Question

Statement I: Panchayati Raj Institutions (PRIs) have the power to levy and collect taxes on houses and property within their jurisdiction.

Statement II: Property tax is a non-tax revenue source for Gram Panchayats.

• A. Only Statement I is correct.
• B. Only Statement II is correct.
• C. Both Statement I and Statement II are correct.
• D. Neither Statement I nor Statement II is correct.

Answer 1

Answer:

A. Only Statement I is correct.

• Statement I is correct as PRIs are empowered to collect taxes on property and houses.

• Statement II is incorrect because property tax is a tax revenue, not a non-tax revenue.