📜 Article 274 of the Indian Constitution
Title: Prior recommendation of President required to Bills affecting taxation in which States are interested
🔹 Full Text (Simplified Explanation):
Article 274 mandates that certain Bills related to taxation cannot be introduced in Parliament without the prior recommendation of the President, especially when they affect the interests of States.
✅ Key Provisions of Article 274:
| Clause | Provision |
|---|---|
| (1) | No Bill or amendment that imposes or modifies a tax which is distributable between Union and States, or affects the interests of States, can be introduced in either House of Parliament without the President’s recommendation. |
| (2) | Before giving such recommendation, the President must consult the States through the Finance Commission if necessary. |
🧠Why Article 274 is Important:
-
It protects the financial interests of States by ensuring that tax-related decisions at the Union level don’t negatively impact them without due consultation.
-
It ensures cooperative federalism in matters of financial legislation.
📌 Applicable Cases:
-
Bills related to:
-
Distribution of taxes (Article 270)
-
Grants-in-aid (Article 275)
-
Surcharges (Article 271)
-
Inter-State taxation (Article 269 & 269A)
-
❗ Important Note:
-
This Article applies only to Bills introduced in Parliament (not State Legislatures).
-
It ensures that States' rights are respected before the Centre changes any shared tax or duty system.
📋 Key Points for Exams:
| Question | Answer |
|---|---|
| What does Article 274 require? | President's recommendation before introducing certain taxation Bills in Parliament |
| Whose interests does it protect? | States' financial interests |
| Does it apply to State Assemblies? | ❌ No, only Parliament |
| Is consultation mandatory? | ✅ Yes, President may consult States and Finance Commission |
Here is a comprehensive chart of Articles 270 to 274 of the Indian Constitution, focusing on tax distribution, grants, and procedural safeguards — ideal for exams and revision:
📊 Chart: Articles 270 to 274 – Tax Distribution & Related Provisions
| Article | Title | Key Summary |
|---|---|---|
| 270 | Taxes levied and collected by Union and distributed between Union & States | - Covers Income Tax, CGST, and other Union taxes (except 268, 269, 269A). - Revenue is shared based on Finance Commission recommendations. |
| 271 | Surcharge on certain duties and taxes for Union purposes | - Parliament can impose a surcharge on Article 270 taxes. - Entire revenue goes to Union, not shared with States. - Surcharge cannot be imposed on GST. |
| 272 | (Repealed) Duties levied by Union but distributed to States | - Repealed by 80th Amendment (2000). - Earlier allowed sharing of Union excise duties with States. |
| 273 | Grants in lieu of export duty on jute and jute products | - Compensatory grants to States like West Bengal, Bihar, Odisha, and Assam. - Valid only for 10 years from 1950. |
| 274 | Prior recommendation of President for certain tax-related Bills | - President’s recommendation is mandatory before introducing a Bill in Parliament that affects States' tax interests. - President may consult Finance Commission before approval. |
🧠Quick Recap – Articles 270 to 274
| Purpose | Relevant Article |
|---|---|
| Sharing of Union taxes | Article 270 |
| Surcharge for Union use | Article 271 |
| (Old) Sharing of excise duties | Article 272 (repealed) |
| Grants for jute-exporting states | Article 273 |
| President's approval for tax Bills | Article 274 |
Follow Us