Constitution Section 276 — Taxes on professions, trades, callings and employments

Part XII — FINANCE, PROPERTY, CONTRACTS AND SUITS — General

Constitutional

Summary

A state government can make laws to tax professions, trades, jobs, or other types of employment, and this tax is valid even if it looks like a tax on income. The total tax charged to any one person for these purposes cannot exceed two thousand five hundred rupees per year. This state power does not reduce Parliament’s ability to tax the income that comes from those same professions, trades, or jobs.

Official Text

(1) Notwithstanding anything in article 246, no law of the Legislature of a State relating to taxes for the benefit of the State or of a municipality, district board, local board or other local authority therein in respect of professions, trades, callings or employments shall be invalid on the ground that it relates to a tax on income.

(2) The total amount payable in respect of any one person to the State or to any one municipality, district board, local board or other local authority in the State by way of taxes on professions, trades, callings and employments shall not exceed two thousand and five hundred rupees per annum. * * * *

(3) The power of the Legislature of a State to make laws as aforesaid with respect to taxes on professions, trades, callings and employments shall not be construed as limiting in any way the power of Parliament to make laws with respect to taxes on income accruing from or arising out of professions, trades, callings and employments.