Question

Agricultural Income Tax revenue goes to which of the following governments in India?

• A. State Governments
• B. Central Government
• C. Collected by State Governments , delivered to Central Government
• D. Collected by Central Government, delivered to State Governments

Answer 1

Answer:

A. State Governments

The taxing powers of the central government encompass taxes on income (except agricultural income), excise on goods produced (other than alcohol), customs duties, and inter-state sale of goods. The state governments are vested with the power to tax agricultural income, land and buildings, sale of goods (other than inter-state), and excise on alcohol. Local authorities such as Panchayat and Municipality also have power to levy some minor taxes.