Article 270 - Constitution of India
All taxes and duties included in the Union List are now covered by Article 270, except stamp duties, tax on the sale or purchase of goods and services, surcharges on some taxes, and cess collected for particular reasons.
- On August 5, 1949, a discussion of Draft Article 251 (Article 270, Constitution of India 1950) took place.
- It outlined how income taxes would be collected and allocated between the Union and States.
- According to this draft article's provisions, the Union government would be in charge of collecting and distributing the taxes on income other than agricultural revenue between the Union and the States.
- The President would establish the percentage and method of distribution of such revenues after considering the Finance Commission's suggestions.
What is Article 270?
Article 270 of the Constitution deals with levied taxes collected by the Union and distributed between the Union and the States. It makes it possible to exempt cess from the Union government's requirement to share a portion of the dividing tax pool with the States.