Constitutional provisions relating to Taxation

Your society charges maintenance, the Municipal Corporation charges property tax, the Centre deducts tax from your salary and GST is added to your restaurant bill. Four different authorities, each taking money by law. Who gave each of them the right to do so, and what stops one from trespassing on another's territory? The Constitution answers both questions, and taxation questions in this paper often begin and end with it.

In two minutes

The Constitution both creates and limits the power to tax: Art.265 says no tax without the authority of law, Art.246 and the Seventh Schedule decide whether Parliament or a State may make that law, and Part XII decides who collects the proceeds and how they are shared.

The rest of this chapter

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