Part XII · Finance, Property, Contracts and Suits · Miscellaneous Financial Provisions
Article 289: Exemption of property and income of a State from Union taxation
Text of Article 289
(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 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.
Words in [square brackets] were inserted or substituted by later amendments (see below). Source: Legislative Department, Ministry of Law and Justice, Government of India
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