In India, the power to levy and collect taxes is divided between the C

In India, the power to levy and collect taxes is divided between the Central and State Governments. This division is provided under which one of the following Articles of the Constitution of India ?

Article 246

Article 268

Article 270

Article 275

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Answer is Wrong!

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UPSC Combined Section Officer – 2021-22

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The correct answer is A) Article 246.

Article 246 of the Constitution of India distributes the legislative powers between the Union and the States by allocating subjects into three lists: the Union List, the State List, and the Concurrent List, found in the Seventh Schedule. This division includes the power to levy taxes, with specific entries for taxation under each list. Parliament has exclusive power to legislate on matters in the Union List, including taxes mentioned therein. State Legislatures have exclusive power to legislate on matters in the State List, including taxes mentioned therein. The Concurrent List contains subjects on which both can legislate, but there are no entries for taxes in the Concurrent List; taxing power is exclusively divided between the Union and State Lists.

Article 268 deals with duties levied by the Union but collected and appropriated by the States. Article 270 deals with taxes levied and collected by the Union but distributed between the Union and the States. Article 275 deals with grants from the Union to certain States. While these articles relate to the distribution of tax *revenues*, Article 246, read with the Seventh Schedule, defines the fundamental *division of legislative power* to levy and collect taxes based on subject matter.

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