Articles 243F, 243G and 243H: Panchayat Membership, Powers and Taxes
Articles 243F, 243G and 243H form part of the constitutional framework for Panchayats. They deal respectively with disqualification for Panchayat membership, devolution of powers and responsibilities to Panchayats, and the legal framework through which Panchayats may receive taxation powers and funds.
Article 243F - Disqualifications for membership
Article 243F governs disqualification for being chosen as, and for continuing as, a member of a Panchayat. It links Panchayat disqualifications to applicable State legislative election law and also permits the State Legislature to prescribe additional disqualifications by law.
Clause (1): A person is disqualified for being chosen as, and for being, a member of a Panchayat if the person is disqualified under the law in force for elections to the Legislature of the State concerned, or under a law made by the State Legislature.
Age proviso: A person who has attained twenty-one years of age cannot be disqualified merely because the person is below twenty-five years of age.
Clause (2): A question as to whether a Panchayat member has incurred a disqualification under clause (1) is to be decided by the authority, and in the manner, provided by State law.
The practical effect is that Article 243F supplies the constitutional framework, while the detailed grounds and decision-making procedure depend substantially on the law applicable in the particular State.
Article 243G - Powers, authority and responsibilities of Panchayats
Article 243G enables the Legislature of a State to endow Panchayats with powers and authority necessary for them to function as institutions of self-government. The devolution may be made subject to conditions specified by State law.
The constitutional subjects expressly identified are:
- preparation of plans for economic development and social justice; and
- implementation of schemes for economic development and social justice entrusted to Panchayats, including schemes relating to matters in the Eleventh Schedule.
The Eleventh Schedule contains subjects connected with rural local governance. Article 243G therefore provides the constitutional basis for State legislation assigning functions and responsibilities to Panchayats, but the actual extent of devolution is determined through the relevant State law.
Article 243H - Powers to impose taxes and Panchayat funds
Article 243H concerns the financial framework of Panchayats. It authorises the Legislature of a State to make laws dealing with local taxation, assigned State revenues, grants-in-aid and Panchayat funds.
A State law may:
- authorise a Panchayat to levy, collect and appropriate specified taxes, duties, tolls and fees, subject to prescribed procedure and limits;
- assign to a Panchayat specified taxes, duties, tolls and fees levied and collected by the State Government, subject to stated purposes, conditions and limits;
- provide grants-in-aid to Panchayats from the Consolidated Fund of the State; and
- provide for constitution of funds into which money received by or on behalf of Panchayats is credited and from which withdrawals may be made.
Accordingly, Article 243H does not itself prescribe a particular Panchayat tax. It provides constitutional authority for the State Legislature to establish the applicable fiscal powers, procedures, limits and fund arrangements by law.
How Articles 243F, 243G and 243H work together
These provisions address three connected elements of Panchayat governance: lawful membership, functional authority and financial capacity. Article 243F regulates eligibility and continuing membership; Article 243G provides the framework for devolving governmental functions; and Article 243H provides the framework for fiscal powers and resources. They should be read with the other provisions of Part IX of the Constitution and with the Panchayat legislation of the relevant State.
Official constitutional text
For authoritative reference, see the Constitution of India published by the Legislative Department, Ministry of Law and Justice and the India Code portal.
Page reviewed and updated: 19 September 2026. This article is a general legal information resource; State-specific Panchayat laws should be checked for applicable disqualifications, powers, procedures, taxes and funds.