HC Deb 13 July 1944 vol 401 cc1864-5
12. Mr. Leslie

asked the Secretary of State for India whether he is aware that wives of junior British officers residing in Kashmir have to pay a State Income Tax in Kashmir on allotments and allowances taxed at the source in British India; and what steps does he intend taking to rectify this anomalous position.

Mr. Amery

Kashmir is an Indian State with its own independent system of Income-Tax. A reciprocal scheme for relief in respect of double taxation is, however, in force between British India and Kashmir, and I have received no information to suggest that it does not meet the needs of the case.

Mr. Leslie

Would the Minister not consider that this is an imposition? First of all, a junior officer has to pay Income Tax on his allowance where he is stationed and then, when that allowance goes to his wife in Kashmir, she has to pay Income Tax on her allowance there. Surely something can be done to rectify an anomaly of that kind? I have a letter here from the officer's wife stating—

Mr. Speaker

The hon. Member must not read out a letter.

Mr. Leslie

Surely something could be done?

Mr. Amery

No, Sir. If these ladies reside in Kashmir, they do so with knowledge of the fact that Kashmir has a separate Income Tax system from that in British India. There are, however, arrangements to avoid double Income Tax, which I suppose they know about and of which they can make use.

Mr. Leslie

But is the Minister aware that those arrangements only affect the officer if he travels to Kashmir, and that the wife, residing there, has to pay that tax?

Mr. Amery

Yes, Sir, but it is no business of mine to interfere with the Income Tax laws of Kashmir.

Major-General Sir Alfred Knox

Surely some arrangement could be made with the Government of Kashmir or India to give this woman some relief?

Mr. Amery

There is a double tax relief arrangement already; I can only hope she will make use of it.