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Article 265 of the Indian Constitution focuses on fiscal justice by mandating that taxes must be lawful transparent and fair. It builds a foundation of trust between the state and its citizens while shaping the nation’s governance and growth. Taxation in India is more than revenue collection and it focuses on governance by funding welfare programmes infrastructure and national development. Within this framework Article 265 is also the backbone of fiscal justice as it gives absolute clarity: “No tax shall be levied or collected except by authority of law.” This principle brings taxation in legality and also protects citizens from arbitrary impositions and ensures the state operates strictly within the rule of law. Link Of Article 265 And Income-tax Act 1961 The Income-tax Act 1961 which is the foundation of India’s direct tax system derives its authority from Article 265. This is because taxation is not only a legal requirement but also a moral obligation for achieving equitable growth. Article 265 As a Constitutional Shield For Indian Citizens The Supreme Court has repeatedly reinforced the sanctity of Article 265. For example: In Tata Iron and Steel Co. Ltd. vs. State of Bihar (2005) the Court held that the levy and collection of taxes or fees must be supported by explicit legislative authority. In CIT vs. Distillers Co. Ltd. (2007) it clarified that penalties and excise duties are valid only when backed by law. In Common Cause vs. Union of India (2005) the Court ruled that fiscal measures without statutory support violate the rule of law. These judgments collectively emphasize that taxation is legitimate only when legislated. Judicial vigilance thus ensures that citizens are protected from arbitrary fiscal burdens while transparency accountability and legality remain intact in public finance. Income-tax Act In Practice The Income-tax Act 1961 operationalises Article 265 by clearly defining what constitutes taxable income determining liability methods of computation and collection mechanisms whether through TDS advance tax or assessments.