Amendment status not verified — confirm the current text below against the official source.
(1) The property and income of a State shall be exempt from Union taxation. (2) Nothing in clause (1) shall prevent the Union from imposing, or authorising the imposition of, any tax to such extent, if any, as Parliament may by law provide Exemption from taxation by States in respect of water or electricity in certain cases. Exemption of property and income of a State from Union taxation. THE CONSTITUTION OF INDIA (Part XII.—Finance, Property, Contracts and Suits.— Arts. 287—289.) 172 in respect of a trade or business of any kind carried on by, or on behalf of, the Government of a State, or any operations connected therewith, or any property used or occupied for the purposes of such trade or business, or any income accruing or arising in connection therewith. (3) Nothing in clause (2) shall apply to any trade or business, or to any class of trade or business, which Parliament may by law declare to be incidental to the ordinary functions of Government.