What is Article 277 of Indian Constitution – Defination & Meaning

Article 277: Savings Any taxes, duties, cesses or fees which, immediately before the commencement of this Constitution, were being lawfully levied by the
📅 Part XII – Finance, Property, Contracts and Suits
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Article Number

277

part

Part XII – Finance, Property, Contracts and Suits

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Active

Bare Acts Text

Article 277: Savings

  • Any taxes, duties, cesses or fees which, immediately before the commencement of this Constitution, were being lawfully levied by the Government of any State or by any municipality or other local authority or body for the purposes of the State, municipality, district or other local area may, notwithstanding that those taxes, duties, cesses or fees are mentioned in the Union List, continue to be levied and to be applied to the same purposes until provision to the contrary is made by Parliament by law.
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Full Definition & Explanation

Article 277 of the Indian Constitution addresses the continuation of certain taxes, duties, cesses, and fees that were legally collected by state governments, municipalities, or local authorities before the Constitution came into effect. This means that any such charges that were in place can continue to be collected even if they are mentioned in the Union List, which typically gives the central government authority over these matters. The article ensures that local governments can maintain their revenue streams without disruption as the Constitution is implemented. The article affects local governance by allowing state and municipal authorities to keep their financial systems intact. It protects local revenue sources while the new constitutional framework is applied. This provision is particularly key for smaller municipalities that rely heavily on local taxes and fees for funding necessary services. By allowing these charges to continue, Article 277 supports the operational stability of local governments during a period of major legal transition. Also, the continuation of these taxes remains until Parliament decides otherwise through law. This creates a balance between local autonomy and central authority, ensuring local bodies can function without immediate upheaval. For example, a municipality that levies a water charge can continue to do so, ensuring funds for local water supply services. In practice, this article helps maintain local governance and community welfare, allowing local bodies to adapt to constitutional changes gradually.

Historical Context

Article 277 was included in the Constitution when it was adopted in 1950. During the Constituent Assembly debates, members recognized the need for local authorities to maintain their revenue sources even amid major constitutional changes. The article was intended to facilitate a smooth transition for local governance as the Constitution took effect. There have been no major amendments to this article, but it has been referenced in various Supreme Court cases that discuss local governance and taxation powers. One notable case is the Municipal Corporation of Delhi vs. Birla Cotton Mills, which highlighted the rights of local bodies to levy taxes.

Key Features

– It allows taxes collected before the Constitution to continue unabated.
– Local authorities can maintain their revenue without immediate legal changes.
– It applies to state governments, municipalities, and local bodies.
– Parliament has the power to change this by enacting a law.
– This article ensures local governance stability during constitutional transition.

Importance & Impact

– Local authorities can continue collecting taxes even after constitutional changes occur.
– This article supports financial stability for municipalities and local areas effectively.
– The provision helps ensure that necessary public services are funded by local taxes.
– The central government can only intervene by enacting a specific new law.
– This provision assists local governments in managing legal transitions smoothly.

Sample UPSC Question

Consider the following statements regarding Article 277 of the Indian Constitution: A. It allows local taxes to continue without interruption. B. Only the central government can levy taxes mentioned in the Union List. C. Local authorities cannot change their tax structures after the Constitution. D. Parliament can modify these taxes through a new law. Which of the statements are correct? Select the correct answer from the options given below.
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer

The correct answer is A and D. Article 277 allows local taxes to continue and gives Parliament the authority to modify them through legislation. Options B and C are incorrect because local authorities can still levy taxes until Parliament intervenes.

Key Takeaways

✓ Article 277 allows local taxes to continue smoothly.
✓ It helps maintain local governance during constitutional changes effectively.
✓ Parliament can modify these taxes through new legislation if required.
✓ Local authorities retain their financial systems under this article without interruption.
✓ It addresses various local fees and charges effectively for sustainability.

FAQs

Article 277 of the Indian Constitution addresses the continuation of certain taxes, duties, cesses, and fees that were legally collected by state governments, municipalities, or local authorities before the Constitution came into effect. This means that any such charges that were in place can continue to be collected even if they are mentioned in the Union List, which typically gives the central government authority over these matters. The article ensures that local governments can maintain their revenue streams.

This provision is particularly key for smaller municipalities that rely heavily on local taxes and fees for funding necessary services. By allowing these charges to continue, Article 277 supports the operational stability of local governments during a period of major legal transition. Also, the continuation of these taxes remains until Parliament decides otherwise through law.

This creates a balance between local autonomy and central authority, ensuring local bodies can function without immediate upheaval. For example, a municipality that levies a water charge can continue to do so, ensuring funds for local water supply services. In practice, this article helps maintain local governance and community welfare, allowing local bodies to adapt to constitutional changes gradually.

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