Consider the following statements: In India, taxes on transactions in Stock exchanges and futures markets are 1. levied by the Union 2. Collected by the States Which of the statements given above is/are correct?

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Q: 85 (IAS/2010)
Consider the following statements: In India, taxes on transactions in Stock exchanges and futures markets are
1. levied by the Union
2. Collected by the States
Which of the statements given above is/are correct?

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,138,63,138,6,51,6

keywords: 

{'states': [1, 0, 0, 1], 'taxes': [2, 1, 1, 0], 'union': [17, 3, 24, 36], 'stock exchanges': [0, 0, 0, 1], 'futures markets': [0, 0, 1, 0], 'transactions': [0, 0, 2, 7], 'india': [8, 1, 7, 13]}

The correct statement is option 1 only.

Explanation:

In India, taxes on transactions in stock exchanges and futures markets are levied by the Union Government, and not collected by the states. The Union Government levies Securities Transaction Tax (STT) on transactions in securities and commodities futures markets. The STT was introduced in 2004 and is collected by the stock exchanges.

Therefore, the correct answer is option 1 only.

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