Article 274 of Indian Constitution: Prior President recommendation needed for Bills

Article 274 of Indian Constitution requires the President's prior recommendation before introducing or moving any taxation-related bill or amendment impacting states in Parliament. This includes taxes with proceeds assigned to states or payable from India's Consolidated Fund. For example, a bill proposing a new shared tax must seek presidential approval first. This ensures state interests are safeguarded in taxation matters significantly affecting their revenue and financial standing. Explore other Articles in depth in Constitutional Articles.

Article 274 of Indian Constitution

Prior recommendation of President required to Bills affecting taxation in which States are interested

1. No Bill or amendment which imposes or varies any tax or duty in which States are interested, or which varies the meaning of the expression "agricultural income" as defined for the purposes of the enactments relating to Indian Income-tax, or which affects the principles on which under any of the foregoing provisions of this Chapter moneys are or may be distributable to State, or which imposes any surcharge for the purposes of the Union as is mentioned in the foregoing provisions of this Chapter, shall be introduced or moved in either House of Parliament except on the recommendation of the President.
2. In this article, the expression "tax or duty-in which States are interested" means-

• a tax or duty the whole or part of the net proceeds whereof are assigned to any State; or
• a tax or duly by reference to the net proceeds whereof sums are for the time being payable out of the Consolidated Fund of India to any State.

Note: "The information is referred from the official website of the Indian Code and is for reference only. Original laws and orders remain untouched.

Free Download Key takeaways on Article 274 of Indian Constitution PDF

Article 274 of Indian Constitution make sure the President's approval is compulsory for introducing taxation-related matters in legislation and Parliament, safeguarding states' financial interests and fostering balance in India's federal system. Here's a simplified interpretation in points:

• Presidential Recommendation: Bills impacting State-related taxation require the President's prior approval before introduction in Parliament.
• Scope of Bills: Includes legislation altering agricultural income definitions, tax distribution principles, or imposing surcharges affecting States.
• State Interests: Article 274 of Indian Constitution protects states' financial concerns and ensures their interest are considered in tax matters.
• Federal Balance: It Promotes cooperation and fiscal harmony between the Union and States, that preserves India's federal structure.
• Definition of Taxes: Applies to taxes assigned to States or drawn from the Consolidated Fund of India.
• Legislative Oversight: Prevents fiscal imbalances by evaluating financial legislation.
• Constitutional Safeguard: Reflects fairness and accountability in financial governance as envisioned by the Constitution's makers.

Article 274 of Indian Constitution Significance

• Article 274 of Indian Constitution secures states' interests are protected by requiring the President's approval for taxation laws affecting state revenues. Here's the significance of Indian Constitution explained in points:
• President's Recommendation: Article 274 of the Constitution of India requires the President's recommendation for Bills containing the provisions affecting the taxation in States, in order to protect the financial interests of the State.
• Coverage: Bill(s) establishing or changing Standards Definitions of agricultural income, Principles of tax-sharing, or Surcharge, etc. which affect States.
• Financial independence of the States: Ensure that States are consulted before any law relating to taxation is enacted by the Parliament.
• Coordination with the Union: Art 274 of the Indian Constitution provides for cooperation between the Union and the States in the administration of taxes and for their revenues to be equitably shared between to promote fair and balanced taxation policy.
• Constitutional Vision: Article 274 of the Constitution shows fairness and responsibility, staying true to the principles of India's federal system.
• Fiscal Stability: It increases the economic balance and stability within India's intricate federal system.
• Collaborative Governance: Article 274 of Indian Constitution emphasizes the need for oversight and teamwork in preserving India's federal structure.

Article 274 of Indian Constitution has no notable landmark judgements interpreting it and prevent president's recommendation for bills affecting state taxation, including defining agricultural income or changing tax distribution principles. Its procedural nature likely minimises legal challenges by addressing disputes early through consultation. Article 274 of Indian Constitution addresses the Union and State cooperations, which ensure federal harmony in taxation. While this article lacks significant judicial scrutiny related to cases that address broader federal taxation and legislative procedure issues.

Conclusion

Article 274 of Indian Constitution states Consultation and Team-work in Federal system. It's a Bill for which it needs the President consent because its an amendment of Provisions for State taxation. This stipulation balances the power of the Union and the autonomy of the States, and is conducive to financial harmony." This could apply to Bills in relation to definitions of income for agricultural purposes, tax-sharing formulas, or fresh surcharges. It reflects the framers' aim for fairness and responsibility in financial decisions, preventing one-sided actions that might harm the federal system. Overall, Article 274 ensures taxation policies are fair and considerate of both Union and State needs.