Exemption of property of the Union from State taxation
Article 285 — Exemption of property of the Union from State taxation
The property of the Union shall, save in so far as Parliament may by law otherwise provide, be exempt from all taxes imposed by a State or by any authority within a State. (2) Nothing in clause (1) shall, until Parliament by law otherwise provides, prevent any authority within a State from levying any tax on any property of the Union to which such property was immediately before the commencement of this Constitution liable or treated as liable, so long as that tax continues to be levied in that State.
Plain English Summary
This article states that property belonging to the Union (the central government) is generally not subject to taxes imposed by individual States. However, Parliament has the power to create exceptions to this rule through a law.
Key Points
- Union property is exempt from taxes levied by any State or authority within a State.
- This exemption can be changed if Parliament passes a specific law allowing it.
- Even if an exemption exists, a State can still levy a tax on Union property if the law permits it.
Why It Matters
It establishes a clear financial boundary, ensuring that the central government's assets are not burdened by state-level taxation unless explicitly allowed by the central legislature.
Landmark Judgements
No major landmark judgements.