CBDT Includes Sikkim u/s 80-IE Income Tax Deduction Benefits for North-Eastern States [Read Notification]

The Central Board of Direct Taxes (CBDT) under the Ministry of Finance issued Notification No. G.S.R. 352(E) dated 29 May 2025, officially expanding the scope of Section 80-IE of the Income Tax Act by granting income tax deduction eligibility to undertakings located in Sikkim. This correction to the earlier notification G.S.R. 279(E) dated 30 April 2025 updates Schedule 80-IE, which details eligible undertakings from the North Eastern region entitled to 100% tax deductions under the said section.

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The notification now formally includes Sikkim as the eighth state eligible for tax deduction benefits under Section 80-IE, bringing uniformity and expanded incentives across all North Eastern states.

The undertakings listed must comply with the conditions laid out in Clause 30 of Form 10CCB, certified by a chartered accountant.

Substituted Schedule 80-IE

Code	State	Undertaking	Reference
aa	Assam	aa1 – Undertaking no. 1	(30 of Form 10CCB of the undertaking)
		aa2 – Undertaking no. 2	(30 of Form 10CCB of the undertaking)
ab	Arunachal Pradesh	ab1 – Undertaking no. 1	(30 of Form 10CCB of the undertaking)
		ab2 – Undertaking no. 2	(30 of Form 10CCB of the undertaking)
ac	Manipur	ac1 – Undertaking no. 1	(30 of Form 10CCB of the undertaking)
		ac2 – Undertaking no. 2	(30 of Form 10CCB of the undertaking)
ad	Mizoram	ad1 – Undertaking no. 1	(30 of Form 10CCB of the undertaking)
		ad2 – Undertaking no. 2	(30 of Form 10CCB of the undertaking)
ae	Meghalaya	ae1 – Undertaking no. 1	(30 of Form 10CCB of the undertaking)
		ae2 – Undertaking no. 2	(30 of Form 10CCB of the undertaking)
af	Nagaland	af1 – Undertaking no. 1	(30 of Form 10CCB of the undertaking)
		af2 – Undertaking no. 2	(30 of Form 10CCB of the undertaking)
ag	Tripura	ag1 – Undertaking no. 1	(30 of Form 10CCB of the undertaking)
		ag2 – Undertaking no. 2	(30 of Form 10CCB of the undertaking)
ah	Sikkim	ah1 – Undertaking no. 1	(30 of Form 10CCB of the undertaking)
		ah2 – Undertaking no. 2	(30 of Form 10CCB of the undertaking)
ai	Total deduction for undertakings located in North-east (total of aa1 to ah2)		ai
b	Total Deduction under Section 80-IE: ai		b

What This Means for Businesses in Sikkim

• Enterprises in Sikkim can now claim 100% tax deduction under Section 80-IE if they qualify.
• The inclusion puts Sikkim on equal footing with the other seven North Eastern states already receiving this benefit.
• Businesses should ensure proper documentation, especially Form 10CCB Clause 30, to avail of the deduction.

This decision is seen as a part of the government’s broader push for regional economic development and investment facilitation in the North East

To Read the full text of the Notification CLICK HERE

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