Home The Constitution Part XII Article 271

Art. 271 Part XII: Finance, Property, Contracts and Suits

Surcharge on Certain Duties and Taxes for Purposes of the Union

Exact text — Constitution of India

Notwithstanding anything in articles 269 and 270, Parliament may at any time increase any of the duties or taxes referred to in those articles by a surcharge for purposes of the Union and the whole proceeds of any such surcharge shall form part of the Consolidated Fund of India.

In Plain English

What this Article actually means

This Article lets Parliament add a 'surcharge' on top of otherwise shareable taxes — but crucially, unlike the underlying tax itself, the ENTIRE surcharge revenue stays with the Union and isn't shared with states under the normal Article 270 devolution formula.

Why This Matters To You

How it shows up in everyday life

This is a genuinely significant and sometimes contentious fiscal federalism issue — because surcharges and cesses (a related concept) aren't shared with states the way ordinary tax revenue is, some analysts and state governments have raised concerns about the Union increasingly relying on surcharges/cesses specifically because it keeps more revenue centrally, rather than because of the surcharge's stated specific purpose.

Read alongside this one

Art. 270 — Taxes Levied and Distributed Between the Union and the States

Frequently Asked

Quick answers about Article 271

Why would the Union prefer a surcharge over simply raising the base tax rate?

Because ordinary tax revenue increases get shared with states under Article 270's devolution formula, while surcharge revenue stays entirely with the Union — a structural incentive that has drawn policy criticism as potentially undermining genuine fiscal federalism.

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The text above reproduces Article 271 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.