Law and You > Constitutional Law > Freedom as to payment of taxes for promotion of any particular religion (Article 27)
The financial requirements of a welfare State are met by way of taxes. As a matter of justice, all who have the capacity to pay tax share the tax burden. Tax exemption is not a right but a grace granted by the State on certain reasonable grounds. It has been customary from ancient time onwards both in the East and West to assist religion by giving tax exemption to religious personnel, institutions and properties. Let us discuss Article 27 which deals with freedom as to payment of taxes for promotion of any particular religion.
Article 27:
Freedom as to payment of taxes for promotion of any particular religion.-
No person shall be compelled to pay any taxes, the proceeds of which are specifically appropriated in payment of expenses for the promotion or maintenance of any particular religion or religions denomination.
Article 27 lays down that no person shall be compelled to pay any taxes for the promotion or maintenance of any particular religion or religious denomination. In other words, the State should not spend the public money collected by way of tax for the promotion or maintenance of any particular religion. This provision prohibits the State from favouring, patronising and supporting one religion over the other. This means that the taxes can be used for the promotion or maintenance of all religions.
This provision prohibits only levy of a tax and not a fee. This is because the purpose of a fee is to control secular administration of religious institutions and not to promote or maintain religion. Thus, a fee can be levied on pilgrims to provide them some special service or safety measures. Similarly, a fee can be levied on religious endowments for meeting the regulation expenditure.
In Commissioner, Hindu Religious Endowments, Madras v. Sri Lakshmindra Thirtha Swamiar of Sri Shirur Mutt case, the Madras legislature enacted the Madras Hindu Religious and Charitable Endowment Act, 1951 and contributions were levied under the Act. One of the contentions of the appellant in this case was that the contribution levied from their religious institutions was a tax because the proceeds of the levy was not earmarked and kept apart to meet the expenses of the Board but formed part of the revenue of the State of Madras. Therefore, the plaintiff pleaded that it violated article 27 of the Constitution. It was held by the Supreme Court that though the contribution levied was tax but the object of it was for the proper administration of the religious institution. Court further observed that what is forbidden by the Article is the specific appropriation of the proceeds of any tax in payment of expenses for the promotion or maintenance of any particular religion or religious denomination. The reason underlying this provision is obvious. Ours being a secular state and there being freedom of religion guaranteed by the Constitution, both to individuals and to groups it is against the policy of the Constitution to pay out of public funds any money for the promotion or maintenance of any particular religion or religious denomination.
In Kidangazhi Manakkal Narayanan Nambudiripad v. State of Madras; AIR 1954 Mad 385 case, the Supreme Court indicated that the purpose of the contribution was to see that religious trusts and institutions wherever they existed were properly administered. This was a secular administration of the religious institutions with the objective of ensuring that the endowments bequeathed to religious institutions were justly administered and their income was duly utilised for the purposes to which they were established. This implies that it is constitutionally valid to levy tax for religious purposes on condition that the proceeds of which are used non-preferentially for the benefit of the religious cause.
Conclusion:
According to Article 27 of the Constitution, there can be no taxes, the proceeds of which are directly used for the promotion and/or maintenance of any particular religion/religious denomination.