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1 mark

In India, non-agricultural income tax is:

  1. A
    levied by the Centre and fully distributed among the States.
  2. B
    levied by the States.
  3. C
    levied and appropriated by the Centre.
  4. D
    levied by the Centre and shared with the States.

Solution & Step-by-step Explanation

Under the constitutional provisions governing Center-State financial relations (Article 270), non-agricultural income taxes are levied and collected by the Union Government (Centre) but are distributed/shared between the Centre and the States based on the recommendations of the Finance Commission.

Practice this question

Try it yourself before checking the explanation above.

In India, non-agricultural income tax is:
A
levied by the Centre and fully distributed among the States.
B
levied by the States.
C
levied and appropriated by the Centre.
D
levied by the Centre and shared with the States.

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