Constitution of India, 1949
243X. Power to impose taxes by, and funds, of,
the Municipalities.—
The Legislature of a State may, by law—
(a) authorize a Municipality 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 Municipality 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 Municipalities
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 Municipalities and also
for the withdrawal of such moneys there from, as may be specified in the law.