Home The Constitution Part IX Article 243H

Art. 243H Part IX: The Panchayats

Powers to Impose Taxes by, and Funds of, the Panchayats

Exact text — Constitution of India

The Legislature of a State may, by law,—(a) authorise a Panchayat to levy, collect and appropriate such taxes, duties, tolls and fees in accordance with such procedure and subject to such limits; (b) assign to a Panchayat such taxes, duties, tolls and fees levied and collected by the State Government...; (c) provide for making such grants-in-aid to the Panchayats from the Consolidated Fund of the State; and (d) provide for constitution of such Funds for crediting all moneys received... by or on behalf of the Panchayats and also for the withdrawal of such moneys therefrom, as may be specified in the law.

In Plain English

What this Article actually means

This Article gives Panchayats their financial foundation — states can authorise them to levy their own local taxes/fees, assign a share of state-collected taxes to them, provide direct grants, and establish dedicated Panchayat Funds to manage this money. Without financial resources, the powers granted under Article 243G would be largely theoretical.

Why This Matters To You

How it shows up in everyday life

This is why some Panchayats can actually fund and implement local development projects while others struggle — the real-world functioning of local government depends heavily on how generously (or not) a state has exercised this Article's revenue-sharing and taxation-authorization power.

Read alongside this one

Art. 243-i — Constitution of Finance Commission Art. 243g — Powers, Authority and Responsibilities of Panchayats

Frequently Asked

Quick answers about Article 243H

Can a Panchayat set its own tax rates freely?

Only within limits the state legislature has authorised — Panchayats can't independently create new taxes; they operate within the specific taxation powers and procedures the state has granted them under this Article.

← PreviousArticle 243G: Powers, Authority and Responsibilities of Panchayats Next →Article 243-I: Constitution of Finance Commission to Review Financial Position

The text above reproduces Article 243H 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.