Loading...
UPSC 1999: Which one of the following statements regarding the levying, collecting and distribution of Income Tax is correct?
(a)The Union levies, collects and distributes the proceeds of income tax between itself and the States
(b)The Union levies, collects and keeps all the proceeds of income tax to itself
(c)The Union levies and collects the tax but all the proceeds are distributed among the States
(d)Only the surcharge levied on income tax is shared between the Union and the States
Attempt This Question
Not attemptedCorrect Answer: (a) The Union levies, collects and distributes the proceeds of income tax between itself and the States
Article 270 provides that taxes on income other than agricultural income are levied and collected by the Union but the net proceeds are distributed between the Union and the States on the basis recommended by the Finance Commission. Thus the Union both collects and shares the revenue; surcharges, however, are not shared. Therefore option (a) is correct. ([constitutionofindia.net](https://www.constitutionofindia.net/articles/article-270-taxes-levied-and-distributed-between-the-union-and-the-states/?utm_source=openai))
Related Current Affairs
Related UPSC Questions
More from Public Finance & Finance Commission
Frequently Asked Questions
What is the correct answer to this UPSC 1999 Indian Polity question?▼
The correct answer is option (a): The Union levies, collects and distributes the proceeds of income tax between itself and the States. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Public Finance & Finance Commission question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 1999, GS Paper 1, as Question 18. It falls under Indian Polity > Public Finance & Finance Commission.
What is the difficulty level of this UPSC question?▼
This question is rated "easy". It tests basic recall and most well-prepared aspirants should answer it correctly.
How many UPSC Prelims questions have been asked from Public Finance & Finance Commission?▼
UPSC has asked 13 questions from Public Finance & Finance Commission (under Indian Polity) across multiple years. Visit the topic page to see the full list and year-wise trends.