(1)Where under any covenant or agreement entered into by the Ruler of any Indian State before the commencement of this Constitution, the payment of any sums, free of tax, has been guaranteed or assured by the Government of the Dominion of India to any Ruler of such State as privy purse—(a)such sums shall be charged on, and paid out of, the Consolidated Fund of India; and(b)the sums so paid to any Ruler shall be exempt from all taxes on income.(2)Where the territories of any such Indian State as aforesaid are comprised within a State specified in Part A or Part B of the First Schedule, there shall be charged on, and paid out of, the Consolidated Fund of that State such contribution, if any, in respect of the payments made by the Government of India under clause (1) and for such period as may, subject to any agreement entered into in that behalf under clause (1) of article 278, be determined by order of the President.[Repealed by the Constitution (Twenty-sixth Amendment) Act, 1971.][Editorial comment-The Constitution (Twenty-Sixth Amendment) Act, 1971, the 26th Amendment of Indian Constitution of 1971 removed Articles 291. The former dealt with the details of privy purse sums and the latter guaranteed specific rights and privileges to rulers of princely states. The ‘privy purse’ was guaranteed by Articles 291 in the Indian constitution, which ensured that princes would receive tax-free privy purses, equivalent to one-fourth of the money they earned earlier. Thus, with the omission of Articles 291, the privy purse which was paid to former princely states was removed.Important Verdict-Shri Raghunathrao Ganpatrao vs Union Of India ]
