Demonetisation: Rs 3.5 crore missing cash in Nagaland airport found –Know why money is routed to North-East

Zee Media Bureau

New Delhi: After a series of twists and turns, Rs 3.5 crore cash in demonetised currency notes, which had 'vanished' from Dimapur airport, was finally seized by the Income Tax Department after frantic searches.

A special vigil has been deployed by security agencies and the airport guarding Central Industrial Security Force in the wake of the demonetisation of the two high denomination currency notes.

A Bihar-based businessman, who was travelling alone in a chartered jet from Hissar, was yesterday apprehended by the CISF here following a tip-off by the Intelligence Bureau that he was carrying "suspect money".

Though the situation of transferring money from Haryana to Nagaland might look strange in the first instance, money being laundered to North-east has a particular reason –exemption of Income tax.

Here is why money is routed to the North-eastern states:

Member of schedule tribe as defined by Article 366(25) of the Constitution of India can avail Income Tax exemption.

STs residing any area in the states of Nagaland, Manipur, Tripura, Arunachal Pradesh, Mizoram or districts of North Cachar Hills, Mikir Hills, Khasi Hills, Jaintia Hills and Garo Hills or in the Ladakh region of the state of Jammu and Kashmir get tax exemption.

Similarly to all those defined as "Sikkimese" also get tax exemption.

Income arising from any source in the above mentioned areas are exempt from income tax.

Dividends or interest on securities arising out of these are also exempted from tax.