Article 270 tax of the Indian Constitution, is the most important article ever written in our constitution. It is made for the taxes in India which are distributed between the Union and the States. This article was drafted in 1949. It enables the exclusion of cess from the Union government’s obligation to separate a portion of the divisible tax pool with the States. Now to know everything about this important article, read this entire blog.
Article 270 Tax Of The Indian Constitution
The Article 270 Tax of the Indian Constitution claims that the taxes levied and distributed between the Union and the States. This article claims:
(1) All taxes and duties referred to in the Union List, except the duties and taxes referred to in articles 268 and 269, respectively, surcharge on taxes and duties referred to in article 271, and any cess levied for specific purposes under any law made by Parliament shall be levied and collected by the Government of India and shall be distributed between the Union and the States in the manner provided in clause (2).
(1A) The tax collected by the Union under clause (1) of article 246A shall also be distributed between the Union and the States in the manner provided in clause (2).
(1B) The tax levied and collected by the Union under clause (2) of article 246A and article 269A, which has been used for payment of the tax levied by the Union under clause (1) of article 246A, and the amount apportioned to the Union under clause (1) of article 269A, shall also be distributed between the Union and the States in the manner provided in clause (2)
(2) Such percentage, as may be prescribed, of the net proceeds of any such tax or duty in any financial year shall not form part of the Consolidated Fund of India but shall be assigned to the States within which that tax or duty is leviable in that year, and shall be distributed among those States in such manner and from such time as may be prescribed in the manner provided in clause (3).
(3) In this article, “prescribed” means-
(a) until a Finance Commission has been constituted, prescribed by the President by order, and
(b) after a Finance Commission has been constituted, prescribed by the President by order after considering the recommendations of the Finance Commission.
Also read: What Is Article 21 Right To Life?
What Does Article 270 Tax Of The Indian Constitution Says?
The Article 270 Tax of the Indian Constitution is subjected to the Taxes that are imposed and collected by the Union and divided between the Union and the States. This article enables the exclusion of cess from the Union government’s obligation to separate a portion of the divisible tax pool with the States.
When Was Article 270 Tax Drafted In The Indian Constitution?
The Article 270 Tax was drafted on 5th August 1949 in the Constitution of India. It established the method of collecting and distributing income taxes between the Union and the States. As per the Draft article, the income taxes excluding agricultural income would be collected by the Union government and distributed between the Union and the States by this provision.
Duties In Article 270 Tax
- The government of India shall levy and collect all taxes and duties referred to in the United List.
- It is except the duties and taxes referred to in Article 271 and it is also said that if any cess is imposed for a specific aim under any law made by the parliament.
- The net proceeds of any tax or duty in any financial year in the amount that is described should be assigned to the states in which tax or duty is available in that particular year.
- It should also be distributed along those states in the manner and from the time that is officially prescribed by the clause and it shall not be a part of the Consolidated Fund of India.
