Article 270 of Constitution of India "Taxes levied and collected by the Union and distributed between the Union and the States"
(1) Taxes on income other than agricultural income shall be levied and collected by the Government of India and distributed between the Union and the States in the manner provided in clause (2).
(2) Such percentage, as may be prescribed3, of the net proceeds in any financial year of any such tax, except in so far as those proceeds represent proceeds attributable to Union territories or to taxes payable in respect of Union emoluments, shall not form part of the Consolidated Fund of India, but shall be assigned to the States within which that tax is leviable in that year, and shall be distributed among those States in such manner and from such time as may be prescribed.
(3) For the purposes of clause (2), in each financial year
such percentage as may be prescribed of so much of the net
proceeds of taxes on income as does not represent the net
proceeds of taxes payable in respect of Union emoluments
shall be deemed to represent proceeds attributable to Union
(4) In this article;
(a) "taxes on income" does not include a corporation tax;
(b) "prescribed" means;
(i) until a Finance Commission has been constituted, prescribed by the President by order, and
(ii) after a Finance Commission has been constituted, prescribed by the President by order after considering the recommendations of the Finance Commission;
(c) "Union emoluments" includes all emoluments and pensions payable out of the Consolidated Fund of India in respect of which income-tax is chargeable.
What is Interpretation? What is the meaning Taxes not to be imposed save by authority of law? What is Consolidated Funds and public accounts of India and of the States? Article 264, 265 and 266 of Constitution of India, 1949
What are the Surcharge on certain duties and taxes for purposes of the Union? What are the Taxes which are levied and collected by the Union and may be distributed between the Union and the States? Article 271 and 272 of Constitution of India, 1949
What are the Grants in lieu of export duty on jute and jute products? What is the meaning Prior recommendation of President required to Bills affecting taxation in which States are interested? Article 273 and 274 of Constitution of India, 1949