Article 289 of Constitution of India – Exemption of property and income of a State from Union taxation
Article 289 of Constitution of India deals with Exemption of property and income of a State from Union taxation
Original Text of Article 289 of Constitution of India
(1) The property and income of a State shall be exempt from Union taxation.
(2) Nothing in clause (1) shall prevent the Union from imposing, or authorising the imposition of, any tax to such extent, if any, as Parliament may by law provide in respect of a trade or business of any kind carried on by, or on behalf of, the Government of a State, or any operations connected therewith, or any property used or occupied for the purposes of such trade or business, or any income accruing or arising in connection therewith.
(3) Nothing in clause (2) shall apply to any trade or business, or to any class of trade or business, which Parliament may by law declare to be incidental to the ordinary functions of Government.
Questions related to Article 289 of Constitution of India
Article 289 exempts the property and income of State Governments from Union taxation, ensuring a degree of fiscal autonomy for states under the Constitution of India.
Yes, according to Article 289(2), Parliament may by law allow the Union to impose taxes on state income derived from commercial activities, as clarified under Indian Kanoon.
As part of the Articles of Indian Constitution, Article 289 protects state revenues from central taxation, reinforcing the federal structure enshrined in the Indian Constitution.
Only if the state’s income comes from commercial activities and if Parliament enacts a law to that effect, as stated in Article 289 and explained in Indian Kanoon.
For legal interpretations and case laws, Indian Kanoon is a reliable source, while UPSC aspirants can also refer to summarized explanations in Constitution of India notes and study materials.
For Further Reference:
Other Related Links:
