Constitution Section 243H — Powers to impose taxes by, and Funds of, the Panchayats

Part IX — THE PANCHAYATS

Constitutional

Summary

A state legislature can pass a law that gives a Panchayat the power to collect certain taxes, duties, tolls, and fees, following a set procedure and within specified limits. The law can also allow the state government to give some of its own collected taxes or other money to the Panchayat for specific purposes and under certain conditions. Additionally, the law can provide for grants-in-aid to the Panchayat from the state’s main fund, and it can set up special funds where all money received by or for the Panchayat is deposited and from which money can be withdrawn.

Official Text

The Legislature of a State may, by law,—

(a) authorise a Panchayat to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits;

(b) assign to a Panchayat such taxes, duties, tolls and fees levied and collected by the State Government for such purposes and subject to such conditions and limits;

(c) provide for making such grants-in-aid to the Panchayats from the Consolidated Fund of the State; and

(d) provide for constitution of such Funds for crediting all moneys received, respectively, by or on behalf of the Panchayats and also for the withdrawal of such moneys therefrom,as may be specified in the law.