The concept is Article 265 of the Constitution of India, a fundamental constitutional provision located in Part XII (Finance, Property, Contracts, and Suits). It was created to solve the problem of arbitrary or executive taxation, embodying the principle of "no taxation without representation". The provision was introduced as a new Draft Article 248 on August 4, 1949, and states: "No tax shall be levied or collected except by authority of law". This mechanism ensures that the government cannot impose or collect any tax based on administrative orders, executive instructions, or departmental circulars alone; it requires a validly enacted statute passed by a competent legislature. The key provision mandates that both the levy (imposition) and collection (actual recovery) of a tax must be legally sanctioned. Article 265 connects directly to the constitutional scheme of fiscal federalism, working in conjunction with Article 246, which distributes legislative powers for taxation between the Parliament and State Legislatures through the Seventh Schedule. It also remains highly relevant to the Goods and Services Tax (GST) framework, introduced by the 101st Constitutional Amendment (2016), which added Article 246A. The principle has been consistently upheld by the judiciary; for instance, in Kunnathat Thathunni Moopil Nair v. State of Kerala (1961), the Supreme Court struck down a land tax for lacking proper legal authority and violating Article 265. There have been no recent changes to the text of Article 265 itself, but its application has been reaffirmed in the context of new tax laws like the GST.
UPSC Dictionary
Did you know?
The Border Security Force (BSF) is the world's largest border guarding force, protecting India's borders with Pakistan and Bangladesh.
Generating explanation with verified sources...