Constitution of India, 1949
243H. Powers to impose taxes by, and funds of,
the Panchayats. —
The Legislature of a State may, by law,—
(a) authorize 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 there from, as may be specified in the law.