Entry 49 of the State List (List II of the Seventh Schedule) is a provision in the Constitution of India that grants State Legislatures the exclusive power to make laws for levying "Taxes on lands and buildings". This provision was created when the Constitution was enacted in 1950 to establish a clear division of legislative and financial powers between the Union and the States, a core principle of India's federal structure.
The entry works by conferring an independent taxing power on the States, allowing them to impose a tax on the unit of land and buildings, which is distinct from a tax on income or a tax on mineral rights. The Supreme Court has clarified that this power is broad, covering land of every description, and permits the taxation of land "as a unit, irrespective of the use to which it is put".
This provision is central to the concept of Fiscal Federalism and is closely connected to Entry 50 of the State List ("Taxes on mineral rights") and Entry 54 of the Union List ("Regulation of mines and mineral development"). A significant recent development occurred with the Supreme Court's 2024 judgment in Mineral Area Development Authority v. Steel Authority of India Ltd.. The nine-judge Constitution Bench held that the State's power under Entry 49 includes the authority to tax mineral-bearing land. The Court ruled that this State taxing power is not limited by the Union Parliament's regulatory power over mineral development under Entry 54 of the Union List. This judgment also distinguished royalty from a tax. Despite this judicial clarity, the Union government recently attempted to restrict State levies on mineral lands through an amendment to the Mines & Minerals (Development & Regulation) Act, 2026, which has sparked a constitutional debate over the extent of the Union's power to limit State taxation rights under Entry 49.