Taxes on professions, trades, callings and employments
Article 276 — Taxes on professions, trades, callings and employments
Notwithstanding anything in article 246, no law of the Legislature of a State relating to taxes for the benefit of the State or of a municipality, district board, local board or other local authority therein in respect of professions, trades, callings or employments shall be invalid on the ground that it relates to a tax on income.
(2) The total amount payable in respect of any one person to the State or to any one municipality, district board, local board or other local authority in the State by way of taxes on professions, trades, callings and employments shall not exceed two thousand and five hundred rupees per annum. * * * * (3) The power of the Legislature of a State to make laws as aforesaid with respect to taxes on professions, trades, callings and employments shall not be construed as limiting in any way the power of Parliament to make laws with respect to taxes on income accruing from or arising out of professions, trades, callings and employments.
Plain English Summary
This article ensures that state governments can impose taxes on professions, trades, callings, and employment, even if those taxes are not directly on income. It also sets a limit on the total tax an individual can pay annually for these activities. Furthermore, it clarifies that state laws about these taxes do not restrict the central Parliament's power to tax income from these professions.
Key Points
- State legislatures have the power to make laws regarding taxes on professions, trades, callings, and employments.
- A person cannot be required to pay more than ₹2,500 per year in total tax for these activities to the State or local authorities.
- State laws on these taxes do not limit Parliament's power to tax income from these professions.
- The law regarding these taxes is valid even if it relates to a tax on income.
Why It Matters
This article balances the powers of the central government (Parliament) and state governments by allowing states flexibility in taxing professional activities while setting a ceiling on individual liability.
Landmark Judgements
No major landmark judgements.