📜 Article 276 of the Indian Constitution
Title: Taxes on Professions, Trades, Callings and Employments
🔹 Simplified Explanation:
Article 276 allows the State Governments and local bodies (like municipalities or panchayats) to levy taxes on professions, trades, callings, and employments — also known as Professional Tax.
✅ Key Provisions of Article 276:
| Feature | Description |
|---|---|
| 💼 What is taxed? | Anyone practicing a profession, trade, calling, or employment (e.g., doctor, lawyer, engineer, employee, shopkeeper). |
| 🏛️ Who can levy this tax? | - State Governments - Local authorities (municipalities, panchayats, etc.) |
| 💰 Tax Limit | Parliament set the maximum limit at ₹2,500 per person per year. (This limit has not been revised yet.) |
| ⚖️ Does not affect income tax | This tax is separate from income tax levied by the Union under Article 246 + Entry 82 (Union List). |
| ❌ No double taxation conflict | Both Union and States can tax independently – one on income, the other on profession. |
📌 Important Points for Exams:
| Question | Answer |
|---|---|
| Is professional tax the same as income tax? | ❌ No |
| Who can levy professional tax? | ✅ States and local bodies |
| What is the constitutional tax limit? | ₹2,500/year/person |
| Can both Union and State tax a person? | ✅ Yes, but on different bases |
🧠 Example:
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A doctor earns ₹10 lakh per year.
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She pays Income Tax to the Union Government.
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She also pays Professional Tax (max ₹2,500/year) to her State Government.
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Here is a comprehensive chart of Articles 265 to 276 of the Indian Constitution, focused on taxation and grants — perfect for revision, exams, or blog summaries:
📊 Chart: Articles 265 to 276 – Taxation & Financial Provisions
| Article | Title | Key Summary |
|---|---|---|
| 265 | Taxes to be levied by authority of law | No tax can be imposed or collected except by a valid law. |
| 266 | Consolidated Fund, Public Account, and Contingency Fund | Defines how public money is kept and spent for both Union and States. |
| 267 | Contingency Fund | Allows creation of a Contingency Fund for urgent, unforeseen expenditure. |
| 268 | Union duties collected and appropriated by States | Stamp duties and excise on certain goods – levied by Union, collected by States. |
| 269 | Union taxes assigned to States | Taxes on inter-State trade – levied and collected by Union, but assigned to States. |
| 269A | GST on inter-State trade (IGST) | IGST is levied and collected by Union, then shared with States. |
| 270 | Union taxes distributed between Union and States | Income tax, CGST etc. – shared between Union & States as per Finance Commission. |
| 271 | Surcharge for Union purposes | Parliament may impose a surcharge, but the revenue goes only to Union. |
| 272 | (Repealed) | Earlier allowed sharing of Union excise duties with States. |
| 273 | Grants in lieu of jute export duty | Temporary grants to jute-producing States (valid only for 10 years from 1950). |
| 274 | President’s recommendation for tax Bills affecting States | Certain Bills need prior approval of the President if they affect States. |
| 275 | Statutory grants to States | Grants-in-aid from Union to States, especially for Scheduled Tribes/Areas. |
| 276 | Professional Tax | States/local bodies can impose tax on professions/trades, up to ₹2,500/year/person. |
🧠 Quick Tax Power Summary Table:
| Tax Type | Levied By | Collected By | Revenue To | Limit/Note |
|---|---|---|---|---|
| Income Tax | Union | Union | Shared (Art. 270) | Shared via Finance Commission |
| IGST (GST on inter-State) | Union | Union | Union + States | Art. 269A |
| Stamp Duty (certain cases) | Union | States | States | Art. 268 |
| Professional Tax | State/Local | State/Local | State/Local | ₹2,500/year limit (Art. 276) |
| Surcharge | Union | Union | Union only | Not shared (Art. 271) |
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