Inter-governmental Immunity from Taxation

Abstract

Union and the States have no concurrent powers of taxation. The absence of joint occupancy of tax fields is to avoid duplication in administration and minimize tax rivalry between the Center and States, and among the States themselves.  The residuary powers of taxation, as in general legislation, belong to the Union. Both the articles 285 and 289 envisage inter-governmental immunity from taxation-that of the Union absolute but that of the State qualified. Functionaries under the Income Tax give thousands of job opportunities to the people. Hundreds of branches of studies are conducted based on the taxing statutes. An effectively administered tax system in the hands of the Government becomes a major weapon against many odds.