Home The Constitution Part XII Article 276

Art. 276 Part XII: Finance, Property, Contracts and Suits

Taxes on Professions, Trades, Callings and Employments

Exact text — Constitution of India

(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.

In Plain English

What this Article actually means

This Article specifically permits states (and local bodies) to tax professions, trades and employment — even though this might otherwise look like an 'income tax' (a Union subject under the Union List) — while capping the total amount any one person can be charged annually across all such professional taxes at ₹2,500 (a figure fixed decades ago and now largely nominal in real terms).

Why This Matters To You

How it shows up in everyday life

This is the constitutional basis for the 'Professional Tax' you may see deducted from your salary if you work in certain states (like Maharashtra, Karnataka, West Bengal, and others that levy it) — a small state-level tax specifically permitted despite the general rule that income taxation belongs to the Union.

Read alongside this one

Labour & Employment Rights

Frequently Asked

Quick answers about Article 276

Do all states charge professional tax?

No — professional tax is optional and only some states/UTs have chosen to levy it; it doesn't apply uniformly across the whole country.

Is the ₹2,500 cap adjusted for inflation?

No — it's a fixed figure in the constitutional text itself, meaning that while nominally still the legal ceiling, its real value has diminished considerably since 1950 relative to overall wage levels.

← PreviousArticle 275: Grants From the Union to Certain States Next →Article 277: Savings

The text above reproduces Article 276 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.