Part XII - Finance & Property • Article

Article 272 Simplified: Taxes which are levied and collected by the Union and may be distributed between the Union and the States

Article 272 allowed the central government to share certain taxes with states if Parliament passed a law for it. In 2000, this sharing system was simplified so that all central taxes are shared with states automatically under a single pool (Article 270), making Article 272 redundant, and it was subsequently omitted.

Official Text

Omitted by the Constitution (Eightieth Amendment)Act, 2000, s. 4. (w.e.f. 9-6-2000).

Simple Meaning

Explain Like Ten

This was a rule that said the central government 'could' share tax money with states if it wanted to. We changed it so the central government MUST share a set share of all tax money, so we deleted the old rule.

Student Mode

Provided for sharing of union taxes with states under parliamentary legislation. Omitted by the 80th Constitutional Amendment Act (2000) when tax sharing was simplified to give states a fixed share of the total tax pool under Article 270.

Example

Before 2000, only specific taxes like union excise duties were shared with states under Article 272. Now, all central taxes (corporate tax, income tax, customs) are pooled and shared, so a separate sharing clause was deleted.

Key Takeaway

The omission of Article 272 simplified and centralized the tax sharing pool, ensuring states get a fairer, predictable revenue share.

FAQs

What was the function of Article 272?

It enabled the sharing of certain taxes (like union excise duties) with states based on laws passed by Parliament.

Which amendment omitted Article 272?

The 80th Constitutional Amendment Act of 2000 omitted Article 272.

Quiz

Which amendment omitted Article 272 to simplify tax sharing?

Answer: 80th Amendment

Under the new system, tax sharing is mainly governed by which active article?

Answer: Article 270