State Properties Shielded from Union Taxation: Constitutional Safeguards Protect Government Assets While Allowing Limited Fiscal Oversight

Constitutional provision establishing tax exemption for state properties and income under the Indian Constitution. States are generally exempt from Union taxation, with specific exceptions for state-run trades, businesses, and related income. Parliament retains authority to impose taxes on state commercial activities, excluding trades considered incidental to core governmental functions. The provision balances fiscal autonomy of states with potential revenue generation by the Union government.

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