Home The Constitution Part XII Article 274

Art. 274 Part XII: Finance, Property, Contracts and Suits

Prior Recommendation of President Required for Bills Affecting Taxation in Which States Are Interested

Exact text — Constitution of India

(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... moneys are or may be distributable to States... or which imposes any such 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.

In Plain English

What this Article actually means

This Article adds a procedural safeguard — any Bill affecting taxes in which states have a financial stake (or the revenue-distribution formula itself) can't even be introduced in Parliament without the President's prior recommendation, ensuring the executive has specifically reviewed and endorsed such fiscally significant, state-affecting legislation before it's formally tabled.

Why This Matters To You

How it shows up in everyday life

This is a check on how casually fiscal federalism arrangements can be altered — a private member or even a government minister can't simply introduce a Bill changing how tax revenue is shared with states without this specific procedural gatekeeping step first.

Read alongside this one

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

Frequently Asked

Quick answers about Article 274

Does this Article give states themselves veto power over such Bills?

No — it requires the PRESIDENT's prior recommendation (acting on the Union Cabinet's advice) before introduction, not state government consent directly; it's a procedural check within the Union government's own process, not a direct state veto.

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The text above reproduces Article 274 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.