Home The Constitution Part XII Article 270

Art. 270 Part XII: Finance, Property, Contracts and Suits

Taxes Levied and Distributed Between the Union and the States

Exact text — Constitution of India

(1) All taxes and duties referred to in the Union List, except the duties and taxes referred to in articles 268, 268A and 269, respectively, surcharge on taxes and duties referred to in article 271 and any cess levied for specific purposes... shall be levied and collected by the Government of India and shall be distributed between the Union and the States in the manner provided in clause (2). (2) Such percentage, as may be prescribed, of the net proceeds of any such tax or duty in any financial year shall not form part of the Consolidated Fund of India, but shall be assigned to the States...

In Plain English

What this Article actually means

This is the general, default revenue-sharing rule covering most central taxes (like income tax) not otherwise specifically addressed by Articles 268-269A — the Union collects them, and a prescribed percentage (recommended periodically by the Finance Commission under Article 280) gets distributed to the states, forming the backbone of India's tax devolution system.

Why This Matters To You

How it shows up in everyday life

This is the Article behind the large, headline 'tax devolution' percentage figures you might hear discussed after each Finance Commission report — it determines what share of central tax revenue (like income tax collections) actually flows to state governments to fund their own spending.

Read alongside this one

Art. 280 — Finance Commission

Frequently Asked

Quick answers about Article 270

What determines the exact percentage of tax revenue that goes to states under this Article?

The Finance Commission (constituted under Article 280) recommends this percentage every 5 years, and it has been a major, closely-watched figure in India's fiscal federalism debates (for example, the 15th Finance Commission recommended 41% devolution to states).

← PreviousArticle 269A: Levy and Collection of Goods and Services Tax in Course of Inter-State Trade or Commerce Next →Article 271: Surcharge on Certain Duties and Taxes for Purposes of the Union

The text above reproduces Article 270 of the Constitution of India as amended to date, for general educational reference. It is public-domain legislative text, but we recommend cross-checking the authoritative version at legislative.gov.in or india.gov.in before relying on it for a legal matter. The explanation, examples and FAQs are general information, not legal advice — consult a qualified advocate for guidance on your specific situation.