Question

Which one of the following taxes is levied and collected by the Union but distributed between Union and States?

  1. Corporation Tax
  2. Tax on income other than on agricultural income
  3. Tax on railway faires and freights
  4. Custom Duty

Answer:

Option B: Tax on income other than on agricultural income

Detailed Solution:

The correct answer is “Tax on income other than on agricultural income”.

The tax that is levied and collected by the Union government but is distributed between the Union and the States is: (2) Tax on income other than on agricultural income