Part IX · CHAPTER VI.—SUBORDINATE COURTS
Article 243H Powers to impose taxes by, and Funds of, the Panchayats.
This article gives Panchayats their money powers. A State may authorise a Panchayat to levy, collect, and appropriate taxes, duties, tolls, and fees. A State may also assign to a Panchayat taxes collected by the State. And a State may make grants-in-aid to Panchayats from its Consolidated Fund. A State may establish a Fund for each Panchayat and its use.
- 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.
What it means
Plain words summary of the article above. Not legal advice.
This article gives Panchayats their money powers. A State may authorise a Panchayat to levy, collect, and appropriate taxes, duties, tolls, and fees. A State may also assign to a Panchayat taxes collected by the State. And a State may make grants-in-aid to Panchayats from its Consolidated Fund. A State may establish a Fund for each Panchayat and its use.