India has a Tax Haven, where you pay zero tax even when you earn in crores...

The Income Tax Act has a Section 10(26AAA) as per which native residents of one state are exempt from paying tax.

From income under business carried out in the state, or receipt of any interest, dividends... regardless of the amount or value.

Such special status comes from the Constitution of India.

It’s a state that merged with India in 1975, and everyone who was a resident of that state before the merger shall continue to enjoy the special privileges of zero tax.

And the state is Sikkim.

This special privilege has been misused in a lot of ways over the years.

During demonetization, a number of people with cash deposited it with folks from Sikkim, asking them to deposit it in their bank accounts in return for a fee, and later send it to them through a bank transfer.

Over the years, people have opened a number of trading accounts on the multi commodity exchanges to do commodity trading, which makes those incomes exempt.

Sikkim traders did over 5% of the trades on the MCX commodity exchange which ran into above USD 6 Bn, in a state that has a population of barely 650k people.

Cool stuff.
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A Chartered Accountant with about 10 years of experience in areas of Tax Advisory, Startup Consulting, Fundraising, Audits, Deal Advisory, Business Modelling and contract CFO services.

Winner of the ISB Young Leader Award 2017 and the Best All Rounder, PGP Class of '17, Sarthak has also been published about in the leading financial newspapers such as The Financial Express as possibly the youngest Indian to have completed the courses of CA, CS and CMA along with a graduate degree in Financial & Investment Analysis from University of Delhi, all by the age of 23 years.

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