Article 265 of the Indian Constitution is a fundamental safeguard ensuring that no tax can be levied or collected without proper legislative authority. This provision reinforces fairness and transparency in India’s fiscal system, protecting citizens from arbitrary taxation while upholding the rule of law. By requiring all taxes to be grounded in law, Article 265 strengthens trust between the state and its citizens and maintains accountability in public finance.

The Supreme Court of India has consistently emphasized the importance of Article 265, holding that any tax imposed without legislative backing is invalid. Judicial decisions have clarified that both the imposition and collection of taxes must have explicit statutory authorization. This principle ensures that taxpayers are treated fairly and that fiscal policies remain within the boundaries of the Constitution.

In practice, Article 265 underpins major taxation laws in India, including the Income-tax Act, 1961, which governs direct taxes. It specifies taxable entities, the manner of assessment, and the mechanisms for collection, ensuring that every action of the tax authorities aligns with constitutional requirements. Over the years, reforms and technological advancements have made compliance easier, such as pre-filled forms, digital reminders, and simplified return processes, fostering voluntary adherence while minimizing disputes.

Recent developments, including the introduction of the new Income-tax Act, 2025, reflect a commitment to clarity, simplification, and fairness. The reforms aim to reduce ambiguities, streamline processes, and make tax obligations more predictable for individuals and businesses alike. By emphasizing lawful taxation, Article 265 not only upholds citizens’ rights but also strengthens India’s economic governance and fiscal sustainability.

Ultimately, Article 265 is a cornerstone of fiscal justice, ensuring that taxation in India is transparent, equitable, and accountable. Its continued enforcement plays a critical role in building trust in public institutions and supporting the nation’s broader economic development objectives.