Articles 264, 265 and 266 of the Constitution of India
Part XII of the Constitution deals with finance, property, contracts and suits. Articles 264 to 266 begin Chapter I on Finance and explain the Finance Commission reference used in Part XII, the constitutional requirement that taxation must have authority of law, and the Consolidated Funds and Public Accounts of the Union and the States.
Constitutional text checked against the official Constitution of India published by the Legislative Department, Ministry of Law and Justice.
| Article | Subject | Core rule |
|---|---|---|
| 264 | Interpretation | Defines "Finance Commission" for Part XII by reference to Article 280. |
| 265 | Authority of law for taxation | A tax cannot be levied or collected except by authority of law. |
| 266 | Consolidated Funds and Public Accounts | Classifies specified government receipts and restricts appropriation from Consolidated Funds to the constitutional process and law. |
Article 264 - Interpretation
Article 264 is a definition provision. Its purpose is to make clear that references to the Finance Commission in Part XII are references to the constitutional Finance Commission established under Article 280. Article 280 provides for constitution of the Finance Commission by the President and sets out its principal constitutional functions concerning specified financial relations between the Union and the States.
Article 265 - Taxes not to be imposed save by authority of law
Article 265 places a constitutional limitation on the power to impose and collect a tax. Both the levy and the collection must be supported by law. In practical terms, an executive demand by itself cannot substitute for the legal authority required for taxation.
Meaning of "authority of law"
For Article 265, the taxing power must rest on a valid legal provision. The tax, the person or transaction made liable, and the collection must operate within the applicable law. Article 265 therefore functions as a basic constitutional safeguard in Indian taxation.
Article 266 - Consolidated Funds and Public Accounts of India and the States
Article 266 establishes the principal constitutional framework for government receipts and public money at the Union and State levels.
Article 266(1): Consolidated Fund of India and Consolidated Fund of each State
Subject to Article 267 and the provisions of Chapter I concerning assignment of the whole or part of the net proceeds of certain taxes and duties to the States, Article 266(1) places specified receipts into the relevant Consolidated Fund. At the Union level these include revenues received by the Government of India, loans raised through treasury bills, loans or ways and means advances, and money received in repayment of loans. Corresponding State receipts form the Consolidated Fund of that State.
Article 266(2): Public Account
Other public moneys received by or on behalf of the Government of India or a State Government are credited to the Public Account of India or the Public Account of the State, as applicable.
Article 266(3): Appropriation only in accordance with law
No money may be appropriated from the Consolidated Fund of India or a State except in accordance with law and for the purposes and in the manner provided by the Constitution. This links withdrawal and appropriation of public money to constitutional and legislative control over public expenditure.
How Articles 264, 265 and 266 work together
These provisions address different parts of constitutional finance. Article 264 supplies a definition used in Part XII; Article 265 requires legal authority for taxation; and Article 266 governs the constitutional destination and appropriation of major categories of public money. The succeeding provisions of Part XII deal with matters including the Contingency Fund and Article 268, distribution of tax revenues, grants and the Finance Commission.
Official constitutional source
The current official Constitution text can be checked on the Legislative Department, Ministry of Law and Justice. The official text confirms the headings and provisions of Articles 264, 265 and 266 and notes that Article 264 was substituted by the Constitution (Seventh Amendment) Act, 1956.