Manipur Correct Answer Incorrect Answer
    D Mizoram Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Sikkim uniquely benefits from an exemption from income tax for its residents under ‘Section 10(26AAA) of the Income Tax Act, 1961’. This exemption is part of the special provisions granted to the state following its incorporation into India in 1975, underpinning Sikkim's distinct administrative status.

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