Home The Constitution Part XII Article 279

Art. 279 Part XII: Finance, Property, Contracts and Suits

Calculation of 'Net Proceeds', etc.

Exact text — Constitution of India

(1) In the foregoing provisions of this Chapter, 'net proceeds' means in relation to any tax or duty the proceeds thereof reduced by the cost of collection, and for the purposes of those provisions the net proceeds of any tax or duty, or of any part of any tax or duty, in or attributable to any area shall be ascertained and certified by the Comptroller and Auditor-General of India, whose certificate shall be final.

In Plain English

What this Article actually means

A technical but important Article — it defines 'net proceeds' (gross tax collected minus collection costs) for purposes of the various revenue-sharing formulas elsewhere in Part XII, and — significantly — gives the Comptroller and Auditor-General (CAG) the FINAL word on certifying this figure, keeping this calculation independent of government self-assessment.

Why This Matters To You

How it shows up in everyday life

This is why the CAG's certification, not a government department's own accounting, determines the exact 'net proceeds' figure that feeds into how much revenue states actually receive under the various sharing formulas — an important independence safeguard in a process that could otherwise be prone to dispute.

Read alongside this one

Art. 148 — Comptroller and Auditor-General of India

Frequently Asked

Quick answers about Article 279

Can the government dispute the CAG's net proceeds calculation?

This Article specifically makes the CAG's certificate 'final', reflecting the deliberate choice to keep this calculation outside ordinary government control, given how much money and inter-state fiscal fairness depends on getting it right.

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The text above reproduces Article 279 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.