UPSC 1999 › Indian Polity › Public Finance & Finance Commission

1 question · 1999 · answers as per the UPSC key

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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
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Answer: (a) The Union levies, collects and distributes the proceeds of income tax between itself and the States