Which Article of the Constitution of India states how a tax may be imposed or levied?
- AOption (a)
365
- BOption (b)
245
- COption (c)
268
- DOption (d)
265
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Correct answer
265
Why this answer is correct
The correct answer is Article 265.
Key Points
- Article 265 of the Indian Constitution mandates that no tax shall be levied or collected except by the authority of law.
- This article ensures that taxation powers are controlled and governed by legislation passed by the Parliament or State Legislatures.
- The provision safeguards citizens from arbitrary imposition of taxes by ensuring legal authorization for all taxes.
- Article 265 is a cornerstone of the financial sovereignty of the government and ensures transparency and accountability.
- The principle embedded in Article 265 aligns with democratic governance, as it requires legislative approval for taxation, reflecting the will of the people.
Additional Information
- Article 246: Defines the legislative powers of Parliament and State Legislatures concerning taxation under the Union, State, and Concurrent Lists.
- Article 248: Provides Parliament exclusive authority to make laws regarding residuary subjects, including residual taxes.
- Article 270: Deals with the distribution of taxes between the Union and the States, ensuring equitable sharing of resources.
- Article 280: Establishes the Finance Commission to recommend the distribution of revenues between the Union and States.
- Concept of Taxation: Taxation is a sovereign function and includes direct taxes (e.g., income tax) and indirect taxes (e.g., GST). It serves as a critical source of revenue for public welfare and infrastructure development.