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Q84 (IAS/2010) Polity & Governance › Federalism & Emergency Provisions › Seventh Schedule lists Answer Verified

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?

Result
Your answer: —  ·  Correct: A
Explanation

Entry 90 of the Union List (Seventh Schedule) explicitly assigns “Taxes other than stamp duties on transactions in stock exchanges and futures markets” to the Union, meaning the Centre has the power to levy such transaction taxes [1]. Official summaries and statistical-yearbook listings also record these transaction taxes under central taxes, reinforcing that they are Union subjects (and not State subjects) for levy and administration [2]. Therefore statement (1) is correct and statement (2) is incorrect: these taxes are levied by the Union and are not taxes that States independently collect under their taxation heads.

Sources

  1. [1] Indian Polity, M. Laxmikanth(7th ed.) > Chapter 92: World Constitutions > 710,r/f Indian Polity > p. 710
  2. [2] https://www.mospi.gov.in/sites/default/files/Statistical_year_book_india_chapters/DIRECT-INDIRECT%20TAX-WRITEUP.pdf
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SIMILAR QUESTIONS

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Consider the following statements 1. In India, the Union can legislate on subjects on the State List only during emergency. 2. The words ‘socialist’ and ‘secular ’ were added to the Preamble of the Constitution of India by the 46th Amendment. Which of the statements given above is/ are correct ?

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