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In India, Municipal Councils or Town Municipalities  or Nagar Palika or Nagar Palika Parishad or Municipality is an urban local body that administers a city of population 100,000 or more than. However, there are exceptions to that, as previously Nagar Palikas were constituted in urban centers with population over 20,000, so all the urban bodies which were previously classified as Nagar Palikas were reclassified as Nagar Palikas even if their population was under 100,000. Under the Panchayati Raj system, it interacts directly with the state government, though it is administratively part of the district it is located in. Generally, smaller district cities and bigger towns have a Nagar Palika. Nagar Palikas are also a form of local self-government entrusted with some duties and responsibilities, as enshrined in the Constitutional (74th Amendment) Act,1992. Under Article 243Q , it became obligatory for every state to constitute such units.
The 74th amendment made the provisions relating to Urban Local Governments (Nagarpalikas). 
Three Tier Structure:
- Municipal Corporations
- Municipal Councils
- Nagar Panchayats
The members of the Nagar Palika are elected representatives for a term of five years. The town is divided into wards according to its population, and representatives are elected from each ward. The members elect a president among themselves to preside over and conduct meetings. Employees of state government of India, including Chief Officer, Town Planning Engineer, Auditor, Sanitary Inspector, Medical Officer for Health, and Education Officer among many others, who come from the state public services are appointed to handle the administrative affairs of the Nagar Palika.
The Nagar Palika is responsible for
- Water supply
- Street lighting
- Fire brigade
- Market places
- Records of births and deaths
- Solid waste management
Sources of Income
A steady and adequate supply of funds is essential for smooth running of all these programmes. The various sources of income of municipal bodies are : 1. The income from taxes: House tax, entertainment tax, electricity tax, water tax ( in certain cities), and tax on vehicles, property and land. 2. Octroi duty on goods being brought in and taken out of the city. Toll tax also forms a basis of income. 3. Income is also generated from commercial activities like hotels, tourist centres, renting and sale of municipal property, education cess, etc. 4. Financial grants from state government is a major source of income for all municipal bodies. Loans are also provided if special projects are undertaken for the welfare of the citizens.
- Our Civic Life (Civics and Administration) Maharashtra State Bureau of Textbook Production and Curriculum Research, Pune
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