Article 243H of Indian Constitution

Article 243H: Powers to impose taxes by, and Funds of, the Panchayats

• 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 for such purposes and subject to such conditions and limits;
  • (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, respectively, by or on behalf of the Panchayats and also for the withdrawal of such moneys therefrom,
• as may be specified in the law.