📜 Article 277 of the Indian Constitution
Title: Savings
🔹 Simplified Explanation:
Article 277 ensures continuity of taxation by allowing any existing taxes (before the Constitution came into force) to continue — even if a similar tax is now covered under Union or State jurisdiction by the Constitution.
✅ Key Provisions of Article 277:
| Feature | Description |
|---|---|
| 🏛️ What it protects | Any tax, duty, fee, or surcharge that was being lawfully levied by any local authority or body before the commencement of the Constitution (i.e., before 26 January 1950). |
| ❗ Even if... | Even if that tax is now under Union or State List — the tax can continue until otherwise provided by law. |
| ⚖️ Why needed? | To prevent financial disruption in municipalities, panchayats, and other local bodies when the Constitution came into effect. |
| 🧾 Example | A municipality collecting a water tax or trade license fee before 1950 can continue to do so, unless changed by a new law. |
📌 Purpose of Article 277:
To “save” or allow the continuation of pre-Constitution taxes by local authorities, even if the power to levy such taxes was altered by the distribution of powers in the Constitution.
🧠 Key Points for Exams:
| Question | Answer |
|---|---|
| What does Article 277 save? | Pre-Constitution taxes imposed by local bodies |
| Can they continue after 1950? | ✅ Yes, until modified or repealed by law |
| Is it limited to States or Centre? | ❌ No, applies generally to all existing lawful levies |
| Why is it important? | To avoid financial disruption during constitutional transition |
Here is a comprehensive chart of Articles 265 to 277 of the Indian Constitution, covering taxation, grants, finance distribution, and transitional financial provisions — perfect for study and revision:
📊 Chart: Articles 265 to 277 – Financial Provisions
| Article | Title | Key Summary |
|---|---|---|
| 265 | Taxes to be levied by authority of law | No tax shall be levied or collected except by authority of a law. |
| 266 | Consolidated Fund, Contingency Fund & Public Account | All revenues go into appropriate funds (Union/State); governs public money usage. |
| 267 | Contingency Fund | Allows creation of emergency Contingency Funds for Union and States. |
| 268 | Duties levied by Union but collected by States | Stamp duties and excise on toilet/medicinal goods: Union levies, States collect and keep. |
| 269 | Taxes levied and collected by Union but assigned to States | Inter-State trade taxes (pre-GST) – Union collects, States get revenue. |
| 269A | GST on inter-State trade (IGST) | Union levies and collects IGST, shared between Union & States. |
| 270 | Union taxes distributed between Union and States | Taxes like Income Tax, CGST shared based on Finance Commission. |
| 271 | Surcharge for Union purposes | Union may impose a surcharge on taxes — not shared with States. |
| 272 | (Repealed) | Earlier allowed sharing of Union excise duties — repealed by 80th Amendment. |
| 273 | Grants in lieu of jute export duty | Temporary compensation to jute-exporting States (e.g., Bengal, Assam) for 10 years. |
| 274 | Presidential recommendation on tax Bills affecting States | Bills affecting State tax interests need President’s prior recommendation. |
| 275 | Grants-in-aid to States | Statutory grants to States, especially for Scheduled Tribes/Areas. |
| 276 | Taxes on professions, trades, and employments | States/local bodies may impose professional tax (limit: ₹2,500/year). |
| 277 | Savings (Pre-Constitution taxes) | Existing local taxes (before 1950) can continue unless changed by law. |
🧠 Quick Classification:
| Type | Articles |
|---|---|
| Tax Imposition Rules | 265, 266, 267 |
| Distribution of Taxes | 268, 269, 269A, 270, 271 |
| Grants & Aid | 273, 275 |
| Procedural Safeguards | 274 |
| Other Financial Powers | 276 (Professional Tax), 277 (Savings) |
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