Constitution of India, 1949
274.Prior recommendation of President required
to Bills affecting taxation in which States are interested.-
(1) No Bill or amendment which imposes or
varies any tax which varies any tax or duty in which States are interested, or
which varies the meaning of the expression "agricultural income" as
defined for the purposes of the enactments relating to Indian income-tax, or
which affects the principles on which under any of the foregoing distributable
to State, or which imposes any surcharge for the purposes of the Union as is
mentioned in the foregoing provisions of this Chapter, shall be introduced or
moved in either House or Parliament except on the recommendation of the
President. (2) In this article, the expression "tax or duty in which
States are interested" means-
(a) a tax or duty the
whole or part of the net proceeds whereof are assigned to any State; or
(b) a tax or duty by
reference to the net proceeds whereof sums are for the time being payable out
of the Consolidated Fund of India to any State.