Q: 18 (IAS/1999)
question_subject:
Economics
question_exam:
IAS
stats:
0,128,66,128,27,25,14
keywords:
{'union levies': [0, 1, 0, 0], 'levying': [0, 1, 0, 0], 'tax': [0, 0, 0, 1], 'income tax': [0, 0, 0, 1], 'union': [17, 3, 24, 36], 'collects': [0, 1, 0, 0], 'states': [1, 0, 0, 1], 'distribution': [0, 0, 1, 0], 'proceeds': [0, 1, 1, 1], 'income': [0, 3, 0, 0], 'surcharge': [0, 1, 0, 0], 'collecting': [0, 1, 0, 0]}
The correct statement regarding the levying, collecting, and distribution of Income Tax is:
The Union levies, collects, and distributes the proceeds of income-tax between itself and the States.
Income Tax is a concurrent subject under the Indian Constitution, which means both the Union (Central Government) and the States have the power to levy and collect income tax. The Union levies and collects the income tax, and then distributes a portion of the proceeds among the States based on the principles laid down by the Finance Commission. The distribution is done to ensure a fair and equitable distribution of resources between the Union and the States.